This is a great site. I am glad I discovered this.
We have been living a somewhat mustachian lifestyle these past few years.
Some details:
Ages: 45 both he and she
Assets: close to 500k -- almost all of it is in retirement accounts. Have two 401ks and 2 Roth IRAs.
Current marginal tax bracket 32% (25 federal + 7 state)
Expenses: approx 3500/month
Mortgage: 280k at 3.5% for 30 years. Still have about 28 remaining years and about 270k balance.
Yearly savings: about 60k (2 401ks with employer match and 2 Roth IRAs)
My questions:
1. what to do with extra cash?
We have approximately 7-800 a month available. Should we throw this all into the mortgage?
2. Roth IRA
Also, I am thinking that I should not be saving in a Roth IRA especially since our tax bracket is high? If so two choices:
a) Traditional IRA
b) Mortgage prepayment
I am thinking that if I took the extra cash + Roth IRA money and attacked the mortgage, then we should be able to prepay it off in 7-9 years. Then our monthly expenses would come down by a huge amount. Down from 3500/month to 2300/month. Maybe we will have enough to be semi-retired. The only downside is that so much of our assets are tied up in accounts which cannot easily be accessed without limits before 59.5.
Ideally, I'd like to be FI by 50. But that will not happen due to the mortgage.
Thanks all. Your inputs would be most appreciated. This is a great forum.