Hi All,
First post on the board but I'm trying to work my way into the FIRE community. I began investing when I was 24 (32 now) unfortunately I didn't know much about what I was doing other than placing the money in index funds - not how much to place, not how much I should save, etc.. Anyway, recently learning about FIRE I am systemically making changes to our budget in attempt to escape the world of work earlier than planned. I'll take any and all advice in pursuing FIRE. My current plan is to focus on paying down all debt (aside from mortgage, while I passively look into downsizing) but my particular question right now revolves around what I should do with an old whole life policy my parents invested in since I was a child. I'm attempting to figure out if I should: Cash it out, pursue a life settlement, continue to pay the $13/month. I've included basic numbers below as well as our current budget.
Gross Income: $81,000
Bank Acct: $1,234
Roth 403B: $44,429 (Three-Fund Portfolio)
Vodafone Stock 61 Shares @ 20.33 = $1240.13 (gifted from Grandma)
IPERS:$47,225 (Pension program for Iowa Public Employees)
----------------------
Student Loans: $11,634.63 @ 4.25%
Family Loan: $1,800 @ 0%
Van Loan:$6,522.19 @3.84%
Mortgage: $204,000 @ 4%
----------------------
Term Life Insurance until Age 55: 500k for $31.70 a month
Whole Life Insurance coverage of 46.2k with a cash value of $6,073 - $13/month (I calculated this "investment" making 1.4% annually)
----------
Monthly Budget
Mortgage 1766 (includes PMI, Homeowners Insurance, and Mortgage)
Internet 40
YouTubeTV 55
Life Insurance 58.43 (Includes both parents)
Auto Insurance 94.05
Van Loan 307.5
Iowa Student Loan 237.1
Child Health Ins. 20
Water (Every 3 months) 33
Trash (Every 3 months) 18
Pet Supplies 55
Planet Fitness 10
Car Gas 100
Electricity 75
Heat 100
Iowa Student Loan Extra Payment 162.9
Tithe or Charity 25
Young Livin' 115
Miscellaneous 90
Emergency Fund/Savings 45
Wolfe Loan 100
Groceries 523.88
Cell Phones 34
Paycheck 4656.58
403B Contribution 200
IPERS (My Cont.) 391.72
Bottom Line is about $600/month are being invested, About $50 going towards our savings acct, and the rest is going towards bills and paying down debt.
Thanks for all help!!
First post on the board but I'm trying to work my way into the FIRE community. I began investing when I was 24 (32 now) unfortunately I didn't know much about what I was doing other than placing the money in index funds - not how much to place, not how much I should save, etc.. Anyway, recently learning about FIRE I am systemically making changes to our budget in attempt to escape the world of work earlier than planned. I'll take any and all advice in pursuing FIRE. My current plan is to focus on paying down all debt (aside from mortgage, while I passively look into downsizing) but my particular question right now revolves around what I should do with an old whole life policy my parents invested in since I was a child. I'm attempting to figure out if I should: Cash it out, pursue a life settlement, continue to pay the $13/month. I've included basic numbers below as well as our current budget.
Gross Income: $81,000
Bank Acct: $1,234
Roth 403B: $44,429 (Three-Fund Portfolio)
Vodafone Stock 61 Shares @ 20.33 = $1240.13 (gifted from Grandma)
IPERS:$47,225 (Pension program for Iowa Public Employees)
----------------------
Student Loans: $11,634.63 @ 4.25%
Family Loan: $1,800 @ 0%
Van Loan:$6,522.19 @3.84%
Mortgage: $204,000 @ 4%
----------------------
Term Life Insurance until Age 55: 500k for $31.70 a month
Whole Life Insurance coverage of 46.2k with a cash value of $6,073 - $13/month (I calculated this "investment" making 1.4% annually)
----------
Monthly Budget
Mortgage 1766 (includes PMI, Homeowners Insurance, and Mortgage)
Internet 40
YouTubeTV 55
Life Insurance 58.43 (Includes both parents)
Auto Insurance 94.05
Van Loan 307.5
Iowa Student Loan 237.1
Child Health Ins. 20
Water (Every 3 months) 33
Trash (Every 3 months) 18
Pet Supplies 55
Planet Fitness 10
Car Gas 100
Electricity 75
Heat 100
Iowa Student Loan Extra Payment 162.9
Tithe or Charity 25
Young Livin' 115
Miscellaneous 90
Emergency Fund/Savings 45
Wolfe Loan 100
Groceries 523.88
Cell Phones 34
Paycheck 4656.58
403B Contribution 200
IPERS (My Cont.) 391.72
Bottom Line is about $600/month are being invested, About $50 going towards our savings acct, and the rest is going towards bills and paying down debt.
Thanks for all help!!