33yo Couple - Need Help Diversifying Assets & Investing

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MoonlightGraham
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33yo Couple - Need Help Diversifying Assets & Investing

Post by MoonlightGraham » Mon Jun 11, 2018 7:55 pm

***Updated OP***
Both Age 33 this year. Have nearly two year old daughter
I became a stay at home mom this year. Previously earned roughly 45-50K per year. Contributed 10%+3% match to retirement through work.
This is a family business that allows me to still contribute to retirement as a part time employee. However, I have not worked any hours in 2018. If I did I would get a W2. I could opt out of retirement. Would this allow me to rollover my retirement that is with Ameriprise Financial?
At some point I will go back to work either consistently part time or full time, but we are likely going to have 1-2 more children within the next 5 years. We have only ever lived on one salary even when we both worked.

When I pick of hours I would receive a W2. However, I can likely opt out of retirement as a part time employee. I'm not sure if opting out will allow me to rollover. I could ask about being a 1099 employee but that would require me to carry insurance (I'm a licensed contractor). Right now I work for my family's business and am covered under their liability and disability policies. I could keep my 401K at Ameriprise and when I do any part time work just contribute 100% of what I make to retirement as we are not currently relying on my income.

Husband works for Fortune 100 company. Makes 68K per year. Contributes 10%+6% match to retirement. Also buys company stock at 15%discount from lowest price during each quarter. Has gotten multiple stock bonuses over the past three years which vest over multiple years. We have roughly 80K in stock. 50K of which is fully vested and we have had for over 1 year. Our investment from the past few years - not including the growth of stock and bonuses given as stock is roughly 25K. Life got away from of us with a kid and a remodel and we didn't realize how our investments were bloated with company stock.

Emergency funds: Have 5 Months of Expenses
Debt: Mortgage - 23K remaining, monthly payment with Taxes & Insurance - $542, 2.75% IR
His Student Loan 22K remaining. $450.00 payment, 2.99% interest rate
Maintaining current minimum payments both will be paid off in roughly 4 yrs.
No other debt, own two cars - one 6 years old, well maintained, one 12 yr old commuter car.
Tax Filing Status: Married Filing Jointly, 1 child
Tax Rate: 12% Federal, 4.25% State
State of Residence: Michigan
Age: 33
Desired Asset allocation: Unsure
Desired International allocation: Unsure

Other than stock we have:
My 401K with Ameriprise Financial, 26K
This is the makeup
CMUAX - COLUMBIA MID CAP VALUE CL A 469.779 $13.68 $6,426.57 (Exp Ratio (Gross) 1.18%, Exp Ratio (Net) 1.17%)
IGLGX - COLUMBIA SELECT GLOBAL EQUITY CL A 791.889 $13.96 $11,054.77 (Exp Ratio (Gross) 1.39%, Exp Ratio (Net)1.38%)
LCCAX - COLUMBIA CONTRARIAN CORE CL A 326.532 $26.00 $8,489.83 (Exp Ratio (Gross) 1.04%, Exp Ratio (Net) 1.04%)
Total Mutual Funds & UITs $25,971.17

His 401K - 82,687.71 through Empower
LIHIX 6.67 % LifePath Index 2045 Account A $5,518.79 (Exp Ratio (Gross)0.24%, Exp Ratio (Net) 0.16%)
LIPAX 93.33% LifePath Index 2050 Account A $77,168.92 (Exp Ratio (Gross) 0.49%, Exp Ratio (Net) 0.41%)

We also have a 529 for our daughter. We contribute $40 biweekly for a total of $1040 yearly.

***I am in process of trying to find out the other funds that are available through our 401Ks.

We want to start diversifying the company stock. Whenever my husband got raises the past few years we have just bumped up retirement or stock purchasing and continued to live as we always have.

Questions:
1. What should I do with my retirement with Ameriprise? I don't hear good things about their fees. How would I go about doing this/where should it go? ***I've contacted them. I'm trying to get a list of available funds I can choose from with my retirement. There is a $75.00 yearly custodial fee.

2. We think we should open Roth IRAs and fully fund them with stock that we can move yearly. We should have enough to move roughly 11K yearly as it moves out of the short term gains. We would continue to fund our traditional 401Ks through employers. Should we attempt to max out our traditional 401ks? This would be a process we would work up to.

