So I have been a long time reader and fan of MMM, and believed in his thinking before reading, but after reading he has challenged me to the next level.
I Think I have a unique situation that allows me to use save my money in different capacities than the traditional mustachians. But I wanted to run it past yall to make sure I’m not overlooking anything.
Our Situation:
My wife and I are 25 been married for 3 years have no kids, and make $40,000 each and I get occasional bonuses.
My wife has a 403b which her employer puts 10% in whether or not she contributes, to which we contribute 3%
I have a simple IRA offered through my work with a 3% match and I am currently contributing 3%
What makes our situation unique is that my wife is an “ordained minister” and as such she qualifies for a “Housing Allowance” every year. To the best of my knowledge and understanding (CPA’s chime in if I’m off base) we designate an amount of her income every year that we think will be spent on our home, which includes down payments, Interest (we get to double dip and still write the interest off), principal, taxes, insurance, furniture, appliances, upgrades, extra principal payments etc. and this amount is not federally income taxed.
So my current strategy has been to buy a house every year, and then move out and buy another house keeping the old one as a rental. We have done this once already and are planning to do it again this summer, giving us 2 rental properties and a home that we live in.
Now as I understand it, everyone here is pro maxing 401K because of the tax benefits, which I believe I am getting by putting my money “into” my home.
We basically designate her whole salary as “housing allowance” minus what she contributes to her 403b.
So I know that was long but basically I guess my question is does this sound like a good plan? Does it make since to not max the 403b and IRA since we can put that money “into” our home with the same tax advantages, and have access to it before reaching 59.5?
Thanks in advance for your feedback.