Author Topic: Young Couple - Where to Invest?  (Read 1122 times)

MrGville

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Young Couple - Where to Invest?
« on: October 24, 2016, 02:28:18 PM »
Hello-

My fiance and I are getting married in December and will be combining our finances.  I need some advice on how/where we should invest our money. 

In 2017 we will earn a combined ~$95k.  Our goal for the year is to only spend the equivalent of her paycheck...~$38,500.  Where should we allocate our savings.

Both of our employers contribute to our retirement accounts even if we do not contribute ourselves.  My employer contributes 10% of my salary to an SEP IRA (~$5,600), and hers contributes 7.5% of her salary to her 401k (~$2,900).  This money is not included in our salaries, but is an extra benefit. 

As of now, our plan is to contribute $18,000 of our savings to her 401k, $11k to our traditional IRAs, max out my HSA, and then put any leftovers in a brokerage account.  All money invested will be in index funds in either vanguard or fidelity.

We typically spend ~2,000 a month, so we should be able to easily cover expenses on the equivalent of her paycheck. 

Open to all advice and follow-up questions.  Thanks!

TexasRunner

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Re: Young Couple - Where to Invest?
« Reply #1 on: October 24, 2016, 03:33:56 PM »
I would say you're on the right track.

After what you have posted, you'll be looking at 20,750$ annually into your regular brokerage account.  You should write your congressman to see if we can get IRA limits increased for people without 401k's...  Seriously.  :)

But yes, that appears to be the most tax-efficient route based on what you've described.  Did you and your fiancee discuss the potential for divorce / how to split the monies saved in individual tax-deferred accounts if you were to split up?...  Something to consider.