Author Topic: Investing/mortgage advice? (Case Study)  (Read 2679 times)

Bradfurd

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Investing/mortgage advice? (Case Study)
« on: October 07, 2015, 10:35:19 AM »
The following data will apply starting in December 2015, when our first child arrives, and my wife becomes a SAHM. I am 30 and she is 32.

Gross Annual Salary/Wages: $81K

Pre-tax deductions: state and fed taxes, health insurance, 7% (mandatory) of gross into state pension, 8% (optional) of gross into 403(b) (let's say $34K per year total deductions)

Assets: $13K in checking/savings, $57K in 403(b), $27K in wife's Roth IRA, $265K home, $6K car and a $16K car, pension currently at a cash value of $13K

Liabilities: $210K balance remaining on 30 year conventional mortgage @ 3.5%...that's our only debt...paying $220 extra per month on principal in order to pay it off in 2035 rather than originally scheduled 2043. Minimum P&I is $1075, with taxes & insurance it is $1275, we pay $1495.

Specific Question(s): Should we be concentrating on:

1) funding retirement more aggressively (can't fund wife's Roth IRA since she won't have an income)
2) paying off mortgage even more aggressively
3) opening non-retirement investment accounts
4) Anything else I'm not thinking of

Thanks Mustachians!
« Last Edit: October 07, 2015, 11:03:08 AM by Bradfurd »

BarkyardBQ

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Re: Investing/mortgage advice? (Case Study)
« Reply #1 on: October 07, 2015, 10:41:51 AM »
« Last Edit: October 07, 2015, 10:44:07 AM by BackyarBQ »

Bradfurd

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Re: Investing/mortgage advice? (Case Study)
« Reply #2 on: October 07, 2015, 10:54:26 AM »
Thanks - relatively new to the forums and appreciate you posting the links.

Can an existing Roth IRA be converted to a spousal Roth IRA? Any disadvantages to doing this?

boarder42

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Re: Investing/mortgage advice? (Case Study)
« Reply #3 on: October 07, 2015, 10:59:26 AM »
whats your mortgage interest rate what you pay is of no consequence to the invest vs payoff debate

BarkyardBQ

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Re: Investing/mortgage advice? (Case Study)
« Reply #4 on: October 07, 2015, 11:05:46 AM »
whats your mortgage interest rate what you pay is of no consequence to the invest vs payoff debate

Punctuation man... I'm confused about your direction here... :)

Looks 3.5% in the OP.

bacchi

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Re: Investing/mortgage advice? (Case Study)
« Reply #5 on: October 07, 2015, 11:06:46 AM »
Can an existing Roth IRA be converted to a spousal Roth IRA? Any disadvantages to doing this?

A "spousal" IRA is a regular IRA with different contribution rules. In other words, they're the same.

Also, with your deductions and income, you'd probably be best with a traditional IRA (for both of you).

boarder42

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Re: Investing/mortgage advice? (Case Study)
« Reply #6 on: October 07, 2015, 12:00:51 PM »
whats your mortgage interest rate what you pay is of no consequence to the invest vs payoff debate

Punctuation man... I'm confused about your direction here... :)

Looks 3.5% in the OP.

he editted and added that

but in that case INVEST .... SUPER INVEST .... STOP WASTING THAT 220 a month

BarkyardBQ

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Re: Investing/mortgage advice? (Case Study)
« Reply #7 on: October 07, 2015, 01:19:14 PM »
whats your mortgage interest rate what you pay is of no consequence to the invest vs payoff debate

Punctuation man... I'm confused about your direction here... :)

Looks 3.5% in the OP.

he editted and added that

but in that case INVEST .... SUPER INVEST .... STOP WASTING THAT 220 a month

+1

Bradfurd

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Re: Investing/mortgage advice? (Case Study)
« Reply #8 on: October 07, 2015, 01:54:53 PM »
whats your mortgage interest rate what you pay is of no consequence to the invest vs payoff debate

Punctuation man... I'm confused about your direction here... :)

Looks 3.5% in the OP.

he editted and added that

but in that case INVEST .... SUPER INVEST .... STOP WASTING THAT 220 a month

+1

Thanks for the tax advice...I have researched the child tax credit, but I think my income makes me ineligible for the savers credit.
« Last Edit: October 07, 2015, 01:59:01 PM by Bradfurd »