Author Topic: Finding the Exit  (Read 998 times)

la Condessa

  • 5 O'Clock Shadow
  • *
  • Posts: 47
Finding the Exit
« on: August 15, 2019, 06:28:06 AM »
Hi!  Iím a stay-at-home mom and my husband is a public prosecutor.  We had planned on staying with this work all the way through, but our plans need to change.  My husband is not going to be able to take this for another 23 years for the full pension, and would like to make a plan for a career change within about five years.  Iím trying to financially prepare us for this. 


As I work my way through the Investment Order, Iím wondering if it makes more sense to invest in a traditional IRA to save on taxes, or a Roth IRA so that we can access those funds without penalty if we need to during the transition period between careers.  We are in the 12% federal marginal income tax bracket, but we live in a high income tax state, and pay more on our state income tax than federal.

Any thoughts on this specifically or ideas on how to prepare are welcome.

BicycleB

  • Magnum Stache
  • ******
  • Posts: 3734
  • Location: Live Music Capital of the World
  • Older than the internet, but not wiser... yet
Re: Finding the Exit
« Reply #1 on: August 15, 2019, 07:49:01 AM »
One way to plan is make a spreadsheet projecting year by year expenses, even if just estimated ones, and defining year by year what source of cash would fund those expenses. Then you can plan your investments so that they are in a format that is accessible when needed.

la Condessa

  • 5 O'Clock Shadow
  • *
  • Posts: 47
Re: Finding the Exit
« Reply #2 on: August 16, 2019, 07:20:39 AM »
One way to plan is make a spreadsheet projecting year by year expenses, even if just estimated ones, and defining year by year what source of cash would fund those expenses. Then you can plan your investments so that they are in a format that is accessible when needed.

Thank you for the advice.  Iím trying to take itójust struggling to figure out those estimates.  The kids will be ten to fifteen then.  A lot rides on whether they want to attend public high school, or we continue to homeschool through our charter that pays for all their school- and extracurricular-related expenses.