Hello All,
I'm 25 currently maxing out 3% matched contribution to employer's Simple IRA (try to avoid this for much more than that though, as the fees are atrocious). Also have Roth IRA with Vanguard which I plan to max out at $5.5k/yr. in VFFVX (may re-allocate manually into Admiral shares when I can). All combined, this is 15% of my pretax income now going into retirement accounts. So in total, ~$5,800 in Roth (VFFVX), ~$5,900 in Rollover IRA (VFFVX), ~$1,900 in Simple IRA (AAMTX), and $20k in emergency savings.
Have a condo with a 30 yr mtg $205k @ 3.875%. I've been making additional principal payments (~$600) monthly, but thinking there's better ways to put that money to work.
With my current setup, would it make more sense to invest that extra monthly amount into a taxable account with e.g., VTSMX (then VTSAX when possible) and then making a lump sum mortgage payment later on with those proceeds? There's a fair amount of upside in my earning potential, so I would scale this investment up as I earn more in the coming years instead of upgrading my lifestyle like most people tend to do.
I plan on staying in the condo for at least ~5 years, depending on unpredictable life factors. The ultimate goal is to own it free and clear as my first rental property as quickly as possible. Open to any other suggestions too.
Thanks!