3. What should we do to diversify the 50K we have in stock currently? 11K will be for ROTHs we are going to open, unless thats not recommended.

4. Husband is getting a minimum of a 2-3% raise this year, probably within the next month. Our plan was to up his retirement contributions the amount of the raise. We could also run our budget to see if we could get closer to maxing out retirement.

5. Should we keep paying just minimums on Mortgage and Student Loan?

6. Where should we keep our emergency fund? Right now its in a savings account that earns 1.1%

7. If I save money for projects on the house (we bought a fixer upper and its mostly finished, paid all cash for all remodels), should I keep that money anywhere in particular. It would need to be somewhat quickly accessible, say within 4 weeks.

I'm not sure if I'm leaving anything out. I'm really interested in research and learning, and have more time than I did previously when I was working constantly. Please let me know if I need to add more information.

Thanks, Moonlight

__________________________________________________________________________________________________________________________________
*** We could take the stock and pay off my husbands remaining student loans of 22K. Then take that 450$ a month and contribute it toward retirement. That would put another 5400$ a year toward retirement at least. That $450 right now is after tax income, if we were contributing pretax it would amount to more. In addition to upping our contribution based on his raise. Lets say that roughly $8340. That would move us to $13740 contributed yearly to retirement. And we would be bypassing any student loan interest that remains. Its not to the point of maxing out yet, but it gets us a good deal closer.

We could potentially pay off the house as well, that would free up another $300.00 a month we could add to retirement. However, I'll have to see if our crappy mortgage company would penalize us for paying off early. (a portion of the money allocated for the mortgage would remain to continue to pay taxes and insurance). * From what I can tell we can only be penalized for paying off early in the state of Michigan if we paid off in the first three years of the loan. Since we are at roughly 5.5 years, we should be exempt. But our mortgage has been sold 3 times in that time frame and our current mortgage company is terrible and fights me on everything. I send them a request for more information to see what they think, just to get the ball rolling.

This would allow us to be entirely debt free while almost maxing out retirement contributions. We would be roughly at $17,340. We could also lower our stock contribution by 1% and that would likely put us at max 401K contributions.

We will see how we are doing down the road budget wise when we have more children (we figured student loan payments would be done and that would free up money for additional costs related to older children), but hopefully cost of living raises should keep us on budget.
Last edited by MoonlightGraham on Tue Jun 12, 2018 7:27 pm, edited 7 times in total.

ShowMeTheER
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ShowMeTheER » Tue Jun 12, 2018 5:55 am

1) One simple option is to rollover to Vanguard or other place of your choosing. This can be the start of your non-work accounts. Simple investment choices would be either SP500 Index Fund or Target Retirement 2040.

2) Agree on Roth

3) I'd suggest investing in taxable account using same investments as above in #1. Good to start off with and you can always move it around as you become more comfortable. Go all at once or consider X doing bit by bit over a year. AND/OR - start a 529 plan for daughter.

4) Honestly not much difference between the players here. Many like VG or Fidelity. Plenty of investment choices within each and many overlap.

5) Good idea. Does he have Roth 401(k) available? Consider that.

MoonlightGraham
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by MoonlightGraham » Tue Jun 12, 2018 9:13 am

1. Regarding my retirement. I still sometimes pick up hours at my job, does this mean I can't rollover my retirement because I still work there? I would be looking at a Vanguard IRA, correct? Is a traditional IRA my best rollover choice since I would be taxed to covert by 401K to a Roth? Or is it worth the taxes? I haven't picked up any hours yet in 2018. Obviously its June so since I haven't contributed in so long is it possible I'm not considered an employee? I'm not at all sure how this works.

2. I was going to open Roths for both husband and I through Vanguard. Even if he has a Roth Retirement option at work, we should still do this.

3. We currently have a 529 for our daughter that we put 1K into yearly. I realize this isn't a lot, but we were seeing how we would do as a single income household and also wanted to contribute an amount that we could sustain when we have more children.

4. Probably going to go with Vanguard. Any advice about which funds to choose? It seems like the 3 fund approach is best within each section of investment. At our age is 70% stocks, 30% bonds seems like the best choice.


