I just got a new job, starting in February, and I want to be prepared! Let me know what we could be doing better.
Life Situation:
IRS filing status - Married, filing jointly
Number & ages of dependents - N/A
Anything else - I am 31, husband is 33. No plans for kids for another 2-5 years (possibly never - still figuring it out!)
Gross Salary/Wages:
My previous annual salary was $59,000 and is jumping to $93,000 in February.
Husband's annual salary is $36,000 with an additional $10,000-$30,000 in freelance income depending on the year. We used freelance funds to pay off debts and now as "bonus" to put in savings towards a house in our area ($350K is standard for a house.)
Adjusted Gross Income & Taxes are TBD with new income. Generally, it was roughly $5432/month take home pay for us on old salary.
Current monthly expenses:
Rent - $1350
Car - paid off, but we want to trade it in.
Fixed expenses (internet, insurance, utilities, etc.) - $374
Monthly spending (groceries, shopping, travel, entertainment, etc.) - $1600
Gas - usually $100/month, but it varies. We only really use the car to visit distant family and for grocery runs.
Assets:
Car: $16,000 when purchased 8 years ago. Worth $4k-$7k now.
Husband's Roth IRA: $17,029
TIAA 403(b): $7,783
TIAA Roth including employer 5% match: $45,732
TIAA Roth: $8,107
Betterment: $3,545
Savings: $56,630 (roughly 40K of which is earmarked for house downpayment)
Debts:
None - all recently paid off! :-)
Specific Question(s):
What could we be doing better? And given my jump in salary, other than retirement maxing, should surplus funds go towards my downpayment or into Betterment?
Notes:
- We plan to max out our retirement accounts for the first time ever in 2018.
- Would like to sell our only car, a 2010 Nissan Versa with 60K miles, to get a used Prius for both the gas savings and environmental reasons.
- My commuting costs are taken out of my paycheck pretax and will be the same for the new job, $85/month for my train pass.
- I am anxious to put money earmarked for a house into an investment fund. Our accounts with Ally are at 1.25% interest. Thoughts welcome.
- We are not going full FI, but would like something closer to "early" retirement in our late 50s or early 60s.
I can update this post with any info I missed... this is my first go around and things are in flux for another month or two until I am set up at the new job!