The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Bradfurd on October 07, 2015, 10:35:19 AM
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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!
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1) https://www.google.com/webhp?hl=en#hl=en&q=spousal+ira
2) http://forum.mrmoneymustache.com/investor-alley/paying-off-mortgage-early-how-bad-is-it-for-your-fi-date/
http://forum.mrmoneymustache.com/real-estate-and-landlording/the-great-'pay-off-mortage'-vs-'invest-in-stocks'-debate-possible-solution/
3) I like Vanguard
4) Change your payroll withholding now, if your child will be born this year, lowering your taxes on each check.
Lookup: Child Tax Credit and Savers Credit
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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?
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whats your mortgage interest rate what you pay is of no consequence to the invest vs payoff debate
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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.
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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).
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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
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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
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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.