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