Hi Bogleheads,
I have enjoyed the wiki, forum posts, and book recommendations. Thank you for the inspiration. My wife and I want to buy a house in the next year or two on 5 to 40 acres in Larimer county, CO. Here's our approximate ages and finances if you have some advice on one of our questions at the end of this post.
Emergency funds: 25k - SPAXX - Fidelity® Government Money Market Fund
Debt: $0
Credit Score: 810
HH income: 135k
Tax Filing Status: MFJ. 90% of HH Income comes from one of us. We assume MFJ is optimal since we have no large itemizations for now.
Taxes: 22%ish? Federal 4.4% Colorado State
Ages: 35/35
Tax advantaged accounts:
Roth IRAs: $500k - 100% FZROX Fidelity ZERO® Total Market Index Fund 0% ER
Traditional IRAs: $200k - 100% FZROX Fidelity ZERO® Total Market Index Fund 0% ER
Megacorporation 401k: $50k - 100% VFFSX Vanguard 500 Index Fund .03% ER
- We are going to contribute 6% of salary to maximize the match, but we are not putting anything else toward retirement until home is figured out.
Investment plan: Right before the end of the year, we plan on allocating 10% to bonds and increase that allocation by 10% every five years on the same day. We wish to retire in a similar lifestyle as we do now which isn't anything extravagant.
HSA: 80k
- 10k - SPAXX - Fidelity® Government Money Market Fund
- 70k - FZROX Fidelity ZERO® Total Market Index Fund 0% ER
HDHP has 4k family deductible, 10k out of pocket max. Generally healthy family, but as more contributions come in, the % allocation of SPAXX will increase.
Taxable accounts that comprise our future down payment:
20k I-Bonds, we plan on moving these to Fidelity in a few months for simplicity. (Treasury Direct)
+ 30k BOXX - Alpha Architect 1-3 Month Box ETF (Fidelity)
+ 25k CDs - Various at 5.6%+- , but all expire within 2-5 months (Fidelity)
that brings the total to 75k down payment dollars.
Major expenses are rent+utilities which totals $2700 per month. We have kid(s). Although we have lived in five different home rentals the past 8 years, we are certain we wish to stay in this area. We are also set on buying (1-2 years out), even if staying in our rental mathematically is better.
Would you have comments on any of the following? I certainly don't expect an answer on everything; this is a lot...
- Is there anything that sticks out as strange with how we are planning our savings?
- Could we afford 750k in house or would that be house poor territory?
- Should we explore the idea of a 401k home loan as a down payment supplement? ($0 quarterly maintenance fee, $50 origination fee, 9.5% self interest rate)
- Are there any 1st time home buyer programs we should take advantage of?
- Should we consider buying land/building or doing a used home?
- Are there any unknowns we are missing?
- 30 or 15 year mortgage?
Thanks
I have enjoyed the wiki, forum posts, and book recommendations. Thank you for the inspiration. My wife and I want to buy a house in the next year or two on 5 to 40 acres in Larimer county, CO. Here's our approximate ages and finances if you have some advice on one of our questions at the end of this post.
Emergency funds: 25k - SPAXX - Fidelity® Government Money Market Fund
Debt: $0
Credit Score: 810
HH income: 135k
Tax Filing Status: MFJ. 90% of HH Income comes from one of us. We assume MFJ is optimal since we have no large itemizations for now.
Taxes: 22%ish? Federal 4.4% Colorado State
Ages: 35/35
Tax advantaged accounts:
Roth IRAs: $500k - 100% FZROX Fidelity ZERO® Total Market Index Fund 0% ER
Traditional IRAs: $200k - 100% FZROX Fidelity ZERO® Total Market Index Fund 0% ER
Megacorporation 401k: $50k - 100% VFFSX Vanguard 500 Index Fund .03% ER
- We are going to contribute 6% of salary to maximize the match, but we are not putting anything else toward retirement until home is figured out.
Investment plan: Right before the end of the year, we plan on allocating 10% to bonds and increase that allocation by 10% every five years on the same day. We wish to retire in a similar lifestyle as we do now which isn't anything extravagant.
HSA: 80k
- 10k - SPAXX - Fidelity® Government Money Market Fund
- 70k - FZROX Fidelity ZERO® Total Market Index Fund 0% ER
HDHP has 4k family deductible, 10k out of pocket max. Generally healthy family, but as more contributions come in, the % allocation of SPAXX will increase.
Taxable accounts that comprise our future down payment:
20k I-Bonds, we plan on moving these to Fidelity in a few months for simplicity. (Treasury Direct)
+ 30k BOXX - Alpha Architect 1-3 Month Box ETF (Fidelity)
+ 25k CDs - Various at 5.6%+- , but all expire within 2-5 months (Fidelity)
that brings the total to 75k down payment dollars.
Major expenses are rent+utilities which totals $2700 per month. We have kid(s). Although we have lived in five different home rentals the past 8 years, we are certain we wish to stay in this area. We are also set on buying (1-2 years out), even if staying in our rental mathematically is better.
Would you have comments on any of the following? I certainly don't expect an answer on everything; this is a lot...
- Is there anything that sticks out as strange with how we are planning our savings?
- Could we afford 750k in house or would that be house poor territory?
- Should we explore the idea of a 401k home loan as a down payment supplement? ($0 quarterly maintenance fee, $50 origination fee, 9.5% self interest rate)
- Are there any 1st time home buyer programs we should take advantage of?
- Should we consider buying land/building or doing a used home?
- Are there any unknowns we are missing?
- 30 or 15 year mortgage?
Thanks
Statistics: Posted by Northern Colorado — Tue Jun 25, 2024 5:22 pm — Replies 4 — Views 334