Sonnenberg
Confused about dryer sheets
- Joined
- Jul 29, 2016
- Messages
- 1
First of all I want to thank the forum for all the information, long time lurker, learnt a lot from the forums.
Background
Age 38, Wife 34, Kid 1 6 yrs, Kid 2 on the way in september 2016.
My current assets:
Cash: 175k
Retirement account: 800k
Investment account: 820k
Kid 1: 529 Pre-paid account: 42k (Balance of 24k)
Kid 1: 529 investment account: 2k (hoping to have 50k in the account when the kid goes to college in 2027
Home equity: about 200k
Total: 1.8 M (not counting home equity and 529 plan)
Loans
Wife Student Loan: 7k remaining at 1.29%. Loan ends 2020
Car Loan: 15k at 0.99%
TSP Loan (His): 45k at 2.235%
401k Loan: 45k at 2.5%
Now the question
We took 401k and TSP Loan when we bought the house three years ago in anticipation of remodelling house (about 60k). We couldnt start the project due to some reason or the other and finally are now ready. Once we do the remodelling, we will have 115k left in cash and I am trying to figure out what should I do next. We will need about 60k in Emergency fund. That would leave us with 55k. Below are the two options I am thinking about
1. Pay off 24k from kid1's 529 pre-paid and close the account and use remaining 30k to fund Kid 2's prepaid. VA Prepaid account for 2017 would be 70k
2. Pay off 401k Loan and part of TSP Loan
Background
Age 38, Wife 34, Kid 1 6 yrs, Kid 2 on the way in september 2016.
My current assets:
Cash: 175k
Retirement account: 800k
Investment account: 820k
Kid 1: 529 Pre-paid account: 42k (Balance of 24k)
Kid 1: 529 investment account: 2k (hoping to have 50k in the account when the kid goes to college in 2027
Home equity: about 200k
Total: 1.8 M (not counting home equity and 529 plan)
Loans
Wife Student Loan: 7k remaining at 1.29%. Loan ends 2020
Car Loan: 15k at 0.99%
TSP Loan (His): 45k at 2.235%
401k Loan: 45k at 2.5%
Now the question
We took 401k and TSP Loan when we bought the house three years ago in anticipation of remodelling house (about 60k). We couldnt start the project due to some reason or the other and finally are now ready. Once we do the remodelling, we will have 115k left in cash and I am trying to figure out what should I do next. We will need about 60k in Emergency fund. That would leave us with 55k. Below are the two options I am thinking about
1. Pay off 24k from kid1's 529 pre-paid and close the account and use remaining 30k to fund Kid 2's prepaid. VA Prepaid account for 2017 would be 70k
2. Pay off 401k Loan and part of TSP Loan