Life Situation: Married couple, single child (11m), NH resident, age 35 and 31, both RNs, work 3 days a week, child in daycare 2 days per week, looking to maximize flexibility and independence
Gross Salary/Wages: $10,000/month (varies with shift differentials)
Pre-tax deductions
403b: $1600/month combined (20%)
HSA: $562.50 (maximum)
FSA: $416 (maximum)
Adjusted Gross Income: $5,400/month (varies)
Current expenses:
Mortgage $1460, 15 year original in 2015 at 2.875% (100k left to pay on a 190k house)
Rough Breakdown:
Taxes: $418
Principle: $818
Interest: $224
Home Owner's Insurance: $33
Internet: $36
Heat: $120 (oil budget plan, we live in northern NH, offset heat with a wood burning fireplace)
Electricity: $75
Childcare: $650 (only 2 days per week) - this is reimbursable from pre tax FSA
Food: $800 (currently working on decreasing this)
Water/Sewer: $50
Car Insurance: $56
Life Insurance (combined for both of us)
$80 for $500k for 30 years
$40 for $500k for 15 years (thinking of getting rid of this one)
Gas: $100
Unaccounted for Miscellaneous: $100 (beer, recreational activities, rare dining out, etc)
Assets:
2006 Kia Sportage, 2012 Toyota Corolla
General Savings/Rainy Day Fund: $18,000
Checking: $5,000 (we have personal accounts and a joint account. We tend to keep a minimum of 1,000 in each. The 529, IRAs, and travel savings pulled from personal accounts on a monthly basis)
Travel Account: $5,000 (camping trip in September to Banff/Jasper planned)
HSA: $10,500
Roth IRA: 111,000 (combined, Vanguard robo-advisory services
403b: $108,000 (combined-Age Based Portfolio)
401a: $49,000 (combined-Age Based Portfolio)
529 College Savings: $15,000 (for our 11 month old and 2nd baby in planning) - Vanguard, highest risk Age Based Portfolio
Other Savings
Travel/vacation budget: $400 (we're discussing getting rid of this)
529: $250/month
Roth IRA: $916 (combined max contributions)
Liabilities:
Mortgage $1460, 15 year original in 2015 at 2.875% (100k left to pay on a 190k house, 8 years left at minimum payment)
Rough Breakdown: Taxes: $418, Principle: $818, Interest: $224, Home Owner's Insurance: $33
Specific Question(s): I realize that paying off the mortgage can be seen as silly, with such a low interest rate. I know that I'm apt to make more by investing in either a retirement or personal account. We're prioritizing maximum flexibility by paying off the mortgage rather than focusing on early retirement right now (allowing my wife to stay home after the second child). Current thoughts include: stop contributing to the HSA since we currently have $10,000 (2 years worth of deductibles), stop contributing to the 403b, cutting our general savings account in half ($18,000 to $9,000), and cutting our monthly travel budget in half ($400 to $200).
Any advice as to where we should take it from here?