The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: whiteroom on May 22, 2017, 11:16:55 AM
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Mustachians, I need some help. Like many here over the years, I've finally realized I'm on the hot plate and need to be proactive about financial planning! Here's the summary, details are below, and thanks for your time and sage advice!
Summary
Married couple 32/31 yrs old, no kids at the moment but trying and planning on two, 30yr mortgage, used auto loan, student loans paid off, no credit card debt. Gross income this year will be ~$170k with both of us working full time. Eventually we would like to invest in a multifamily rental property for cashflow. Right now I figure it's probably best to fund the retirement accounts as much as possible while we're both working, then once she's no longer eligible for 401k contribution increase index fund contributions or save for the down payment on a rental property. At this point early retirement is not an absolute must but is becoming more and more appealing as the drudgery of working for someone else takes its' toll :)...
Based on our budget for this year it's certainly possible to:
max out both 401k's
max out two IRA's
contribute $300/mo to vanguard index fund
contribute $300/mo to individual stocks
invest $20k in cash currently sitting in the bank (this does not include emergency fund)
So, my questions are:
1) what type of IRA should we open for my wife?
2) is it worth investing so regularly in individual stocks or should we just pump everything into the vanguard index fund?
3) where should our $20k in cash be invested?
4) considering we may want to invest in a rental property, does that change any of the above?
5) should we also be packing money away in an HSA or would that money be better spent saving or in the market for the rental property?
Details
Income
me: $110k base, $5-10k bonus (earning potential in my current role for my local market is likely limited to $150k base plus equity enticements)
wife: $60k (earning potential in her current role is capped at $80k)
total: ~$170k+
401k's
me:
balance -- $48k
contribution -- $18k/yr, started maxing last year
employer contribution -- ~$5k/yr
wife:
balance -- $14k
contribution -- $3k/yr
employer contribution -- ~$2.5k/yr
IRA's
Roth (me):
balance -- $19k
contribution -- $5.5k/yr
wife:
none
Brokerage
vanguard index (VTSMX):
balance -- $6600
contribution -- $300/mo
individual stocks:
none
Loans
mortgage -- $316k @ 3.875% over 30 yrs (28 remaining)
auto -- $15k over 5yrs (3 remaining)