liquidcheese
Confused about dryer sheets
- Joined
- Jul 20, 2017
- Messages
- 2
Good evening! Been lurking for the past few months and have learned a great deal within the forums thanks to you all.
I am 32, married to my DW who is a SAHM to our 2 darling children. Would love to be done with w*rk by 45. Within the past 5 years I have gone from an annual salary just over $30k to $82k now. I strive to max out my 401k and IRA every year, my wife has no desire for a spousal IRA she would rather invest in a taxable account. One of the main things I am currently looking at is the ratio of savings vs paying off the mortgage and car debt. We still live in the same house we purchased when I made $30k a year, which is great because our property taxes are only $700 a year. However, 9 years ago it also came with a 5.5% interest rate . Currently, we owe just over $53k and it is valued at $62k and somewhere around 20 years left on the mortgage. I have looked at refinancing on a few occasions, however with such a small mortgage I haven't had much luck. My monthly house payment with taxes and insurance is $456 a month, which lets us travel and live like kings in rural town USA. We also have a car with $18k on the loan at 1.99%. Since the interest is low, I had no intentions of paying off early. No other debts.
As for assets, we currently have:
401k - $183,000 (60% large US equity, 25% international equity, 15% small/mid US equity)
traditional IRA - $19,000 VTSAX
taxable account - $11,000 VTSAX
Cash - $6,700
HSA - $2,000 money market fund
Kids 529 plans - $9000 combined
Does it make more sense to continue to plow money into investments, or should I be aggressively paying the mortgage off at the current rate, losing time in the market until the mortgage is wiped out? Thanks for listening
I am 32, married to my DW who is a SAHM to our 2 darling children. Would love to be done with w*rk by 45. Within the past 5 years I have gone from an annual salary just over $30k to $82k now. I strive to max out my 401k and IRA every year, my wife has no desire for a spousal IRA she would rather invest in a taxable account. One of the main things I am currently looking at is the ratio of savings vs paying off the mortgage and car debt. We still live in the same house we purchased when I made $30k a year, which is great because our property taxes are only $700 a year. However, 9 years ago it also came with a 5.5% interest rate . Currently, we owe just over $53k and it is valued at $62k and somewhere around 20 years left on the mortgage. I have looked at refinancing on a few occasions, however with such a small mortgage I haven't had much luck. My monthly house payment with taxes and insurance is $456 a month, which lets us travel and live like kings in rural town USA. We also have a car with $18k on the loan at 1.99%. Since the interest is low, I had no intentions of paying off early. No other debts.
As for assets, we currently have:
401k - $183,000 (60% large US equity, 25% international equity, 15% small/mid US equity)
traditional IRA - $19,000 VTSAX
taxable account - $11,000 VTSAX
Cash - $6,700
HSA - $2,000 money market fund
Kids 529 plans - $9000 combined
Does it make more sense to continue to plow money into investments, or should I be aggressively paying the mortgage off at the current rate, losing time in the market until the mortgage is wiped out? Thanks for listening