FIRE hopeful
Confused about dryer sheets
- Joined
- May 25, 2019
- Messages
- 6
Hello all I’m about to hit the $500k mark (at almost $400k now) in savings by the end of this year provided my business stays afloat as it has been doing all year (which based on projections, it seems it will). I have $215k in a brokerage account invested in a good mix of mutual funds and blue chip equity positions (AMZN, T, DIS, JPM, GOOG, APPL, UNH, AVGO, FB) which pay solid dividends. $25k in a SEP IRA, and the rest in cash or on the way in business transactions that have been signed and sealed just not yet delivered. I am debating whether or not to pay my house (townhome) off as I have a $165k mortgage left on it or to put more money into my portfolio. The plan with the house is to live in it perhaps without a mortgage until my wife and I have kids and at least start our family in it until they get a little older then get a new mortgage on a new, slightly bigger house with a yard and rent this one out to cover the new house’s mortgage we’re up about $50k on it right now. My wife is a school teacher with students loans that are on track to be forgiven through PSLF (we checked with an independent student loan lawyer to make sure because we can’t trust FedLoan to give us accurate information) in about 5 years. My business has a shelf life that I believe it will dry up in 1-2 years due to changes in legislation so the plan is to accumulate as much as possible now before switching into a job in the public sector to work the next ten years, give my investments time to mature, then get my loans discharged through PSLF as well. Is this a solid plan? Is $500k saved to accomplish my goals enough? Should I pay off my house? Please let me know what you all think