34 years old, female, solo mom to a 2.5 year old (her dad has her one day a week), divorced at 32 and starting from almost scratch when it comes to retirement planning as my ex did most of it and when we split, I got the house equity ($350k) and he kept his retirement savings ($175k). I’ve since repurchased a home in north county San Diego, California.
How do I maximize playing financial catchup so I’m ready for retirement in 25-30 years?
Income:
- Salary: $150k/year (hoping for a promotion in the next 2 years to get me closer to $180/190k)
- Child support: $36k/year
- Spousal support: $25k/year (ends April 2026)
Balances:
- HYSA balance: $68k ($60k is emergency fund, $8k is in my home renovation fund)
- Savings/checking balance: $12k
- IRA: $27k
- 401k: $13k
- Deferred Compensation: $25k
- E*Trade brokerage account: $1,500
- My new house is valued at $1.05M (I purchased for $920k in late 2022 and did a bunch of renovations using my dad who is a contractor). I owe $630k.
Current savings amounts monthly:
- $800/ month into my HYSA for future home renovations or repairs
- $500/month E*trade brokerage account
- $1200/month pre-tax money into deferred comp
- $280/month pre-tax money into HSA
- $580/month into Fidelity traditional IRA
I have no credit card debt, no student loans, and one car payment ($445/month low interest so I’m
Not paying that off early.)
I can no longer contribute to my company’s 401k since I am considered a “high income earner” and $150k is their threshold for that, which is why I qualify for thejr deferred compensation plan instead. I’m putting the minimum amount (10% of my income) in there to qualify for the company max (free money): 50% of the first 6% contributed and 100% of the next 4% contributed.
What else do I need to do? How else can I maximize my savings? Where is the best place to put my money once I max out my IRA (this is why I opened my E*trade brokerage account so I’m assuming here?). Do I have a chance at growing these retirement accounts enough to retire comfortably? I assume I will remarry and have a partner but I’m not counting on anyone else’s income again
How do I maximize playing financial catchup so I’m ready for retirement in 25-30 years?
Income:
- Salary: $150k/year (hoping for a promotion in the next 2 years to get me closer to $180/190k)
- Child support: $36k/year
- Spousal support: $25k/year (ends April 2026)
Balances:
- HYSA balance: $68k ($60k is emergency fund, $8k is in my home renovation fund)
- Savings/checking balance: $12k
- IRA: $27k
- 401k: $13k
- Deferred Compensation: $25k
- E*Trade brokerage account: $1,500
- My new house is valued at $1.05M (I purchased for $920k in late 2022 and did a bunch of renovations using my dad who is a contractor). I owe $630k.
Current savings amounts monthly:
- $800/ month into my HYSA for future home renovations or repairs
- $500/month E*trade brokerage account
- $1200/month pre-tax money into deferred comp
- $280/month pre-tax money into HSA
- $580/month into Fidelity traditional IRA
I have no credit card debt, no student loans, and one car payment ($445/month low interest so I’m
Not paying that off early.)
I can no longer contribute to my company’s 401k since I am considered a “high income earner” and $150k is their threshold for that, which is why I qualify for thejr deferred compensation plan instead. I’m putting the minimum amount (10% of my income) in there to qualify for the company max (free money): 50% of the first 6% contributed and 100% of the next 4% contributed.
What else do I need to do? How else can I maximize my savings? Where is the best place to put my money once I max out my IRA (this is why I opened my E*trade brokerage account so I’m assuming here?). Do I have a chance at growing these retirement accounts enough to retire comfortably? I assume I will remarry and have a partner but I’m not counting on anyone else’s income again