Hey there folks. I had a few questions regarding what my next few steps should be in terms of preparing to purchase a home in ~3-6 years.
My wife and I are currently in Graduate School to become psychologists. She is planning on becoming a College Professor, whereas I will likely end up consulting for Industrial Organizational psychology related things. Right now we are about to pay down my super low interest student loans ( ~2.7%). They are currently at 15k, but we are about to make a 10 k payment. Although I understand that we are missing out on market returns by choosing to do this, for both peace of mind and credit improving reasons we have chose this path. Once we finish paying this loan (hopefully within 7 months), however I am not sure where to start focusing in terms of investments. It is very likely that we will need to have a significant amount of money ready for a down payment, but the return on the lower risk forms of investing right now are pretty trash.
Following student debt assassination, what would you recommend my wife and I do? When making recommendations keep the following in mind:
- Although my wife has good credit, I basically do not have much of a credit history.
- We have a 6 month emergency fund built up.
- We are planning to buy a house in the St.Paul/Minneapolis area (should be ~300k), in the next 3 to 6 years.
- We are very good savers, but we want to start building out our investment income.
- We do not wanna be caught with our pants down due to market swings when it comes time to buy a house.
- Our potential joint income is likely to be high, however we are limiting ourselves in terms of job opportunities because we want to be in the Twin Cities (friends and family) area, thus we want to have some degree of safety and not have to plan on eating chickens that have not yet hatched.
- I don't want to feel like I am just letting my money rot away due to inflation, but I don't want to lack the liquid assets for a down payment
- Moar credit plox
We would greatly appreciate any advice you wise mustachioed sages may have to offer, particularly in terms of asset allocation and credit building.