Hello! I am new to the FIRE/investing world and am looking for some advice. I am feeling a little over my head in terms of how to optimize, it feels like there are so many options and competing time horizons and goals.
Overview:
- Late 20s, Married no children, HHI is $180K with additional $25K bonus opportunity and $15K in stock vesting annually
- HCOL, but have family in area and no desire to move away in foreseeable future (15+ years)
- Emergency fund is 6 months
- Own townhome with $280K mortgage, worth ~$570K
- No debt beyond mortgage
Goals:
- Grow family in next year (take up to 3 months unpaid, daycare costs ~$1,500 monthly for our area)
- Move out of townhouse in next few years -- high HOA, noisy neighbors etc. (save additional for downpayment)
- Continue to donate $10K to $15K annually
- Anticipate car replacement in next few years - already saved $25K for this purchase
Current Investment / Savings Strategy:
- My 401(k): 12% contribution with 5% company match (below $18.5K limit)
- Husband 401(k): 10% contribution with ~3% company match (below $18.5K limit)
- ESPP: 10% contribution with 15% discount, sell immediately upon shares depositing
- Stock Grant: RSUs, sell periodically (I was mistaken about tax treatment for RSUs and held onto some for a long period unnecessarily. Planning to sell immediately on vest in future)
- Auto-Save $1,500 monthly from paychecks to savings accounts at bank
Investment / Savings Options:
- Roth 401(k) -- I currently only use the traditional 401(k) but am able to also contribute to a Roth 401(k) through work
- ESPP: Contribute 10% of salary for 15% discount, but could increase contributions to 15%
- Stock grant: Currently just transfer the cash back to savings, but could be investing instead? Or using stock for charitable donations?
- Roth / Traditional IRA: I was under the impression I could not contribute due to income, not seeing benefit for investing in T-IRA vs just maxing out 401(k)??
Welcome any and all thoughts on how to optimize. I'm thinking I should be doing some non-retirement investment to help with intermediate savings in addition to just hoarding cash.