DavidFarrior
Confused about dryer sheets
- Joined
- Apr 12, 2008
- Messages
- 2
I am almost 30 and could use some help in coming up with a long term plan that helps me meet my goals. I thought I would introduce myself in this forum and if anyone has any answers or input as a result, great. Otherwise, I will just have to break up my many questions into many posts as I try to figure things out.
First, a little about me:
As I mentioned, I am 29 years old and my wife is also 29. I have 4 kids ages 6 down to 6 months old. My wife stays at home raising our children.
Our financial situation is OK. We have no debt except our house (which is plenty). We have about $90k left on that scheduled to pay it off in 16 years or so.
We currently have about $35k in the company 401k plan, $25k in savings, and maybe $50k in equity in our house. I maxed out my Roth plan this year (2007) which is the first year I have done so.
I currently make about $50k a year and we don't have much left over after expenses. (it's hard making it on a single income these days) The $25k in savings is due to side jobs that I have done over the past two years. If it was not for that, we would pretty much only have what was in the 401k plan.
My first short term goal is to be able to send my kids to a private high school. So, that will be about 20k per child for the 4 years of school although they do offer some breaks if you have multiple children in school.
The next goal would be to assist with (not completely pay for) their college education.
Finally, I would like to retire around age 50 or 55. More importantly, I would like to have my house paid off much sooner than the 16 years we have left. Once that is done, I feel as though I can start saving more aggressively for the other goals, as well have a weight lifted off my shoulders. Nothing like the pressure of a monthly mortgage payment that has to be made considering today's job market.
So, my main questions so far are as follows:
1) What vehicle should I use to save for their high school education? Just regular savings or is there a tax advantaged method?
2) Considering I have other fairly short term goals, would it be wise to pay off the mortgage in 5 years or so when I should in theory, have the money to do so? Or, take most of that extra money and sock it away for high school/ college.
3) I currently contribute 13% to 401k. Is that wise or only do up to what is matched by employer? The difference in take home seems small which is why I have left it at such a big percentage.
4) I would like to start a automatic investment plan but need advice. I have my Roth at Vanguard so opening another account there would be OK with me. Which funds though?
5) I am a resident of WI. Which 529 plan should I use for saving for college? I do realize I do not have to take part in the WI plan just because I am a resident.
I know I could work my rear off and make quite a bit of money with my side jobs. (isn't America great) However, my time with my family is a higher priority than money or early retirement. So, I am trying to figure out a nice blend of planning for the future, while enjoying the present.
Sorry if this was too long or too many questions for the introduction part of the forums. I just wanted to get started somewhere.
Thanks.
First, a little about me:
As I mentioned, I am 29 years old and my wife is also 29. I have 4 kids ages 6 down to 6 months old. My wife stays at home raising our children.
Our financial situation is OK. We have no debt except our house (which is plenty). We have about $90k left on that scheduled to pay it off in 16 years or so.
We currently have about $35k in the company 401k plan, $25k in savings, and maybe $50k in equity in our house. I maxed out my Roth plan this year (2007) which is the first year I have done so.
I currently make about $50k a year and we don't have much left over after expenses. (it's hard making it on a single income these days) The $25k in savings is due to side jobs that I have done over the past two years. If it was not for that, we would pretty much only have what was in the 401k plan.
My first short term goal is to be able to send my kids to a private high school. So, that will be about 20k per child for the 4 years of school although they do offer some breaks if you have multiple children in school.
The next goal would be to assist with (not completely pay for) their college education.
Finally, I would like to retire around age 50 or 55. More importantly, I would like to have my house paid off much sooner than the 16 years we have left. Once that is done, I feel as though I can start saving more aggressively for the other goals, as well have a weight lifted off my shoulders. Nothing like the pressure of a monthly mortgage payment that has to be made considering today's job market.
So, my main questions so far are as follows:
1) What vehicle should I use to save for their high school education? Just regular savings or is there a tax advantaged method?
2) Considering I have other fairly short term goals, would it be wise to pay off the mortgage in 5 years or so when I should in theory, have the money to do so? Or, take most of that extra money and sock it away for high school/ college.
3) I currently contribute 13% to 401k. Is that wise or only do up to what is matched by employer? The difference in take home seems small which is why I have left it at such a big percentage.
4) I would like to start a automatic investment plan but need advice. I have my Roth at Vanguard so opening another account there would be OK with me. Which funds though?
5) I am a resident of WI. Which 529 plan should I use for saving for college? I do realize I do not have to take part in the WI plan just because I am a resident.
I know I could work my rear off and make quite a bit of money with my side jobs. (isn't America great) However, my time with my family is a higher priority than money or early retirement. So, I am trying to figure out a nice blend of planning for the future, while enjoying the present.
Sorry if this was too long or too many questions for the introduction part of the forums. I just wanted to get started somewhere.
Thanks.