Posting on throwaway because I don't want this linked to my main account.
Hoping this isn't too jumbled, as one of my health related issues has affected me cognitively. Aka I have Swiss cheese for brains and am confusing af. Haha
I'm trying to figure out the best way to allocate $40k cash and set up my and my partner's accounts and could really use some help. For context, I'm 32 and my boyfriend (we've been together for over a decade and for all intents and purposes we treat our finances as if we're married) is 40.
My boyfriend makes $59k a year before taxes. I receive $810 a month in SSDI benefits. Neither of us have anything put away for retirement. We don't have any credit card debt, car loans, or any other large debt (bf owes about $600 in student loans and mine are in disability discharge).
We're able to put my SSDI in a savings account every month and with proper budgeting my boyfriend should be able to save around $700 a month (however this can be highly variable due to misc. medical costs). I'm struggling trying to figure out how to allocate our accounts while also taking into consideration my medical needs (I have a habit of over saving while neglecting my medical needs).
First and foremost I want us to start putting away for retirement so I'm thinking this may be the best option for us:
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My boyfriend should max out his 401K contributions (for employer match program) and be depositing 10% in every month since he's already so far behind. This would reduce the $700 extra he's making to around $300 since around $400 a month would go to 401k.
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I should open up a Roth IRA and deposit the full yearly limit of $5,500 and automate my account to deposit small portions into my IRA every month to max out my IRA limit every year.
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We should set aside $20k for a down payment for a house which leaves us with around $14,500 cash. Then we should put aside money for an emergency fund and I could use the rest for medical costs.
Is this a good idea? Or is this not enough for retirement and we should be considering opening an IRA for my boyfriend as well? Does this post even make sense? 🤔 How do I ensure my bf isn't going to be working until he's 90 (or homeless) because my body crapped out on us and I make less than minimum wage with disability benefits?
TL;DR: What's the best way to juggle medical expenses vs saving for retirement and other expenses when you have $40k cash?
Submitted April 24, 2018 at 10:34AM by SickyMcsickThrowaway https://ift.tt/2Hrb9Es