So my next steps are
1. Open a Roth. Fully fund for this year, his and hers. Choose 3 funds.
2. Open another taxable investment account. Move remaining of 'available' company stock to this. If we move this, we would only get taxed on our gains which should keep us within our current tax bracket.
Possible other things to do:
3. Make a large one time contribution to daughters 529 in addition to the yearly 1K.
4. Rollover my retirement. If I can't rollover my retirement because I still work there, is there anything else I can do? When I pick up hours (since we don't rely on my income), should I just invest the money we make or should I contribute 100% to retirement (or at least 3%) so I can receive company match? Although, If I only make 10K a year, I'm getting matched 300$. Is that worth contributing to an Ameriprise retirement fund. Or is there a way to backdoor fund something. (I haven't done enough reading about this yet)
5. Find out if husband has Roth Retirement option through work. Continue to get company match (6%) for traditional retirement. Move extra 4% (currently going to traditional retirement) to Roth Retirement (if available). When raise occurs, add that amount to Roth Retirement Contribution.

ETA: Should our emergency fund be somewhere other than a savings account? Its not earning any money there (1%).

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ruralavalon
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ruralavalon » Tue Jun 12, 2018 11:05 am

Welcome to the forum :) .

MoonlightGraham wrote:
Mon Jun 11, 2018 7:55 pm
His 401K (I don't have exactly details, he is at work) 110K. I can get that tomorrow morning.

I can give a breakdown of my retirement investments and find out more about the makeup of my husbands if that helps.
his 401k.
First of all find out and list the funds he is using in this 401k, and the funds offered in his 401k. You can simply add this to your original post using the edit button (the pencil icon near the upper right corner of your post), it helps a lot if all of your information is in one place.

That is the first step. Because the fund choices in a 401k are limited you will be building your portfolio around what he can do in his 401k. In other words, that information will influence or even determine what it is better to do with other accounts.

your status, employee or contractor?
Second, you have mentioned "sometimes picking up hours" at your former full time employer. Are you an employee who will receive a W-2, or are you a contactor who will receive a 1099?

if you are an employee who will receive a W-2, then check the plan documents and talk to HR about whether you can still contribute to your 401k plan. A 401k plan often excludes part time employees.

Also please add the ticker symbols and expense ratios for the funds you are using in your 401k, and the fund names, tickers and expense ratios for the other funds offered in your 401k. This helps in deciding about a rollover.

Again please simply add this to your original post using the edit button, so that all of your information is in one place.

With that information we can offer ideas on what to do in the way of other accounts.

. . . . .

traditional vs Roth
MoonlightGraham wrote:
Tue Jun 12, 2018 9:13 am
I was going to open Roths for both husband and I through Vanguard. Even if he has a Roth Retirement option at work, we should still do this.
Do not just assume that Roth is better. You are in the 12% federal tax bracket, and have mentioned income of $68k/yr plus stock and bonuses. Traditional contributions are usually better than Roth contributions for most people.

Retirement usually means that employment income has ended. Most people are in a lower tax bracket in retirement. The income tax code is progressive, with a lower tax rate for lower income. Therefore, for most people traditional 401k contributions will probably be better. TFB blog post, "The case against Roth 401k". "I think for most people the majority, if not 100%, of the contribution should go to a Traditional 401(k)."

A pension changes that analysis, so that Roth contributions are likely better if you have a significant pension coming in addition to Social Security. TFB blog post, "Most TSP participants should switch to the Roth TSP". That post discussed the effect of a federal pension, but the analysis should hold for other pensions.

Wiki article, "Traditional vs Roth".
"Tax considerations:
* If your current marginal tax rate is 15% or less, prefer a Roth.
* If you expect to have higher marginal rates than your current marginal rate for most of your career, prefer a Roth.
* If you will have a traditional account or a pension large enough to meet your expected retirement expenses (and you expect to take that pension shortly after retiring), prefer a Roth.
* Otherwise, prefer a traditional account."
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

MoonlightGraham
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by MoonlightGraham » Tue Jun 12, 2018 11:32 am

Thank you.
I updated the original post with the info about husband's traditional401K. I will add a few more things shortly.

