A little background first:Me: ·$35k rolling from previous employer 401k and profit sharing into Traditional IRA·10% contribution into current employer's 401k plan with 4% of salary match by employerHusband:·$25k rolling from previous employer 401k to Traditional IRA·10% contribution into current employer's 401k plan (no employer match) and 10% contribution into ESPP I believe I'll also be able to put roughly $10k into a cash reserve. My fuzzy plan is to open a Roth for each of us and max it for 2001 with the intentions of contributing the max in future years as well. We are very close to our AGI limit however, so I was thinking of opening two Traditional IRAs to continue to contribute after that point.We also have two children ages, 4 and 2, who have roughly $4000 and $2000 respectively in saving accounts. I've opened two Education Savings accounts, which we'll max until we hit our AGI limit and then I'm looking to continue the contributions into the Oregon 529 plan. I don't like the Oregon fees, so I haven't completely decided on that yet.But, the big question. Am I (are we) heading in the right direction? And can anyone tell me how to pay for full-time childcare expenses on top of all that; I could buy another house at the rate of childcare. (I'm just kidding about how to pay for childcare, but not about being able to buy a house for the costs.)Just want some foolish affirmation and/or new leads.Thanks in advance.
·10% contribution into current employer's 401k plan (no employer match)This stuck out at me. Are you in the highest tax bracket? Does that 401k plan have any good points to it (i.e. nonexistent fees, excellent selection of mutual funds)? If not it might be better to just invest in a taxable account!then I'm looking to continue the contributions into the Oregon 529 plan. I don't like the Oregon feesThen don't use Oregon's plan! You can use any state's plan, it's just that you give up some tax benefits by doing so.which we'll max until we hit our AGI limit Can you find people (non-relatives) under the AGI limit who are willing to contribute into your children's ESAs?Otherwise your plan sounds good.
Good points, thanks.I need to figure benefit/harm of using Oregon's 529 plan versus say Utah. Tax deductions versus low fees.Thanks again!
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