I'm hoping to gain some insight on my current financial plan. Kindve a "yay" or "nay" with some comments, if you will.
I'm not a newcomer to this forum or MMM. However, since some details of my finances will be in this post, and I use the same username across many forums, I wanted to be anonymous and created a new screenname.
As a background, Mustachian-ism began for me last year - when my school loans were coming due and I realized the deep hole I was in. I've since incorporated all sorts of behavioral changes - moving much closer to work, biking, switching phone companies, even using deodorant stones.
Besides behavioral changes though - I really feel I could use some insight on my finances.
Here's my situation:
Income: $254,400 approx
$240k/year (1099 income) + $14,400 (rental income)
Debt: $266 approx
School loans: 150k. These are a few different loans ($90k, 40k, and 20k, respectively) with interest rates of 6 - 8%. 9 years remaining.
Mortgage on rental home: $116k @ 5.25%. 27 years remaining.
Investments:
Personal:
Individual, Roth, 403b from prior employ:
$8600*, $29k, $14500, respectively.
Spouse
Traditional IRA, Roth IRA:
$7k and $51k, respectively.
- Stocks/Bonds mix is 90%.
- *not apart of retirement mix - A conservative Vanguard Lifestrategy fund - will be used towards new home
Other assets:
140k est. worth of rental home, located in MD (purchased @ 170k).
I usually keep about $5k ish in the bank account for expenses, bills, health care costs, etc.
Other useful information:
- 30 yrs old, I live in NM, currently rent, looking to purchase a home in about a year.
- No kids, looking to adopt a child in next 1-2 years, perhaps have one of our own.
- Spouse brings in minimal income, multiple health issues.
- The last year has been focused on debt reduction - I've brought down my school loan and mortgage debt significantly.
Here's my plan:
In the next 9 months, pay off another loan (the $20k educational loan) and save another $30k or so for down payment on a family home.
Afterwards, continue to focus (intensely) on school debt reduction.
Contribute the max in IRA accts. (Roth and Trad.).
Once School and Rental mortgage debt is gone (5 years?) - focus will become two - pronged
1) Paying the mortgage from the home I'll live in at that point.
2) Building up retirement funds with a Single 401k or SEP-IRA, along with Trad. and Roth IRAs, along with some 529s
So... Yay or Nay? Missing anything major? Insights? Comments?