It seems like you are saying we should leave his traditional 401K as is. When he gets a raise we should up his contribution. Likely moving to 13% + 6% match. My husband's job trajectory could easily move us towards the 80-100K range over the next five years. This would likely also come with more stock if he stays with current company.

When I pick of hours I would receive a W2. However, I can likely opt out of retirement as a part time employee. I'm not sure if opting out will allow me to rollover. I could ask about being a 1099 employee but that would require me to carry insurance (I'm a licensed contractor). Right now I work for my family's business and am covered under their liability and disability policies. I could keep my 401K at Ameriprise and when I do any part time work just contribute 100% of what I make to retirement as we are not currently relying on my income.

At some point I may go back to work, either consistently part time or full time.

Even if we stick with the traditional 401Ks, should we still start moving some stock towards a Roth IRA? While investing the rest of our available stock?

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ruralavalon
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ruralavalon » Tue Jun 12, 2018 12:46 pm

When you add the list of funds offered in his 401k then it's possible discuss whether it's better to leave his 401k as is. (I don't like the relatively high expense ratio on LifePath 2050, LIPAX, ER 0.41%.) Also does his 401k plan allow Roth contributions? Will he be eligible for a significant pension?

When you list the funds offered in your 401k, then its possible to discuss whether a rollover IRA is even a good idea. Are there any additional fees you pay in your 401k plan, other than the expense ratios? Will your 401k plan allow contributions from part time or occasional employee such as yourself?

For both plans please give fund names, tickers and expense ratios. Please simply add this to your original post using the edit button.

It's probably a good idea to limit your holdings of employer stock, to be more diversified. It's not yet clear to me whether a Roth IRA, or a traditional IRA, might be better in your situation.

Also it might be better to increase his 401k contributions to the annual employee maximum $18.5k, and use some of the proceeds from sale of the company stock to pay living expenses which would otherwise have been paid using his paycheck.

What account is the company stock held in?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

MoonlightGraham
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by MoonlightGraham » Tue Jun 12, 2018 1:47 pm

I thought I updated the OP with ticker symbols and expense ratios. Are those not what you are looking for.

His retirement company Empower says they have a 'Roth'-like 401K available for employees of his company. We are looking into what exactly that means.

My company will let me continue to contribute to retirement as a part time employee. That was what I did for last year. I'm trying to figure out what, if any, additional charges I pay for my retirement handling.

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ruralavalon
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ruralavalon » Tue Jun 12, 2018 1:52 pm

MoonlightGraham wrote:
Tue Jun 12, 2018 1:47 pm
I thought I updated the OP with ticker symbols and expense ratios. Are those not what you are looking for.
I was asking for the fund names, tickers and expense ratios of all of the funds offered in each 401k, not just the funds you are currently using.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

MoonlightGraham
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by MoonlightGraham » Tue Jun 12, 2018 2:22 pm

Not to be an idiot but I can't seem to figure out what ones are offered. When I got to that option it lists 15,466 different mutual funds available.
EDIT: I emailed, hopefully someone will get back to me in 24 hours and I can update the OP

I can't check husband's since he is back at work. Probably tomorrow morning.

It also looks like I am charged a yearly custodial fee of 75$ for my retirement.

Also, I PM'ed you the name of the company we have stock with. Because its my husband's employer I wasn't comfortable listing it on my post.

ExitStageLeft
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ExitStageLeft » Tue Jun 12, 2018 3:45 pm

It might be advantageous to leave your 401k where it is, as long as you can put the money in funds with acceptable expense ratios. The reason to leave it where it is is that it will remain a 401k asset. When you roll it over to an IRA then it loses some of the benefits that remain while it is still in a company retirement plan.

If you think you will be going back to work within ~5 years (with a different employer) then you could roll the Ameriprise 401k into your new employer's plan. Most (many? some?) 401k plans will accept rollovers from other 401k-style plans but not from IRAs. That might not ending up being worth what you end up paying in fees to Ameriprise. Also check and see if your state differentiates an IRA from a 401k when it comes to asset protection.

