Hello from the Burgh

[034runner]

From Pittsburgh here

Look forward to reading some interesting material on this forum

So.....some stats

Married, first kid due in about a month
Supply Chain Manager for a large CPG company
$130K combined per year with 12.5% bonus on $85k (+/- depending upon performance)
about 70K in 401k (only contributing co. match - 5%)
Contribute 15% monthly to a company GSPP
15k in a Roth IRA, 2k per year contribution
30k in ING savings, contribute about 1k per month
Wife has about 15k in retirement accounts (teacher)

We own a starter house. Owe about 60k, worth roughly double that. Two car payments adding to about 1k per month. We are hoping to purchase a new home next year (actually build a new home). Plan on paying off one of the cars in March. Pay of CC balances every month.


Open to any suggestions on how to improve my situation and looking to retire as early as possible.

HELLO

ETA: Turn 30 in a few weeks.

[73ss454]

Welcome Runner, your looking good but the car payments scare me. They do sell used cars you know.

[bssc]

Hi and welcome to the boards

Well, you might be right about the timing of building a new house but is it one that you plan on living in the rest of your life? Still, you are saving and paying off the CC bill so that is good.

[Nords]

Welcome to the board, 034runner.

Quote:

Originally Posted by 034runner From Pittsburgh here We are hoping to purchase a new home next year (actually build a new home).

We were in Murrysville & Jefferson Hills last July, and judging from the number of "FOR SALE" signs you may want to wait on that until the homebuilders get really really desperate...

[034runner]

Quote:

Originally Posted by bssc Hi and welcome to the boards Well, you might be right about the timing of building a new house but is it one that you plan on living in the rest of your life? Still, you are saving and paying off the CC bill so that is good.

Yep, this would be the last house we ever live in. Neither of us plan to (or want to) move from Pittsburgh unless absolutely necessary.

[034runner]

Quote:

Originally Posted by Nords Welcome to the board, 034runner. We were in Murrysville & Jefferson Hills last July, and judging from the number of "FOR SALE" signs you may want to wait on that until the homebuilders get really really desperate...

I've been telling the wife the same exact thing. She's afraid that if we don't do something now, that the price will be out of our range next year. I told her that it was unlikely at this point given the market conditions.

[034runner]

Quote:

Originally Posted by 73ss454 Welcome Runner, your looking good but the car payments scare me. They do sell used cars you know.

I've learned some very hard lessons about used cars and refuse to purchase another one. We did make sure we bought 2 reliable vehicles that had great resale values. So far we've done right on the reliable part.

[travelover]

Quote:

Originally Posted by 034runner I've learned some very hard lessons about used cars and refuse to purchase another one. We did make sure we bought 2 reliable vehicles that had great resale values. So far we've done right on the reliable part.

Welcome. You asked for advice so ....

You are paying a high price for the perceived improved reliability of a new car over a 1 or 2 year old. Calculate the depreciation in the first year (Kelly Blue Book) then project that figure (at 8 to 9%) for 30 years, based on lost investment opportunity. Over time it makes a huge difference.

Welcome.

[Coach]

Runner, welcome!

You've got a long time to go to retirement, so I think the most important thing is to "stay the course." Stay committed to saving and avoiding debt.

Your world is going to turn upside down in about a month. Congratulations!

Coach

[lightspeed]

Quote:

Originally Posted by 034runner We own a starter house. Owe about 60k, worth roughly double that.... We are hoping to purchase a new home next year (actually build a new home).

I don't know the Pittsburgh housing market, but just a thought- do you need the equity in your starter house to build your new home? Can you pay for the mortgage on the remaining 60K with rental income? Might be worthwhile longterm.

[bots2019]

Quote:

Originally Posted by 034runner From Pittsburgh here Look forward to reading some interesting material on this forum So.....some stats Married, first kid due in about a month Supply Chain Manager for a large CPG company $130K combined per year with 12.5% bonus on $85k (+/- depending upon performance) about 70K in 401k (only contributing co. match - 5%) Contribute 15% monthly to a company GSPP 15k in a Roth IRA, 2k per year contribution 30k in ING savings, contribute about 1k per month Wife has about 15k in retirement accounts (teacher) We own a starter house. Owe about 60k, worth roughly double that. Two car payments adding to about 1k per month. We are hoping to purchase a new home next year (actually build a new home). Plan on paying off one of the cars in March. Pay of CC balances every month. Open to any suggestions on how to improve my situation and looking to retire as early as possible. HELLO ETA: Turn 30 in a few weeks.

I'd try to pour more into the Roth - if your incomes continue to rise you may be ineligible in a handful of years (current phase out begins at $156k). It seems like these funds could easily be diverted from what you're adding to savings (1k/mo).

[034runner]

Quote:

Originally Posted by lightspeed I don't know the Pittsburgh housing market, but just a thought- do you need the equity in your starter house to build your new home? Can you pay for the mortgage on the remaining 60K with rental income? Might be worthwhile longterm.

Good question. We were planning on using the equity for the new home and had discussed about renting but the neighborhood we are currently in doesn't appeal to renters. The house next to us has been renting since we moved in 7 years ago and the longest anybody has stayed there is one year. It's housed some Katrina folk for a few months. And now it's been empty for almost a year.