... We will have $125k at the end of this month. If you were married, 33 with their first kid on the way, already maxing out your Roth’s and work 401ks where would you put this money? We already have an emergency fund ...
Do you have any doubt that the emergency fund will cover unexpected expenses from new parents? I'd increase that significantly, to both put your mind at ease and cover expenses you hadn't considered. You can dial it back next year.
Are both of you working, and will both of you be working after the baby is born? If either of you will be without an employer, it can make sense for the person with a job to make IRA contributions for both people ($6k each). If you have high deductible health insurance, you could also contribute to HSAs. Those do not expire, and can be used to pay medical expenses.
My core portfolio is a mix of VTI (U.S.) and VXUS (international). You could use a default of 1/5th VXUS if you don't have a preference.
Thank you for your reply.
Our emergency fund is currently 6 months for 100% of our spending for the past year or so.
As of now my wife would like to continue working. I would like to get us in a place where she can stay home if she wants. With our current expenses I think she could do that. Our biggest expense currently is our primary mortgage (15 yr $1560/month) followed by our vacation home/STR at $1070/month. The STR/vacation home has covered all expenses and then some so I’m not really worried about that.
That said her income is substantial and if it could continue coming in I would be a happy man!
I will look into VTI and VXUS. Thank you
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