What is the reasonable HHI income for wife to stay home?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't stay at home spouses realize they are losing out on retirement savings like 401k + Employer match?

Of course they realize that. It is still possible to retire with one income if you're smart about saving and investing. Also, a lot of SAH parents do it for a few years then eventually go back to some type of work.

With a federal government pension, this is significantly less of a concern. Also, our family has always maxed out our retirement savings (including non-working spouse when she was working) so there's more than enough money for a comfortable retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't stay at home spouses realize they are losing out on retirement savings like 401k + Employer match?

Of course they realize that. It is still possible to retire with one income if you're smart about saving and investing. Also, a lot of SAH parents do it for a few years then eventually go back to some type of work.

With a federal government pension, this is significantly less of a concern. Also, our family has always maxed out our retirement savings (including non-working spouse when she was working) so there's more than enough money for a comfortable retirement.

I would hope that they have a strong relationship. I always worked (DH earns a big salary and we live below our means) even though there were crazy years so I would be able to support myself if needed. Luckily, we are emptynesters, happily married and have two nice incomes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$150 for us. One kid.

Us too. I worked until the kid was 5. Our expenses are very low and our savings above average. We live in DC.

So your parents bought you a house?

Nope. We bought our own house. No parent or family help whatsoever. Put ourselves through undergrad and grad school as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just asked my husband this question - he said 400k.

Tell him to get a better job then.

He makes 600k as a W2. But thanks for the snark.

NP, overeducated single mom making $150k who wants to make $600k as a W2, what job is a W2?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just asked my husband this question - he said 400k.

Tell him to get a better job then.

He makes 600k as a W2. But thanks for the snark.

NP, overeducated single mom making $150k who wants to make $600k as a W2, what job is a W2?

employee (tax form) and not self employed

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just asked my husband this question - he said 400k.

Tell him to get a better job then.

He makes 600k as a W2. But thanks for the snark.

NP, overeducated single mom making $150k who wants to make $600k as a W2, what job is a W2?

employee (tax form) and not self employed

Got it, thanks.

[Anonymous]

So I am actually thinking about doing this- DH and I are still talking through the pros/cons. We have 3 (5 and 3 year old in daycare, and an infant with a nanny). He makes 200k in the private sector and I make 100k as a fed. My take home money basically goes to the nanny after I pay for healthcare and retirement. Also, I am not enthusiastic about my job. Both DH and I currently feel like we are both stretched so thin, mentally and time-wise, that we aren't fully successful at any of our responsibilities.

I'd be watching the baby at home, and I'd fully take on all the home responsibilities and family logistics stuff, like bill paying, etc. This would free up a ton of DH's time so he could focus more on work. He's enthusiastic about this arrangement, but I worry about giving up my fed stability and retirement benefits.

One thing we were discussing, is that instead of him maxing out his 401k, if he did a half portion and then contributed half to an IRA for me. This would assuage my fears that if something happened to us, I wouldn't be left high and dry because I left the workforce during my prime working years to enable him to focus on his career.

Has anyone done something similar to this? Or made a similar arrangement?

[Anonymous]

Enough to cover our expenses and savings goal with a 15% buffer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think it’s actually the other way around for most people. There is an income below which it doesn’t make sense for both parents to be working. If one or both parents is making less than probably $40 or $50k a year, financial whoever makes the least should stay home.

At the higher ends, it’s all personal preference.

+1. I make 200k. Spouse could make 40-50k but after taxes, what’s the point. It’s so much better to be SAH and spouse takes care of everything in home and picking up our DS, takes him to activities, etc..

I made $50K when we started having kids. I make $200K now. Looking at current salary in a vacuum is very short-sighted and common financial mistake.

[Anonymous]

Anonymous wrote:So I am actually thinking about doing this- DH and I are still talking through the pros/cons. We have 3 (5 and 3 year old in daycare, and an infant with a nanny). He makes 200k in the private sector and I make 100k as a fed. My take home money basically goes to the nanny after I pay for healthcare and retirement. Also, I am not enthusiastic about my job. Both DH and I currently feel like we are both stretched so thin, mentally and time-wise, that we aren't fully successful at any of our responsibilities.

