I am trying to figure out the best plan to diversity the retirement fund without sacrificing good life for my family. We are 39 years old and have three kids (5, 7, and 10 years old). Right now, I am maxing out 401K and no money is going into Roth IRA. I want to change on how I am doing this to ensure I have reasonable retirement and still be able to take family to camping, vacations, etc.
I have 100K in traditional IRA that was rolled over from my old 401k with no money going in. I have been thinking about converting this to Roth IRA. I also have 25K in my current 401K. I was jobless for almost 5 years and that is why I am behind on my 401K. My wife has few thousands in Roth IRA. I have about 14k in stocks, but I want to sell them all and just focus on 401K and Roth IRA. Is that good idea or bad idea?
Which is better?
Option A.
Put $17,500 to 401K
Put $5,000 to Roth IRA
Put $5,000 to my wife’s Roth IRA (Can I do this? My wife is a stay at home mom)
This option is stress free and ensures I will have good retirement fund.
Option B.
Put $10,000 to 401K
Put $5,000 to Roth IRA
Put $5,000 to my wife’s Roth IRA (Can I do this? My wife is a stay at home mom)
Buy 4-8 rental properties with mortgage (cannot pay cash for this property)
This option will free up $7,500 for fun things like camping, vacations. This option will also generate some income from rental properties. However, I want to make sure I have enough income for retirement.
Let me know if you need more info or if we should do financial health check, so you can give me better suggestions.
I have 100K in traditional IRA that was rolled over from my old 401k with no money going in. I have been thinking about converting this to Roth IRA. I also have 25K in my current 401K. I was jobless for almost 5 years and that is why I am behind on my 401K. My wife has few thousands in Roth IRA. I have about 14k in stocks, but I want to sell them all and just focus on 401K and Roth IRA. Is that good idea or bad idea?
Which is better?
Option A.
Put $17,500 to 401K
Put $5,000 to Roth IRA
Put $5,000 to my wife’s Roth IRA (Can I do this? My wife is a stay at home mom)
This option is stress free and ensures I will have good retirement fund.
Option B.
Put $10,000 to 401K
Put $5,000 to Roth IRA
Put $5,000 to my wife’s Roth IRA (Can I do this? My wife is a stay at home mom)
Buy 4-8 rental properties with mortgage (cannot pay cash for this property)
This option will free up $7,500 for fun things like camping, vacations. This option will also generate some income from rental properties. However, I want to make sure I have enough income for retirement.
Let me know if you need more info or if we should do financial health check, so you can give me better suggestions.
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