So, I've finally gotten DH to agree to a budget (allowance) that will (hopefully) prevent him from spending all our money, and I'm feeling good about our finances for the first time... well, ever! I've got another month or two of catching up on bills, but after that I want to start saving for the future and I need advice!
We had a 401k with his last company... but his current company does not offer it. So... is an IRA the best choice? What's the difference between a regular IRA and a Roth IRA?
Next, we need to start saving for the kids future. We're in CA... and I don't necessarily want them to be limited to a 4 year college degree. If they want to go to a trade school, or something like that, I want them to be able to use the money for that as well. What is the best option for this kind of savings?
TIA!
ROTH means you pay taxes now and not later. I am not a financial expert, but my research said that you should have both to diversify since we cannot really predict what our taxes will be in the future. Based on that you probably want to keep your current 401k as is, then add a Roth 401k or Roth IRA.
For college savings you can open a 529 account, but I believe those normally have to be used at universities or colleges... not trade schools. Double check with your bank or credit union before you put money in it.
Quoting yvonne37:congratulations on your "take over" approach. I agree with the ladies that posted before. Personally I would sit with someone at the bank you work with and see what they can offer you, because every family is different. Good luck :)
This.
Yay so happy you have adjusted the budget. I wish I had advice on college savings but I do not.
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on Jul. 31, 2012 at 2:21 PM