Just planning my next financial step. Wife and I have the following assets
401K - $225K.
Roth IRA - $20K
HSA (in investment acct) - $20K
Rental Prop Equity - $190K, 3.5% fixed interest. Mortgage balance is $109K
Primary Residence Equity - $140K, 3.65% interest, Mortgage balance is $260K
Credit Card Debt - Zero
Car Debt - Zero
Savings in bank - $40K
TOTAL = $635K
After our monthly expenses (we're about 95% mustachian) , max 401K contriubtions, etc.., we typically have $3,000K left at the end of each month. I typically try to pay down the principal of the primary residence. However, now I think it could be good to open a vanguard and start building that up a bit so that I can tap into that before the 401K.
Is that the correct strategy? When we retire early, we could live off $25K/yr.