Age Gap/Investments
My husband is 12 years older than I am (he’s 55, I’m 43). He makes double what I make but doesn’t have any benefits(401k, Roth) offered at work. I have about $750k in between 401k, Roth, Invstments where he has only about $500k. My company matches ~25% of my 401k investments (on average, but last year was 50%) so we are trying to max mine out and still contribute max to his Roth IRA. Not sure if this is very smart considering he will retire 12 years before me. Should we contribute more to him? The match is too good to pass up though.. Need advice please.
Terry Says
Retirement accounts are SEPARATE things — despite the fact that you must plan as a family. And this requires a look at the numbers. The cold facts are that women live longer, and the odds say you will have many years to live without him — though I wish you both a long, happy life together. Thus, your own retirement funds are more important. Please keep maxing out your own retirement plan.
And there’s nothing that says HIS savings all have to be in a retirement plan! Set a goal for him to set aside $100k in a CD or money market deposit account. Since he makes more money, he should save more — for both of you!
