New direction

[hockeymom]

Oldest kid is off to college and I am going back to full time work next week after a long time break when youngest child arrived very premature.

Husband stuck in very bad 50/50 business partnership with partner that doesn't contribute and hasn't for 20 years. Holding on for another 3 years to finish paying off big Business loan. It's worse than a bad marriage as there is no divorce option for him.

Going to bank all of my salary to get our emergency fund replenished. Then will be looking for ideas to hit retirement savings hard. We are in mid 40s and we have some but we are behind. We have enough saved in 529 to help with kids college so am now 100% focused on my spouse and I financially.

 

[growing_older]

If your new employer offers 401k or similar program, strongly consider contributing to the max allowed. Even if you have other uses for the money, the tax advantaged space is use it or lose it and there is no provision to use any you may have underutilized in prior years. At planned 100% savings rate, this should be 18k that you can work around and get favorable tax treatment as you build retirement assets.

 

[hockeymom]

I am going back to public service where I was prior. It's a 5% mandatory contribution/state match. Even though my state has a pension that is better off than most, I'm still leery about contributing more to it. The cap is $18,000 per year. My husband does not have a work retirement plan so he will contribute the max $5,500 to IRA in order to get the tax deduction. I will not be able to do that for 2017 as I was able to in past. Suggestions welcome.

 

[2017ish]

Good luck Hockeymom. We basically did the same thing you are doing. I took ~15 years mostly off with kids and came back when youngest got driver's license (and we had fresh/soph in colleges). The second salary was an amazing boost.

 

[hockeymom]

Thank you! It's been almost 10 years of only working very part time so I am ready to go back.