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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: jamesbond007 on June 26, 2017, 11:41:53 AM

Title: DW starts her first job next week. No 401K. What do we do?
Post by: jamesbond007 on June 26, 2017, 11:41:53 AM
So happy that DW is able to finally go to work. She has been putting off to take care of our kid. Now that the kid is big enough to go to school, DW is starting her job next week. He job doesn't pay much. About $15 a hour or so. They also don't provide any 401K option. What do we do? Can she setup her own 401k? If so, how? My salary is high to the point that I do a backdoor roth for both of us every year. So, I don't want her dumping stuff in tIRA.


Any suggestions?
Title: Re: DW starts her first job next week. No 401K. What do we do?
Post by: frugaliknowit on June 26, 2017, 02:40:47 PM
Besides IRA's, you have to be a bit creative.  You can pre-pay mortgage, if desired, otherwise "low turnover" or "tax managed" mutual funds. 
Title: Re: DW starts her first job next week. No 401K. What do we do?
Post by: jamesbond007 on June 26, 2017, 04:56:21 PM
Besides IRA's, you have to be a bit creative.  You can pre-pay mortgage, if desired, otherwise "low turnover" or "tax managed" mutual funds. 

I was really hoping there was an option to pay for a 401K somehow :) Oh well, prepaying the mortgage doesn't hurt. Or more will go into my taxable account stash. Thanks for the suggestion though.
Title: Re: DW starts her first job next week. No 401K. What do we do?
Post by: ambimammular on June 27, 2017, 12:31:30 PM
Our family is stuck with the same situation.

Do you have a HSA through your job? You could put the extra dollars there. I also like the idea of throwing the extra income at the mortgage or taxable accounts, if the HSA isn't an option.
Title: Re: DW starts her first job next week. No 401K. What do we do?
Post by: jamesbond007 on June 28, 2017, 10:33:15 AM
Our family is stuck with the same situation.

Do you have a HSA through your job? You could put the extra dollars there. I also like the idea of throwing the extra income at the mortgage or taxable accounts, if the HSA isn't an option.

We do have an HSA option at work but I don't take it. That's probably the only unmustachian thing I do. I am bought into the fear of "What if?" when dealing with health. So HSA is not an option. I guess VTSAX it is :)
Title: Re: DW starts her first job next week. No 401K. What do we do?
Post by: jamesbond007 on June 28, 2017, 10:33:34 AM
A good option for high income individuals is tax free municipal bonds.  I like VWALX.

Will look into this. Thanks for the tip.