Author Topic: Where to Stash My Cash - Investment Order Advice Wanted  (Read 629 times)

okparallax

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Where to Stash My Cash - Investment Order Advice Wanted
« on: December 16, 2020, 11:22:55 AM »
Hello all

So I am familiar with the Investment Order posts, and I am on board with the logic. That being said I am trying to come up with a plan for 2021 and beyond. We currently live in a LCOL area but are considering moving closer to family in a HCOL area. In so doing our home price may easily double to around 500k up from the current value here of 240k.

I had decided to put all of our extra money after 401k and IRA contributions into a savings account in expectation of the move so that we have a large amount to put into the downpayment to get the future monthly payments down.  When I thought about it though I realized that we are losing interest each month on the home loan now and it might make more sense to pay off the current mortgage much earlier and then take out a home equity loan for the downpayment if and when we move(though I admit I like the idea of just having the cash rather then taking out a just when we are needing to get another mortgage).

We also have a 2nd child do this year and I have toyed with the idea of front-loading their 529s in the next year and then being able to almost cost on contributions until they need the money later.

We have approximately $2,000 a month after our bills 401k, ira, and 529 contributions to utilize.  So the question is what should I do with the extra monthly money we make? We will be maxing out both of our 401ks

Our assets/debts are listed below, we have no debts other than our mortgage.

Cash
33k

Investment Account totals:
780k (70% retirement, 30% brokerage)

529 Account
15k (1 child, 2nd/last on the way)

Mortgage
62k (20 years left on 4.6% APR) We are considering refinancing to a 15 year at 2.5%


TLDR:
What should we do with our extra money; save up for future home purchase, pay down the current mortgage, front load college 529 plans
« Last Edit: December 16, 2020, 12:56:08 PM by okparallax »

formerlydivorcedmom

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Re: Where to Stash My Cash - Investment Order Advice Wanted
« Reply #1 on: December 16, 2020, 01:05:25 PM »
How soon will you make a decision on whether or not you will move?

okparallax

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Re: Where to Stash My Cash - Investment Order Advice Wanted
« Reply #2 on: December 16, 2020, 01:22:36 PM »
Honestly, I am not sure, seems like every 6 months we push it back. We were getting pretty close but then decided to have a child and didn't want to move beforehand, then didn't want to move in the first year, then decided to have a 2nd child, and now here we are again.

Our jobs are pretty well compensated, and ideally, I would like to keep them when we move. I will be talking to my employer in March about that during my yearly review. So if that gets the OK I would say I could see us moving in 2021 for sure. Otherwise, we may try to stick with the current situation as long as possible for financial reasons. Tough with aging parents to consider. Our oldest is going to be 2 this summer and I would like to be living elsewhere for sure by the time he starts school.

okparallax

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Re: Where to Stash My Cash - Investment Order Advice Wanted
« Reply #3 on: December 18, 2020, 07:08:58 PM »
Even though the market is high, I am thinking with the cash I have already saved up we will front-load both our 2021 Roth IRA contributions in January. Then reassess in February.