Hi, I'm 31 and married with no kids and no mortgage (or lease... or permanent residence). My SO and I have just finished about 18 months of travel and have built our own business (llc) while on the road. Now we're back in the states for a bit and have time for some more forward thinking scheming. Financial planning time!
We don't have any revolving debt and have significant potential investment capital due to the fact that we've experienced reasonable business growth in our first year (~60k net this year), but are still only taking sustenance level disbursements (~$800/mo each) and this has left us with much more in our business account than we need to cover the costs of operating the business. We also have ~30k we originally set aside for a mortgage or other major investment / opportunity. Ideally if we went the home ownership route we'd go through a local CU that offers no PMI even with 0% down though and would be willing to pay a slightly higher rate to keep those funds freed up. Prices of properties in the area we'd be looking run from 110-140k (2 bedroom townhouse) - 200-270k (1800 sq ft 3 bedroom).
I'm still in the research stages here and hopefully I've shared enough info above to give reasonable insight into our situation. My broad strokes thinking for the 2015 tax year is to max our current i401k's with 18k each. This would get us under 200% FPL and allow the max retroactive ACA benefit and full 50% saver's credit. Then we'll just pile any other savings we have into Index Fund ETFs with Vanguard.
Are these reasonable first steps for someone just starting down the FIRE road?
We don't have any revolving debt and have significant potential investment capital due to the fact that we've experienced reasonable business growth in our first year (~60k net this year), but are still only taking sustenance level disbursements (~$800/mo each) and this has left us with much more in our business account than we need to cover the costs of operating the business. We also have ~30k we originally set aside for a mortgage or other major investment / opportunity. Ideally if we went the home ownership route we'd go through a local CU that offers no PMI even with 0% down though and would be willing to pay a slightly higher rate to keep those funds freed up. Prices of properties in the area we'd be looking run from 110-140k (2 bedroom townhouse) - 200-270k (1800 sq ft 3 bedroom).
I'm still in the research stages here and hopefully I've shared enough info above to give reasonable insight into our situation. My broad strokes thinking for the 2015 tax year is to max our current i401k's with 18k each. This would get us under 200% FPL and allow the max retroactive ACA benefit and full 50% saver's credit. Then we'll just pile any other savings we have into Index Fund ETFs with Vanguard.
Are these reasonable first steps for someone just starting down the FIRE road?
