What would you do or have you done?
I need some help. My husband had a 401K with his old company, but because not everyone in the company participated, he was limited to how much he could contribute. With his new company, he can contribute $13,000 a year, substantially more than before. It is This is nice as it reduces tax liability. Although with 5 kids and a mortgage, we already have substantial deductions. If he puts in the max, we would be fine, but there would not be much for extras, like the new car we will be needing soon. Take home would be as if he didn't get a raise.
Now, this 401K has no monthly company match but there is a company contribution at the end of each year (not guaranteed however). We also want to save to remodel the house (5 years away at least). I do not want to take out any more loans for the house. I just want to pay as we go. I am told that if there is no company match then it really isn't that great of deal.
Here are my questions.
1) Are there other pretax investments? My husband didn't think so, but a friend told me there are.
2) Do you save 15% of gross or net?
3) How can I balance saving for retirement and enjoying money now. I don't mean in a greedy way, just fixing the house up and letting kids play sports and such if they want to. I don't indulge my kids in everything, but what if they each wanted to participate in something. Some activities cost at least $50 a month if not more. And then there are vacations and Christmas for which to save.
I should mention that we each have a Roth. We could max those out too. Things would be tight, but not impossible. Thanks for any advice.