My name is Ryan and I am a 24 year old trying to prioritize my savings/investments. I recently purchased a home (Jan 2014) and reside with two roommates and my girlfriend (crazy, I know). Here is my current situation:
Roth IRA (1 year):
Non Existent(Work does not provide this benefit)
123K owed on Mortgage at 4.625%
Current Home Value ~235-250K
I am currently earning 75K/year (pre-tax) working for a small, young software company with plenty of potential. I live with two roommates that contribute 450/ea + expenses per month. My current mortgage payment is $1500 (mortgage, property tax, insurance). On top of that, I currently pay $1000 to my principal balance each month. I have been saving $1000/mo into my short term savings and $460/mo to my Roth IRA investing in mutual funds.
I expect that my girlfriend and I will want to move to a new home in the next 1-2 years (taxes are $8200/yr
) leaving me with no additional rental income. I also intend to propose to her in the next year. With this, comes a ring, wedding, honeymoon, etc. (2-3 years). Unfortunately, she has been dreaming of a big, extravagant wedding since she was in grade school. I expect a 35K price tag
and a 5-8K ring. She just graduated with a finance degree, has a job making 40K, but has student loans of about 60K. She has full intentions of paying down her loans and saving for the wedding with every dollar she makes considering she has no other financial obligations (Lucky her!).
Some possibilities that have crosses my mind:
-Open additional retirement accounts
-Open a taxable account for more mid-term savings
-Discontinue paying additional principal to my mortgage and relocate those funds
-Boot the Girlfriend (JK!
A large part to moving in the next 1-2 years is to have access to the equity that I have in my home and re-evaluate where to place my funds. I anticipate having 180K once the home is sold including my savings. I am open minded with my next home purchase (Meaning, living below my means). I am contemplating only putting 10-20% down on a $150-200K dollar home. Another part of me tells me to put as much as possible down to avoid heavy interest in the future. I am struggling balancing this objective due to the the desire to retire somewhat early.
Any feedback or advice would be greatly appreciated.
Thank you in advance for taking the time to read my story!