Hello All,
I would appreciate any input on this problem.
Here is the situation:
I have a high salary of around 300K (or more) per year, my wife stays at home with our 3 young kids.
We have paid off the mortgage and maxed out my 401(k).
I'm 45 and live in TX.
We spend less than 50% of our monthly post tax income, leaving a significant amount of post-tax money that I want to invest.
Here is the issue:
Up to this point I would say that my data is typical for the mustache community. The problem is that I am a small business owner and have signed a personal guarantee on real estate that we use for the business. This loan makes me (and my partners) liable for 4 million dollars of real estate debt on a ten year note. The business is doing fine right now, but there is a chance that things may get tough in the future and depends on lots of factors that are unpredictable and completely out of my control.
The question is what to do with the money I am saving every month? If if use the most efficient investment option i.e. vanguard mutual fund, I would stand the risk of losing all my investment. Because I live in Texas, I am thinking of buying a vanguard variable annuity. I know that variable annuities are generally junk, but an good investment is not going to be worth much if it doesn't belong to me anymore! In Texas a variable annuity is shielded from the future risk.
Anyone else in a similar situation? Any ideas or alternatives?