No. of Recommendations: 5
Why not a Roth (for both of you) instead of savings or 403b?

If you are already maxing Roths, I would do a taxable brokerage if you already have 2 years of savings. No reason to add more to an account that doesn't even earn the rate of inflation -- invested however you like in a taxable account and likely benefit from favorable tax treatment on the dividends and gains.

Why are you advising against putting the money into the 403(b)? While I agree that a savings account doesn't keep up with inflation, if they are already maxing out Roth IRAs (which, based on previous postings, I believe that they are), the tax savings from a pre-tax contribution is likely to be substantial. And if there is a Roth option in the 403(b), then they would be adding more to Roth accounts.

Upon retirement, the 403(b) can be rolled over to an IRA, or, since the OP's wife is older than 59 1/2, there wouldn't be any penalties for making withdrawals directly from the 403(b).

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