MoonlightGraham
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by MoonlightGraham » Tue Jun 12, 2018 4:46 pm

Thanks ExitStageLeft

There is a good likelihood I will return to work in 5 years. And decent odds it may be at the same company. Once I get the list of my other fund options I will see what I can find that has a better expense ratio. Do you have a recommendation for what is an acceptable ratio? It looks like we should do the same with my husband’s funds (I.e. find funds with better expense ratios).

Michigan has protection for one IRA up to 1million and unlimited funds in a qualified retirement.

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ruralavalon
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ruralavalon » Tue Jun 12, 2018 6:20 pm

MoonlightGraham wrote:
Tue Jun 12, 2018 4:46 pm
Thanks ExitStageLeft

There is a good likelihood I will return to work in 5 years. And decent odds it may be at the same company. Once I get the list of my other fund options I will see what I can find that has a better expense ratio. Do you have a recommendation for what is an acceptable ratio? It looks like we should do the same with my husband’s funds (I.e. find funds with better expense ratios).

Michigan has protection for one IRA up to 1million and unlimited funds in a qualified retirement.
Different levels expense ratios are acceptable for different fund categories.

In each plan look for the 3-4 funds with the lowest expense ratios in each of these categories
1) domestic stocks
2) international stocks
3) bonds
4) balanced funds or series of target date funds.

For example in his 401k LifePath 2045 (LIHIX) ER 0.16% seems a nice expense ratio. That fund or similar could be a good choice for his 401k.

The idea is to invest in a fund or combination of funds which combine broad diversification (to decrease risk) and low expense ratios (to increase net return).
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

ExitStageLeft
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ExitStageLeft » Tue Jun 12, 2018 6:37 pm

MoonlightGraham wrote:
Tue Jun 12, 2018 4:46 pm
Thanks ExitStageLeft

There is a good likelihood I will return to work in 5 years. And decent odds it may be at the same company. Once I get the list of my other fund options I will see what I can find that has a better expense ratio. Do you have a recommendation for what is an acceptable ratio? It looks like we should do the same with my husband’s funds (I.e. find funds with better expense ratios).

Michigan has protection for one IRA up to 1million and unlimited funds in a qualified retirement.
The problem many small companies face is that the administrative costs of their retirement plan get tacked on to the underlying mutual fund expenses. If you have funds with an ER under 0.2% that would be great. Many employers have plans that have fund expenses starting at 0.75% and going up from there. If it is possible to buy exchange traded funds, you would have to pay a commission on the purchase. If you moved everything in the account into Vanguard Total Stock market ETF (VTI, expense of 0.04%) you would have a fund with an expense ratio 1/30 that of your Columbia funds.

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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by MoonlightGraham » Tue Jun 12, 2018 6:42 pm

I think you might be right about the small company thing. I'm using their search function to find stocks available to purchase, since no one is getting back to me about a list. So far I have yet to find one that is listed I can buy that has an ER lower than 1%. If it is the case that I can't find anything lower than 1%, does this sway me towards converting this account? Or should I still stick with it?

I'm still searching. The retirement advisor for Ameriprise who handles our company is out of town until June 18. I have an email into their corporate contact to see if anyone will send a list. The 'HR' representative is actually my mother. She doesn't know anything. The company owner is my father. I'm pretty sure all of their accounts are through Ameriprise and they fully trust the advisor. It's a can of worms I can't get into with them, but they are unable to provide me any additional information at this time.

ALSO: I'll add this to the OP as well, but we could take the stock and pay off my husbands remaining student loans of 22K. Then take that 450$ a month and contribute it toward retirement. That would put another 5400$ a year toward retirement at least. That $450 right now is after tax income, if we were contributing pretax it would amount to more. In addition to upping our contribution based on his raise. Lets say that roughly $8340. That would move us to $13740 contributed yearly to retirement. And we would be bypassing any student loan interest that remains. Its not to the point of maxing out yet, but it gets us a good deal closer.

We could potentially pay off the house as well, that would free up another $300.00 a month we could add to retirement. However, I'll have to see if our crappy mortgage company would penalize us for paying off early. (a portion of the money allocated for the mortgage would remain to continue to pay taxes and insurance). * From what I can tell we can only be penalized for paying off early in the state of Michigan if we paid off in the first three years of the loan. Since we are at roughly 5.5 years, we should be exempt. But our mortgage has been sold 3 times in that time frame and our current mortgage company is terrible and fights me on everything. I send them a request for more information to see what they think, just to get the ball rolling.

