New to this forum but have read up on a bunch of different topics here over the last few years that have given me some guidance (whether I follow them to the T or not is a different issue). Overall, I am looking for some general guidance of where I am and next steps. We can start with the numbers first (age = 42, not married but partner, no kids and don't expect to have them):
Overall compensation - greater than $600k/year
Rental property 1 - purchased for $240k, currently worth around $500k, rented out for ~$3k, owe ~$120k (i have a gain here of about $1200/month)
Rental property 2 - purchased for $520k, currently worth around $720k, rented out for ~$4k, owe - ~$360k (i am taking a loss here of about $150-200/month this year due to rental market decrease)
401k - ~$375k
roth - ~$66k
brokerage account - ~$1m (~60% of this is in current company rsu, i understand is not ideal but thats where i am today)
unvested rsu - not accounting for this right now but its an additional $1m or so today)
My 401k, roth, and remainder of brokerage account are all in VTI today. The rest, as you can see by the numbers are either company rsu or equity built into property values. I am closing on a $1.4m condo right now putting 20% down, with a 6.5% interest (whether smart or not I guess is a different discussion but I feel its the right time to do this for my partner and I). I max out my 401k, post-tax (mega backdoor) and backdoor contributions. Any residual, I have started to throw into my individual brokerage and just buying VTI. I am about 10 years away from my own personal target to evaluate whether I can take a step back from my current work or not but am not too concerned with that decision at the moment.
The guidance I am looking for is three fold. Firstly, with regards to my rental properties, at what point do folks just sell them off and do something else with that cash? Seems like I should heavily consider selling both of them given the current values versus purchase prices. Secondly, at what point do I start diversifying a bit more from VTI and head towards international plus bond perspective? I struggle with bonds today as I feel I have many years ahead of me still, but thats just a "feeling" versus logic and I have kept on the VTI stance just because quite honestly, its one of the recommendations from a three fund portfolio (clearly I am doing a "single fund" portfolio at the moment so not very clever of me). Since I max out my 401k, mega backdoor, and backdoor, i now sell all my rsu upon vest and leverage that for living expenses across the year (again, any residual after bills I throw to my brokerage account and buy VTI). Thirdly, once I am in my new mortgage situation, should I consider continuously paying it off as rsu's vest or only just paying down the principal to the point where I can leverage mortgage interest deductions (currently around $725k or so, anything above that you cant deduct interest at the same rate from my understanding)? I would appreciate any feedback!
Overall compensation - greater than $600k/year
Rental property 1 - purchased for $240k, currently worth around $500k, rented out for ~$3k, owe ~$120k (i have a gain here of about $1200/month)
Rental property 2 - purchased for $520k, currently worth around $720k, rented out for ~$4k, owe - ~$360k (i am taking a loss here of about $150-200/month this year due to rental market decrease)
401k - ~$375k
roth - ~$66k
brokerage account - ~$1m (~60% of this is in current company rsu, i understand is not ideal but thats where i am today)
unvested rsu - not accounting for this right now but its an additional $1m or so today)
My 401k, roth, and remainder of brokerage account are all in VTI today. The rest, as you can see by the numbers are either company rsu or equity built into property values. I am closing on a $1.4m condo right now putting 20% down, with a 6.5% interest (whether smart or not I guess is a different discussion but I feel its the right time to do this for my partner and I). I max out my 401k, post-tax (mega backdoor) and backdoor contributions. Any residual, I have started to throw into my individual brokerage and just buying VTI. I am about 10 years away from my own personal target to evaluate whether I can take a step back from my current work or not but am not too concerned with that decision at the moment.
The guidance I am looking for is three fold. Firstly, with regards to my rental properties, at what point do folks just sell them off and do something else with that cash? Seems like I should heavily consider selling both of them given the current values versus purchase prices. Secondly, at what point do I start diversifying a bit more from VTI and head towards international plus bond perspective? I struggle with bonds today as I feel I have many years ahead of me still, but thats just a "feeling" versus logic and I have kept on the VTI stance just because quite honestly, its one of the recommendations from a three fund portfolio (clearly I am doing a "single fund" portfolio at the moment so not very clever of me). Since I max out my 401k, mega backdoor, and backdoor, i now sell all my rsu upon vest and leverage that for living expenses across the year (again, any residual after bills I throw to my brokerage account and buy VTI). Thirdly, once I am in my new mortgage situation, should I consider continuously paying it off as rsu's vest or only just paying down the principal to the point where I can leverage mortgage interest deductions (currently around $725k or so, anything above that you cant deduct interest at the same rate from my understanding)? I would appreciate any feedback!
Statistics: Posted by sla07 — Thu Feb 01, 2024 10:00 pm — Replies 0 — Views 67