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Old 01-16-2009, 08:47 AM
Like2Plan Like2Plan is offline
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Retirement Accounts:
As others have mentioned, you are going to need a more robust retirement savings plan. If I had to give a general guideline, it would be a goal of at least 15-20% of your income. Your DH starting out is making a very good income, but I would say his lifetime earning potential is probably pretty doggone good and your goal is to replace income at the end of your income earning stream. That could be quite a bit more than what he is making just starting out.

Some questions: Will your DH be eligible for any kind of pension through his place of work?

You should have your own retirement account. Actually both you and your DH could contribute to a non-deductible IRA. In 2010, you could even convert those IRA's into a Roth because they are removing the income limits on conversions. You would have to pay taxes on the earnings only, so it probably wouldn't be a big amount on the taxes.
Article on Ask the Expert: Demystifying IRA Conversion Rules

income phase out chart for traditional and roths

Last edited by Like2Plan : 01-16-2009 at 09:07 AM. Reason: spelling
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