This would allow us to be entirely debt free while almost maxing out retirement contributions. We would be roughly at $17,340. We could also lower our stock contribution by 1% and that would likely put us at max 401K contributions.

We will see how we are doing down the road budget wise when we have more children (we figured student loan payments would be done and that would free up money for additional costs related to older children), but hopefully cost of living raises should keep us on budget.

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ruralavalon
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Re: 33yo Couple - Need Help Diversifying Assets & Investing

Post by ruralavalon » Wed Jun 13, 2018 10:51 am

MoonlightGraham wrote:
Tue Jun 12, 2018 6:42 pm
I think you might be right about the small company thing. I'm using their search function to find stocks available to purchase, since no one is getting back to me about a list. So far I have yet to find one that is listed I can buy that has an ER lower than 1%. If it is the case that I can't find anything lower than 1%, does this sway me towards converting this account? Or should I still stick with it?

I'm still searching. The retirement advisor for Ameriprise who handles our company is out of town until June 18. I have an email into their corporate contact to see if anyone will send a list. The 'HR' representative is actually my mother. She doesn't know anything. The company owner is my father. I'm pretty sure all of their accounts are through Ameriprise and they fully trust the advisor. It's a can of worms I can't get into with them, but they are unable to provide me any additional information at this time.

ALSO: I'll add this to the OP as well, but we could take the stock and pay off my husbands remaining student loans of 22K. Then take that 450$ a month and contribute it toward retirement. That would put another 5400$ a year toward retirement at least. That $450 right now is after tax income, if we were contributing pretax it would amount to more. In addition to upping our contribution based on his raise. Lets say that roughly $8340. That would move us to $13740 contributed yearly to retirement. And we would be bypassing any student loan interest that remains. Its not to the point of maxing out yet, but it gets us a good deal closer.

We could potentially pay off the house as well, that would free up another $300.00 a month we could add to retirement. However, I'll have to see if our crappy mortgage company would penalize us for paying off early. (a portion of the money allocated for the mortgage would remain to continue to pay taxes and insurance). * From what I can tell we can only be penalized for paying off early in the state of Michigan if we paid off in the first three years of the loan. Since we are at roughly 5.5 years, we should be exempt. But our mortgage has been sold 3 times in that time frame and our current mortgage company is terrible and fights me on everything. I send them a request for more information to see what they think, just to get the ball rolling.

This would allow us to be entirely debt free while almost maxing out retirement contributions. We would be roughly at $17,340. We could also lower our stock contribution by 1% and that would likely put us at max 401K contributions.

We will see how we are doing down the road budget wise when we have more children (we figured student loan payments would be done and that would free up money for additional costs related to older children), but hopefully cost of living raises should keep us on budget.
It looks like you should not make any additional contributions to her 401k, even if eligible.

Please keep working on finding out the funds offered in his 401k. Does his 401k plan offer other BlackRock LifePath Index (year) Institutional Shares, such as 2035 (LIJIX), ER 0.16%? What domestic stock, international stock, and bond funds with similar or lower expense ratios does his 401k plan offer?

To use the proceeds from the $50k company stock to be sold, please consider this order of priority:
1) increasing contributions to his 401k, to the annual maximum of $18.5k, using money from the stock sale to pay living expenses that would otherwise have been paid with his paycheck;
2) annual maximum contributions of $5.5k each, to two IRAs one for each of you; and
3) payoff of the low interest loans.

Here is a general account funding priority that usually works well for many people (when there is no high interest debt or HSA use):
1) Contribute to the work-based plans (401k, 403b, 457, TSP, etc.) enough to get the full employer match (the match is like free money, your best possible investment);
2) Contribute the maximum to an IRA, traditional or Roth, depending on eligibility and personal circumstances;
3) Contribute the remainder of the maximum employee contribution to the work-based accounts; and
4) Contribute to a taxable investing account.
Please see the wiki article "Prioritizing investments".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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