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Posted: 1/21/2013 12:52:00 PM EDT
Ok.
So my wife and I are "career changers" (went from a career with shit pay and no bennies to education).  We're currently in our 9th year teaching and 41 and 40 years old.  Our second kid is going to be out of full time daycare ($$$) next year, so we're going to start saving more aggressively.  We curently have a Roth.  We're thinking about starting up another Roth in her name and each of us starting up a 403b.  Would it be better to have one joint 403 or two separate ones?  Should we keep all our investments within the Roth/403b or would be be better to venture into a "regular" stock portfolio?
Link Posted: 1/21/2013 2:34:25 PM EDT
[#1]
Buy this book and read it before making any decisions.  It is extermely important you understand all the available options before choosing one.

http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365/ref=sr_1_1?ie=UTF8&qid=1358811011&sr=8-1&keywords=bogleheads+guide+to+investing
Link Posted: 1/21/2013 3:43:17 PM EDT
[#2]
Quoted:
Ok.
So my wife and I are "career changers" (went from a career with shit pay and no bennies to education).  We're currently in our 9th year teaching and 41 and 40 years old.  Our second kid is going to be out of full time daycare ($$$) next year, so we're going to start saving more aggressively.  We curently have a Roth.  We're thinking about starting up another Roth in her name and each of us starting up a 403b.  Would it be better to have one joint 403 or two separate ones?  Should we keep all our investments within the Roth/403b or would be be better to venture into a "regular" stock portfolio?


I've got some thoughts on your last question.

For most people, it makes the most sense from a taxation perspective to keep all your investments in a tax advantaged account like a Roth or 403B.  I can give you two scenarios though in which it would make sense to venture beyond a regular stock fund.

1)  If your annual savings goals exceed the limits of a Roth ($5,500) and 403B ($17,500).  If you are late to the game and need to exceed a normal retirement savings rate of 15%-20% to catch up, then this might apply to you.

2)  If you have medium term investment goals in addition to your long term retirement goals.  Most tax advantage accounts have a limit in terms of how early you can withdraw money without a penalty.  For a Roth IRA it's 59.5 years of age.  If you have investment goals that fall prior to that window either due to early retirement or simply wanting to have some unencumbered liquid assets available to you then it may make sense.  

I'm 30 and have a Roth IRA, 401k, and a non-retirement investment account for a combination of the reasons above.

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