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help me unravel husband's shambolic retirement
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blakekr
Posts: 2 Newbie
I'm trying to clean up the mess of my new husband's finances after 10 years with a 'financial guy' he met via a cold call. It is not pretty.
My husband's entire retirement (not counting his school pension; he's a teacher) is in two 403B plans that enjoy a rate of return of less than 2%. :mad: About 30K all told (after 18 years of contributing!) He also has quite a bit of debt, about 35K.
I'm in a high tax bracket, which means that we both are now. I want to pay off his debt, clean out these sad 403Bs and roll them into a proper retirement account at Fidelity, which has some very nicely performing funds. I've never encountered 403Bs before, though, and my brain is starting to melt down a little with all the piece-parts here.
I'm not sure if there's special rules for teachers. I have a Keogh so I can sock away a lot of money per year. He would want to sock away more money too once the debt is paid off and hopefully get an income tax break on that. I guess my questions are:
- ideally he'd want a vehicle that isn't pretax, I think, given our bracket now (tho you could probably make an argument both ways) ... thoughts?
- he has no other plans besides these 403Bs and the school pension ... what would you recommend we open for him? 401K? IRA? Roth IRA?
Or does the fact that we file jointly right now mean we should merge retirement plans?
- Can you roll 403Bs into any of the above?
- Do 401Ks allow us to contribute more per year? That's important.
Feel free to tell me to go back to the drawing board and research more on any of this, I just feel like my brain is melting down, and I want to cut through the jumble and start fixing the situation as quickly as possible.
Thanks so much for reading!
My husband's entire retirement (not counting his school pension; he's a teacher) is in two 403B plans that enjoy a rate of return of less than 2%. :mad: About 30K all told (after 18 years of contributing!) He also has quite a bit of debt, about 35K.
I'm in a high tax bracket, which means that we both are now. I want to pay off his debt, clean out these sad 403Bs and roll them into a proper retirement account at Fidelity, which has some very nicely performing funds. I've never encountered 403Bs before, though, and my brain is starting to melt down a little with all the piece-parts here.
I'm not sure if there's special rules for teachers. I have a Keogh so I can sock away a lot of money per year. He would want to sock away more money too once the debt is paid off and hopefully get an income tax break on that. I guess my questions are:
- ideally he'd want a vehicle that isn't pretax, I think, given our bracket now (tho you could probably make an argument both ways) ... thoughts?
- he has no other plans besides these 403Bs and the school pension ... what would you recommend we open for him? 401K? IRA? Roth IRA?
Or does the fact that we file jointly right now mean we should merge retirement plans?
- Can you roll 403Bs into any of the above?
- Do 401Ks allow us to contribute more per year? That's important.
Feel free to tell me to go back to the drawing board and research more on any of this, I just feel like my brain is melting down, and I want to cut through the jumble and start fixing the situation as quickly as possible.
Thanks so much for reading!
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Comments
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In fact, my brain is so limp right now I failed to notice this was a UK board. I also don't know how to delete this post. Sorry about that!0
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No problems, had a quick look round try this link, see if it helps:
http://www.businessranks.com/pension-plans.htmI have worked for 5 years as a Pension Administrator and then a further year in a non-administrator pension role. I am not (and never have been) an adviser. Do not take anything I say as advice, it is information given on the best of my knowledge.0
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