The MMM suggested order of investing can be found here:
https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153My question is about applying that order to a specific and somewhat atypical MMM financial situation.
Nutshell: We (DH (56) and self (48), with 2 kids, one of whom is still home) have been relatively low-earners our whole lives. DH is employed overseas and I am self-employed in the US. We have next-to-no retirement savings but are trying to rectify that assisted by some inheritance (~$150k) and a little further down the line the proceeds from sale of a property overseas. We have a small amount of debt <$9,000 at 0% and own our home outright.
I'm keen to follow jl collins' suggestions and move toward some Vanguard index funds - but am unsure WHERE in this lineup I should do that.
I would love to have some input on how to modify the following steps, given certain conditions (details provided in-line):
0. Establish an emergency fund to your satisfaction -DONE- - this is larger than some would advise because DH's contract ends in a little less than a year so we've saved a 1yr tight-budget buffer in case there's nothing for him right away.1. Contribute to your 401k up to any company match - neither of us are employed with a company that matches anything. Should we each be opening up self-funded 401ks?
2. Pay off any debts with interest rates ~5% or more above the current 10-year Treasury note yield. -N/A- 3. Max Health Savings Account (HSA) if eligible. -I just signed up for an HSA-approved plan (via coveredca, I get some assistance) - and it looks like I can do something with that via Fidelity.... where should I look to learn more, because I haven't any idea how to link things together so I actually put $ in an HSA?4. Max Traditional IRA or Roth (or backdoor Roth) based on income level -
I have a SEP-IRA, newly created in the last year that hasn't met the ... hmmm... cap? whatever amount it needs before it can be invested. I started it with Fidelity because of another IRA (form an old work benefit some years ago)... am willing to rollover to Vanguard but just haven't done it yet. DH has ~$15k in an old work thing too -- yes, I need to figure out what it is and what to do with it. --- at this point, the steps below seem much less relevant since I've not completed the above but please correct me if I'm wrong ---5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA deduction, swap #4 and #5)
6. Fund a mega backdoor Roth if applicable.
7. Pay off any debts with interest rates ~3% or more above the current 10-year Treasury note yield.
-N/A- 8. Invest in a taxable account and/or fund a 529 with any extra.
thanks for your help!