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Hi All, I have a question about retirement planning. First, by way of background, my wife and I are mid thirties and committed to saving for retirement. Currently my wife makes 103,000 per year and is putting away 12% of her paycheck pre-tax in her 403b retirement plan. I make ~61,000 per year and put ~10% into my 403b per month. We both have roth IRAs that we try to contribute to as much as possible each year and file our taxes jointly.

I’m a postdoctoral researcher and in a couple months I’m going to start a new fellowship that doesn’t offer a pre-tax retirement plan (I expect to be there for 2 or so years). Once my fellowship ends, I expect to find a job in which my income will increase substantially (maybe by 80-100%), which might affect how I want to use my roth IRA now. Further, my wife’s income might jump by 30,000 or so in the next year (depending on if her submitted grants are funded), which would cause our joint income to be right around the maximum for contributing to Roth IRAs

One option we thought of is for my wife to increase her pre-tax contribution to her 403b and divert more of my paycheck toward our cash-stream (although, her max yearly contribution is 18500 which is still below what we want to save as a couple), but I don’t know if this is an optimal strategy.

I’m still learning about personal finance so I’m wondering if there are other savings mechanisms that I may not have heard about that have tax advantages. I didn’t find a clear answer in the PF wiki, so any thoughts that may send me in the right direction would be fantastic.

Thanks for any advice in advance.



Submitted September 03, 2018 at 01:03PM by understated_banana https://ift.tt/2LU11pd

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