brau0300
Confused about dryer sheets
Hi,
My name is Marcus and I am a 24-year-old trying to determine an ideal investment/savings strategy. I recently finished paying for my wedding and now have more flexibility to save. Here is my current situation
Savings:
7.5k emergency fund (around 4 months), planning to gradually increase this to a full 6 months
Roth IRA:
8k current value
Maxing annual contributions
401k:
18k current value
Currently contributing 6% of pre-tax income, employer matches 1:1 up to 6%
Debt:
165k owed on a Mortgage at 4.75%
Current Home Value ~170k
At this point, I'm leaning toward having my spouse open a Roth IRA and max funding it as well (we will be filing jointly). Other possibilities that have crossed my mind include:
-Paying down the mortgage quicker
-Increasing 401k contribution
-Opening a taxable account for more mid-term savings
I expect that we will probably want to move to a house (we live in a condo) in the next five years at which point we will need a down payment. I'm struggling to balance this objective with the desire to place ourselves in a strong position for early retirement. I'm thinking that if I pursue the second Roth IRA option, I will likely put any additional savings for the mid-term in some sort of intermediate term tax-exempt bond fund (other suggestions?). I would appreciate any advice that anyone can offer as far as how to best allocate money. I have around an additional $1000/month (after taxes) available for savings at the moment.
Thanks in advance!
My name is Marcus and I am a 24-year-old trying to determine an ideal investment/savings strategy. I recently finished paying for my wedding and now have more flexibility to save. Here is my current situation
Savings:
7.5k emergency fund (around 4 months), planning to gradually increase this to a full 6 months
Roth IRA:
8k current value
Maxing annual contributions
401k:
18k current value
Currently contributing 6% of pre-tax income, employer matches 1:1 up to 6%
Debt:
165k owed on a Mortgage at 4.75%
Current Home Value ~170k
At this point, I'm leaning toward having my spouse open a Roth IRA and max funding it as well (we will be filing jointly). Other possibilities that have crossed my mind include:
-Paying down the mortgage quicker
-Increasing 401k contribution
-Opening a taxable account for more mid-term savings
I expect that we will probably want to move to a house (we live in a condo) in the next five years at which point we will need a down payment. I'm struggling to balance this objective with the desire to place ourselves in a strong position for early retirement. I'm thinking that if I pursue the second Roth IRA option, I will likely put any additional savings for the mid-term in some sort of intermediate term tax-exempt bond fund (other suggestions?). I would appreciate any advice that anyone can offer as far as how to best allocate money. I have around an additional $1000/month (after taxes) available for savings at the moment.
Thanks in advance!