Anonymous wrote:

Anonymous wrote:The money in retirement will grow slower than the money in your regular investment account and Roth IRA. Money in regular investment account is not taxed until you sell the stock/ETF and even then, it can be nearly 0% plus whatever your state tax is. You are in total control of your money here, but max out Roth first.
The money in retirement accounts, traditional IRA and 401k, will be taxed higher than long term capital gains in investment account.
Traditional IRA and 401k have fees, rules, bad investment choices, penalties, RMD. The match and the tax deduction do not make up the negative aspect of those retirement accounts. The money you lose in the two retirement accounts, will compound forever for someone else.
Do not get sucked in by the match and tax deduction. 529 is just as bad if not worse.
Investing is not a rocket science. You will learn so much and will get much better returns than the bank/administrator. They are not allowed to invest the way that is best for you. You are. They don't know your personal situation. They do bare minimum for everyone while getting max fees.
Learning how to invest should be your focus. This is something you hand down to your kids.
$20k a year into Voo, VTI, and QQQ in Roth and regular account the next 20 years and you are all set.
I retired 5 years after I started to invest. What I learned is more valuable than the money I have now. 401k has never taught anyone anything. perhaps to stay away.
While you wait for the daycare to end, learn all about personal finance from books and even youtube.

Love this comment. Very valuable information.

Anonymous wrote:Op here- forgot I also paid off my student loans this year!

Anonymous wrote:

Anonymous wrote:shouldn't you be getting child support?

He's unemployed

Anonymous wrote:You’ve got this! Great job on higher salary and paying off car. Repeating advice above:

-401k up to match
-ER fund in hysa of 6m to 1y
-Then max out your 401k in an index fund or age based index
-After daycare ends: savings account for upcoming known big expenses such as bathroom renovation, appliances & some to 529 if ER fund and 401k are maxed
-keep your low mortgage house!

Anonymous wrote:You've done great work with your student loan, home ownership, and paying off your care.

You should prioritize maxing out retirement contributions, adding to an emergency fund until you get to 6 months of expenses, and saving a token amount into the kids' 529 plans. Once you have an adequate emergency fund, increase 529 contributions.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:shouldn't you be getting child support?

He's unemployed

If dad is in picture you are not a “single mom.”

Anonymous wrote:The money in retirement will grow slower than the money in your regular investment account and Roth IRA. Money in regular investment account is not taxed until you sell the stock/ETF and even then, it can be nearly 0% plus whatever your state tax is. You are in total control of your money here, but max out Roth first.
The money in retirement accounts, traditional IRA and 401k, will be taxed higher than long term capital gains in investment account.
Traditional IRA and 401k have fees, rules, bad investment choices, penalties, RMD. The match and the tax deduction do not make up the negative aspect of those retirement accounts. The money you lose in the two retirement accounts, will compound forever for someone else.
Do not get sucked in by the match and tax deduction. 529 is just as bad if not worse.
Investing is not a rocket science. You will learn so much and will get much better returns than the bank/administrator. They are not allowed to invest the way that is best for you. You are. They don't know your personal situation. They do bare minimum for everyone while getting max fees.
Learning how to invest should be your focus. This is something you hand down to your kids.
$20k a year into Voo, VTI, and QQQ in Roth and regular account the next 20 years and you are all set.
I retired 5 years after I started to invest. What I learned is more valuable than the money I have now. 401k has never taught anyone anything. perhaps to stay away.
While you wait for the daycare to end, learn all about personal finance from books and even youtube.

Love this comment. Very valuable information.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:shouldn't you be getting child support?

He's unemployed

If dad is in picture you are not a “single mom.”

Anonymous wrote:

Anonymous wrote:shouldn't you be getting child support?

He's unemployed

Anonymous wrote:Newly single mom, two kids under 6yo. 34 years old.

Money:
Salary $135k (net $8k per month)
Retirement $80k (was making only 80k until this year)
House $100-120k equity
College savings $5k
Equity award in company that should be worth at least $100k but hopefully more, two more years til fully vested

Monthly Bills:
$2600 mortgage, taxes, home insurance, utilities
$1650 daycare (7 more months)
$600 groceries + house items
$350 misc kids activities/needs
$150 car insurace + gas
$150 phone/internet
$150 dog food + meds

Debt:
$230k left on mortgage

Bigger looming expenses:
My oven is original from the 1960s, fridge and dishwasher from the 90s
Dryer is also from the 90s
Bathroom needs updated at some point, suspect mold/mildew remediation needed behind the wall

Bigger expenses already handled:
Car paid off this year, less than 10 years old, low miles
New roof, siding, gutters last year
Moved to tankless water heater / new furnace two years ago

I know that I need to focus on retirement first then college second. I don't believe it's realistic I can fully fund college for two kids. Any other specific advice? Should I make extra mortgage payments to pay down faster or is that money better put in retirement if my mortgage rate is 3%? The end in sight for daycare feels hopeful too. Where is it best to build an emergency fund- in a HYSA? Trying to educate myself, have been following this forum for a while.

-Child of two city workers who only taught me that money goes in a savings account and a pension will cover retirement (I don't have a pension).