Modest income, bad debt gone--what's next?

[stephballwojtyna]

Hi all,

Can't wait to hear your advice! Quick snapshot, my husband and I are working towards FI and started wading in last year. In November, I paid off my car loan early, in February we refinanced our mortgage (and got rid of PMI) on our 700 sq ft home in VT, and I paid off my student loans 5 (!) years early last month. This has saved me about $500 a month and I'm already investing about $760 per month towards retirement. I'm maxing out the employer match and I have my Roth IRA deposits set to max out my contribution. What should I be doing to invest next? Open another retirement account, build up a larger emergency fund, add more to my 403b? I only make about $45k a year and I'd like to retire ASAP, as of now, I know that it will still realistically be 12-15 years before I can draw down 4% and retire. Are there folks who have been in my position or have reached FI and have advice? THANK YOU SO MUCH!

Talk soon,
Stephanie

P.S. I've started a website about our journey with FIRE. I won't shamelessly plug it here but would love to share more with you all about it and learn from others who are blogging etc.

[JGS1980]

You make 45K, but your tax bracket is based on joint income, so what do you two make altogether?

Do you have an E-fund for 3-6 months of "bare bones spending? That would be my first next step.

I ask because this will determine whether your next steps should be to max out your 403B (not just contribute to the match), or whether you should start a Taxable account once Roth IRA is maxed.

[stephballwojtyna]

You make 45K, but your tax bracket is based on joint income, so what do you two make altogether?

Do you have an E-fund for 3-6 months of "bare bones spending? That would be my first next step.

I ask because this will determine whether your next steps should be to max out your 403B (not just contribute to the match), or whether you should start a Taxable account once Roth IRA is maxed.

We probably have the 3-6 months but just barely. We got married in 2019 and as of our taxes for 2019 are in the 25% tax bracket, I believe making just about $110k total. My partner has some student loan debt and a small car loan that he should be paying off shortly but Covid is impacting his income currently. Obviousl,y we're working to get rid of those payments but should be able to do so in the next year or two. Trying to make larger strides towards FI and eager to hear what you all have to say! Thanks for responding, looking forward to hearing more.

[stephballwojtyna]

You've made a terrific start toward FI!

Have a read through the Investment Order thread https://forum.mrmoneymustache.com/investor-alley/investment-order/

A glance suggests that your next steps are an emergency fund that you're comfortable with, then an HSA account if you're eligible. When those are fat and happy, then you can get into the acronym soup of accounts.

Thanks so much for your response. I'll absolutely check out that thread, that's new MMM info to me/us. Our emergency fund is okay, I have any HSA and I believe my husband has some funds in his as well. We're excited to learn more and  being retired ASAP.