I'd be watching the baby at home, and I'd fully take on all the home responsibilities and family logistics stuff, like bill paying, etc. This would free up a ton of DH's time so he could focus more on work. He's enthusiastic about this arrangement, but I worry about giving up my fed stability and retirement benefits.

One thing we were discussing, is that instead of him maxing out his 401k, if he did a half portion and then contributed half to an IRA for me. This would assuage my fears that if something happened to us, I wouldn't be left high and dry because I left the workforce during my prime working years to enable him to focus on his career.

Has anyone done something similar to this? Or made a similar arrangement?

Retirement savings are martial funds. Is he contributing to a Roth IRA or a traditional IRA? If the latter, I don't think that's a good arrangement.

[Anonymous]

Personally, we would need to be independently wealthy- or at least have enough savings for 3-5 years of expenses. Essentially, neither of us wants the mental burden of being the only breadwinner... the stress of knowing that your job is the only one and heaven forbid something happen to that job. We would need to not have that stress. To know that we have plenty of money and plenty of time if something changed with the one workers job.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So I am actually thinking about doing this- DH and I are still talking through the pros/cons. We have 3 (5 and 3 year old in daycare, and an infant with a nanny). He makes 200k in the private sector and I make 100k as a fed. My take home money basically goes to the nanny after I pay for healthcare and retirement. Also, I am not enthusiastic about my job. Both DH and I currently feel like we are both stretched so thin, mentally and time-wise, that we aren't fully successful at any of our responsibilities.

I'd be watching the baby at home, and I'd fully take on all the home responsibilities and family logistics stuff, like bill paying, etc. This would free up a ton of DH's time so he could focus more on work. He's enthusiastic about this arrangement, but I worry about giving up my fed stability and retirement benefits.

One thing we were discussing, is that instead of him maxing out his 401k, if he did a half portion and then contributed half to an IRA for me. This would assuage my fears that if something happened to us, I wouldn't be left high and dry because I left the workforce during my prime working years to enable him to focus on his career.

Has anyone done something similar to this? Or made a similar arrangement?

Retirement savings are martial funds. Is he contributing to a Roth IRA or a traditional IRA? If the latter, I don't think that's a good arrangement.

I'm the PP above... what would you recommend?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it’s actually the other way around for most people. There is an income below which it doesn’t make sense for both parents to be working. If one or both parents is making less than probably $40 or $50k a year, financial whoever makes the least should stay home.

At the higher ends, it’s all personal preference.

+1. I make 200k. Spouse could make 40-50k but after taxes, what’s the point. It’s so much better to be SAH and spouse takes care of everything in home and picking up our DS, takes him to activities, etc..

I made $50K when we started having kids. I make $200K now. Looking at current salary in a vacuum is very short-sighted and common financial mistake.

Good for you but most people don't quadruple their incomes in a matter of years (barring exceptions like a doctor in residency, etc.).

[Anonymous]

Anonymous wrote:

Anonymous wrote:$150 for us. One kid.

Must add - 11 yr old kid in private and many activities and one big trip. But first we paid off cars and home and had $1M in retirement. House worth $800k. 529 is about $200k. I retired at 45 last year. DH will retire in 12 years.

We have $300k+ in 529, about $1.1M in retirement, and home equity worth about $800k, but even if the mortgage was paid off, and we owned a house worth $1.6 million outright, I wouldn't personally feel comfortable retiring on our current assets and going to one salary. You're braver than I am!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it’s actually the other way around for most people. There is an income below which it doesn’t make sense for both parents to be working. If one or both parents is making less than probably $40 or $50k a year, financial whoever makes the least should stay home.

At the higher ends, it’s all personal preference.

+1. I make 200k. Spouse could make 40-50k but after taxes, what’s the point. It’s so much better to be SAH and spouse takes care of everything in home and picking up our DS, takes him to activities, etc..

I made $50K when we started having kids. I make $200K now. Looking at current salary in a vacuum is very short-sighted and common financial mistake.

It depends on your profession.