Author Topic: Investment plan suggestions  (Read 810 times)

Barty_1021

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Investment plan suggestions
« on: December 16, 2020, 08:29:37 AM »
I’m new to the FIRE community, and looking for suggestions on investment accounts for my wife’s self-employed business. She left a corporate career years ago to be a stay-at-home mom for our 2 sons, bless her heart. Now that they are older, she’s started a business that’s doing rather well. I work in the corporate world, and I’ve been maxing my 401k contributions for years, and started maxing out a Roth IRA this year. We haven’t been investing anything beyond that, but we want to start socking away some of my wife’s income. She brought in ~30k last year and projects to hit 80k in the next year or two. We were thinking of setting up a Roth IRA for her & maxing it out, then setting up another account, and were looking at the SEP or solo 401k options. We’d like some flexibility in potentially using some of the funds for our boys’ college tuition. We’re hesitant to setup a 529, since the college loan situation might be heading for an overhaul, and not sure our boys will end up going to college, unless someone can convince us otherwise.

Archipelago

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Re: Investment plan suggestions
« Reply #1 on: December 16, 2020, 08:35:56 AM »
Hi there! Welcome to the MMM community. I'd recommend making a 'Case Study'. With more information, we'll be able to better assist you!

https://forum.mrmoneymustache.com/case-studies/how-to-write-a-'case-study'-topic/

It does sound like your wife could be a good candidate for setting up a SEP IRA or Solo 401(k). They're flexible plans that really let you juice your tax sheltered retirement savings. Keep in mind if you're going to establish one, it's gotta be done by the end of the calendar year! I'll recommend Fidelity. It's a great company. You have until tax day to make contributions, but the plan would need to be set up by the end of 2020.

When you add more figures and goals to your post, we can assist better!

MDM

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Re: Investment plan suggestions
« Reply #2 on: December 17, 2020, 01:54:27 AM »
Solo 401(k) plan - Bogleheads (and links therein) might be worth reading.

Buffaloski Boris

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Re: Investment plan suggestions
« Reply #3 on: December 20, 2020, 06:23:21 PM »
I suggest posting a case as well. Given that your business has done well, have you considered buying another?