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Discuss Latest WCI Blog Post: Maximizing the Benefits of the Lower-Paying Job

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  • Discuss Latest WCI Blog Post: Maximizing the Benefits of the Lower-Paying Job

    You might not earn what a doctor makes, but there are plenty of ways—some you might not expect—that your job brings value to your family.

    The post Maximizing the Benefits of the Lower-Paying Job appeared first on The White Coat Investor - Investing & Personal Finance for Doctors.

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    Helping those who wear the white coat get a fair shake on Wall Street since 2011

  • #2
    Great way to think about the issue. Obviously every situation is different. My wife left paid employment when our second was born. Went back when he got to middle school, but only part time. Poor benefits, but there was a 401k. So we basically put her whole salary into tax deferred to avoid my marginal tax rates.


    • #3
      one thing we've faced that the post doesn't mention explicitly is that having an extra spouse working means quite a bit of additional tax-deferred space opened up. The poster works for a private school but if she worked for a public one, she'd likely also have access to a governmental 457. With all of this, and also not taking on a lot of additional salary, this creates the circumstance where you can quite easily save 20-30% for retirement in tax-deferred space, making it challenging to save up in a taxable account. It's challenging just because 1) you've already saved more than enough, and 2) with a lower-paying job the bills do need to get paid so they may well not be able to afford to save in taxable space.

      Also, teachers normally get a match or a pension so that's even more tax-advantaged space going to retirement