A little background stats: I'm 35, my wife is 26, and we have a 1 yr daughter with another expected early next year. We just built a house this year and while I did plenty of spreadsheets on the costs and budgets, I'm starting to feel overwhelmed and second guess myself. I used to be ok carrying debt and managing it but as our daughter grows up I find myself wanting to be more financially free. So I have a plan but want to to see what some other opinions are.
We live in the midwest in a LCOL area, combined gross salary 113,000.
Savings
401k - 10,000
457 - 26,000
IRA - 10,000
Roth IRA - 6,500
Liquid Savings - 4,000
Also have a pension that i've been paying into for 5 years. I don't know if I'll stay till I retire but if I leave I have the option to get all that I've put in plus interest. Estimated value 25,000
Debts
House (1500/month @ 4.25%) - 282,400
Rental (780/month @ 4.25%) - 140,800
SUV (392/month @ 3.2%) - 24,300
Variable Student Loan (180/month @ 5.1%) - 17,600
Federal Student Loan (165/month @ 4.5%) - 21,000
Credit Cards (0%) - 14,000
401k Loan - (200/month) 5,300
457 Loan - (160/month) 13,900
The loans are paid to myself with interest so they don't bother me as much. We have two other paid off vehicles, I am selling one that is worth about 4K. The other is reliable but worth much less as it is almost 20 years old. I know it makes more sense to sell the SUV but the wife loves it and the car I'm selling is a previosuly salvaged car and she doesn't like our daughter riding in it. We both need a car and we both pick up and drop off for daycare.
I'm currently renting the other house to my brother who will likely purchase it and take advantage of current low interest rates. Without a realtor I will net about 14k from the sale. So I will have a lump sum of about 18k after the sales.
Not counting the minimum payments, we have about 1400/month extra to put toward debt. Thats while stashing 500/month in savings but only the minimum in retirement accounts to get the match. Paying back the 401k/457 loans first would give us the most cash flow. I'm playing the 0% game with the credit cards, won't be adding to that at all.
We already want to downsize, but to not lose our ass in the new house we need to stay for a few years. Luckily there are no lots left in this area and it is desireable. Pretty much why we jumped in before we were ready. On paper it works, just tight.