Hello all, this is my first post (sorry so long). I am a 30 y/o nurse of 7 years who has just recently resigned to become a domestic engineer. My husband is a 34 y/o chemical engineer supervisor. We have our eyes on the prize for early retirement. Goal retirement date is 2034 to seal in a pension from my husbands job. Goal financial indepence date 2029. He works for a major oil company and started out as a young intern 19yo in college(all years count toward pension!). Our current NW is about 770k including company stock, Roth IRA's, Traditional IRAs, 401k, kids 529s, equity in home and 2 vehicles. We currently max out all retirement options 401k (company contributes 10% of salary automatically), roth IRAs, and contribute to other retirement vehicles as well as to our kids college funds. Our plan is to be completely debt free by the end of 2019 by paying off our home aggressively as it is our last debt. We have started doing some work on it over the last couple of years and this year an additional expenses of aircon replacement on top of planned reno projects. I really want to buy land and build a home we will be in long term. We bought our cookie cutter home 10yrs ago. I am really torn at this point because I know once the house is paid off we will be swiftly on our way to our financial independence goal date. We may have about 75k equity with 120k mortgage left- It should be more but the actual importance of debt freedom in reaching our other goals took a little while to sink in. We had 3 debt snowball cycles, on baby step 6 now! I have made many list and have been reading about your home being one of the major expenses in retirement. I do not see future family Christmas partys here, or grandchildren running free here.
opt1: We could pay this home off by 2019 and save for the "forever home" 3 more years of saving 2023. Then use this home as a rental to generate income to quickly pay off the forever home. (This is my current inclination because at the end of the long process we would have the "forever home" and another income generating asset. Hubby is not keen on becoming a landlord.
opt2: Sell this home and use the equity as down payment on the forever home.(This may be what my broke friend next door would do.)
opt3: Payoff current home then bank all the future money into savings for future.-(This is what the millionaire next door would do.)
Option 4: Pay off current home save for "forever home" sell current home add to savings and buy forever home outright.
We project a savings rate of about 45k/yr after this home is paid off. I need some seasoned advice on this. TIA to all who respond.
opt1: We could pay this home off by 2019 and save for the "forever home" 3 more years of saving 2023. Then use this home as a rental to generate income to quickly pay off the forever home. (This is my current inclination because at the end of the long process we would have the "forever home" and another income generating asset. Hubby is not keen on becoming a landlord.
opt2: Sell this home and use the equity as down payment on the forever home.(This may be what my broke friend next door would do.)
opt3: Payoff current home then bank all the future money into savings for future.-(This is what the millionaire next door would do.)
Option 4: Pay off current home save for "forever home" sell current home add to savings and buy forever home outright.
We project a savings rate of about 45k/yr after this home is paid off. I need some seasoned advice on this. TIA to all who respond.
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