Life situation: Married filing jointly Me 47 Wife 55 . 3 adult kids, 3 grand kids ages 13, 6, & 4
Gross salary: 160K for me and 54K for wife
Pre-tax deduction: My 401k $800/check semi-monthly
My Dental/vis $32 check semi-monthly
Wife Per check paid bi-weekly
Wife 403b $650
Wife H.S.A. $234
Wife Medical - $134
Wife Pension - $220 wife started teacher job later in life in 3.5 years eligible for 10 year pension 10% of 62K for life and medical - in 13.5 years eligible for 20 year pension 40% of 85K for life
Other income: Dividends approx. $1k a year reinvested
Total income after taxes/deductions : $9388 / mo I may be put on yearly bonus plan this year at 15% ($ 24K) of pay fingers crossed!
Monthly expenses:
Mortgage : $876 P/I 223 months left $450 T/I
Utilities (includes cell phones $45 each, internet and cable $160.00, water and sewer $100, electric/gas heat $200): $550/month
Groceries: $700
Restaurants/Takeout/ Entertainment: $800/mo
Gas: $250/mo
Gym: $21/ mo
Credit cards: $0
Cars: 2018 Honda Accord Car payment: $462/month (42 months left @ 2.5% ) car accident totaled my 2001 Honda Civic with 275k miles on it July 2018 hence the new car purchase
2013 Subaru Outback payment $387/month (29 months left @ 1.9 %)
All our and kids student loans paid off
Life and disability insurance: $64/ semi-monthly check thru work
Home improvement loan, new roof, kitchen upgrade (added dishwasher = happiest wife ever) 444 / month at 0% interest 42 months left
Insurance Car, Life, RV, $1 mill Umbrella - $278/month
RV Seasonal Site / Property Tax on 2 cars and RV - $350/month
Roth IRA Contributions $1083/ mo
Assets: as of 12/31/2019
$ 254,800 House&RV&Cars
$ 595,114 My 401K
$ 65,474 Wife 403B
$ 109,985 My Roth IRA
$ 229,948 Wife Roth IRA
$ 265,729 Brokerage
$ 153,206 My cash balance Pension
$ 54,632
24 k Savings/ 22K H.S.A./2k traditional IRA/5 k Wife Pension/ 1k Coinbase
$ 14,690 CHET for grandkids
$ 7,116 My 2019 Fundrise Roth IRA
$ 1,750,424 Subtotal
Liabilities as of 12/31/2019 :
$ 128,046 Mortgage $876 @ 4.875% - 223 months left
$ 17,100 Roof&Home Improvement loan $444 0% - 42 months left
$ 11,593 Subaru $387 @ 1.9% - 29 months left
$ 19,266 Honda $462 @ 2.5% - 42 months left
$ 176,005 Subtotal
$ 1,574,419 Net Worth
Recently, last 3 years or so after learning of FIRE and readjusting our thinking we have really gotten rid of a lot of debt - paid off all Student loans and RV. We have the RV parked full time at a seasonal site in Saratoga Springs which we love to glamp in all spring, summer and fall and also I work from home there occasionally during the summer while wife is off from school and take two three weeks vacation there.
Plan for future:
As more debt gets paid off plow more into savings
Currently yearly savings with company matches ($2k H.S.A & $17K my job) 2020 - $75k
2021 - $84k max wife 403b 26k a year
2022 - $93k max my 401k add 6.5k - 26k year & add $1k Roth
Depending if I get put on yearly bonus plan or not will add more to taxable accounts.
Starting to mull over when to retire was planning on 13.5 years.
I just recently (this month) sold a property to my sister that I owned and she lived there and I was paying $400/ month out of our pockets on top of her payment to help her get back on her feet (she was recently divorced/ relocated back to area and got her son my 6 year old nephew to attend one of the best school public schools in the state ). So I now will have an extra $400/month to utilize.
My question:
What mortgage should I refinance into?
I am going to refinance the mortgage now that I have sold the other property to take advantage of lower rates.
Was going to refi the mortgage take a 10 year mortgage @ 3.125% utilizing the extra $400/mo and for a payment of approx. $1270/month and knock this principal down aggressively. Now I am really torn between taking a 30 year mortgage because rates are so damn low and thinking we could maximize all pretax retirement accounts this year 2020 if we go with 30 year mortgage @ 3.875% $611/mo. Or maybe meet in the middle with a 15 year mortgage @ 3.5 $929/mo. Really undecided but want to either lower months to pay off or maximize savings?
Any suggestions would be very helpful?
Regards,
Sean
