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31 and would like to retire in 2035
Old 08-05-2013, 09:48 AM   #1
Confused about dryer sheets
Join Date: Aug 2013
Posts: 6
31 and would like to retire in 2035

I'm 31 and married. No kids yet but we have been discussing having a child in the next two years. We will plan on only having one unless its twins (runs in dw family) Our house is big enough to have a child or two.

Here is my current financial rundown

  • 194,000 left on mortgage at 3.875% (paying extra $215 in principal each month)

  • Individual Stock - $26k (mostly in VTI - Vanguard Index Fund add about 1500 per month)
  • Roth IRA - $20k (no longer qualify to contribute)
  • Rollover IRA - $85k (mostly in target date funds)
  • Roth 401k - $44k (mostly in Vanguard target date funds, max out each yr)
  • I-Bonds - $6k
  • Savings - $31k (savings interest rate basically 0%)
  • Total - $212k

Joining this forum to help make sure I am on the right track and for any advice as I move forward. Also, want to hold myself accountable as I move forward.
I will be coming into 50k due to the passing of a loved one and am trying to figure out the best thing to do with the $.

My thoughts were to spread it out around some of my active accounts.
10k - into mortgage
10k - into savings
10k - into home improvements (paint and a couple other things dw would like)
20k - into stock most likely an index fund

Is there anything I am overlooking or should be considering to do with my $.

Thanks guys!
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Old 08-05-2013, 10:16 AM   #2
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Join Date: Mar 2013
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Welcome to the forum Retire2035!

I'd say you are doing quite well for a 31 year old. You don't mention your income or expenses, or how much you are saving each month, but in general anything you can do to either increase your income or decrease expenses and put the savings into your investment bucket will help you to achieve financial independence sooner than later.

Your mortgage rate, at 3.875%, is pretty low, and I imagine you are getting some tax deductions from it as well, so there is no rush to pay it off. However, any money you put into savings will likely earn less than your current mortgage interest rate, so for me personally I'd probably put more into paying down the mortgage, as long as I have a reasonable 8 month emergency fund already available.

I'm assuming you have no debt outside of your mortgage. If you do, you may want to use the $50K to pay it off. I'm also assuming you are not paying for a financial advisor...which is a good thing, as it will just drag down your earnings. Investing primarily in index funds is the most practical approach to long term investing.

Feel free to ask any questions to the forum members as they come. There is a lot to learn from everyone here.
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Old 08-05-2013, 11:19 AM   #3
Confused about dryer sheets
Join Date: Aug 2013
Posts: 6
Thanks for the response.

Income is about 120K-30 after bonuses & overtime for me. 63k for the DW.

No Debts other than mortgage. Just paid off student loans.

~2000 month roth 401k plus 3% employer match
~$1500 per month in invidivual stock account.
~$2000 per month in savings Just reached our emergency fund goal of 30k but my wife would feel better with 40k so will keep going until at that number. Then will keep saving that and moving everything over into individual stock acct each month investing in index funds.

Another important thing for us is not giving up too much today for tomorrow. We try and go on 2-3 big trips a year. This year Vegas, Italy and the Atlantis. If that means I have to work a couple more years I can handle that.
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Old 08-05-2013, 01:20 PM   #4
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Join Date: Jun 2013
Location: Bonita (San Diego)
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Your numbers and income are similar to mine at 31 (now 36, still tracking about the same as you will be). Run FIRECalc with your information, and I bet you might be able to pull the trigger even before 2035, depending on how much you plan to spend.
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