Hi Everyone,
I have always appreciated the knowledge and advice I have learned in this forums so I am looking for some guidance.
For reference, I had been tracking our progress in an earlier thread a few years ago
viewtopic.php?p=4470927#p4470927
Our situation has shifted a good bit since then (two kids, bigger house, a couple of job changes).
For many years, my wife and I worked diligently to pay off our mountain of student loans and set up a home for our growing family.
It seems we have finally turned a corner. With our student debt repaid, a big raise, and some other expenses going down, I anticipate our free cash flow will go up somewhere in the neighborhood of $5,000+ per month plus bonuses that were also used for this purpose (~$40k per year post tax). So about $100k in total freed up post tax annually.
We max our retirement accounts, put $600/mo into 529s, and have been slowly building up our brokerage accounts (maybe $20-$30k per year to date). If this number seems low, it’s because we had put our energy and excess money into debt repayment.
After being worth literally 0 when I started on here, we have amassed a NW of around $1.3M. 2023 HH income was around 540, but we should be in the ~$625 range for 2024 and $675 for 2025 with a full year of new earnings.
My question is how do we prioritize?
I have a couple of ideas of where to start but would appreciate some guidance:
-Backdoor roths (we never did this but plan to start this year)
-Up 529s to about $1000/mo (we estimate this is what we’ll need to fully cover in state tuition in full for two kids)
-Save to acquire another rental property (even though we are already pretty real estate heavy)
Should the rest just go into a brokerage account into index funds? Is it prudent to pay down our home (at 2.75% I don’t think so)? We have $60k in auto loans at 4% as well. Is there anything else big that I am missing? Emergency fund is taken care of.
As always, thank you for the help!
I have always appreciated the knowledge and advice I have learned in this forums so I am looking for some guidance.
For reference, I had been tracking our progress in an earlier thread a few years ago
viewtopic.php?p=4470927#p4470927
Our situation has shifted a good bit since then (two kids, bigger house, a couple of job changes).
For many years, my wife and I worked diligently to pay off our mountain of student loans and set up a home for our growing family.
It seems we have finally turned a corner. With our student debt repaid, a big raise, and some other expenses going down, I anticipate our free cash flow will go up somewhere in the neighborhood of $5,000+ per month plus bonuses that were also used for this purpose (~$40k per year post tax). So about $100k in total freed up post tax annually.
We max our retirement accounts, put $600/mo into 529s, and have been slowly building up our brokerage accounts (maybe $20-$30k per year to date). If this number seems low, it’s because we had put our energy and excess money into debt repayment.
After being worth literally 0 when I started on here, we have amassed a NW of around $1.3M. 2023 HH income was around 540, but we should be in the ~$625 range for 2024 and $675 for 2025 with a full year of new earnings.
My question is how do we prioritize?
I have a couple of ideas of where to start but would appreciate some guidance:
-Backdoor roths (we never did this but plan to start this year)
-Up 529s to about $1000/mo (we estimate this is what we’ll need to fully cover in state tuition in full for two kids)
-Save to acquire another rental property (even though we are already pretty real estate heavy)
Should the rest just go into a brokerage account into index funds? Is it prudent to pay down our home (at 2.75% I don’t think so)? We have $60k in auto loans at 4% as well. Is there anything else big that I am missing? Emergency fund is taken care of.
As always, thank you for the help!
Statistics: Posted by ajg189 — Sun Jun 23, 2024 8:47 pm — Replies 1 — Views 301