Reply to Advice needed: order of priority

Forum Index » Money and Finances

Reply to "Advice needed: order of priority"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Good morning DCUMers,
I have a feeling most of you on this forum are better at handling their money than me, so I was wondering if you have any advice for us.
We have 2 kids (3, 5) and are 37 yo, both work full-time. We have a combined income of about $350K. 2 W-2s and 1 1099. 
We do not have any debt except for our mortgage. Our home is worth about 575K and the unpaid balance is around 200K, 15 Year interest rate 3.0%.  
Kids were both in private daycare/school but the older one is now going to start at public school come September, so we should be able to save about $12K there.
We are okay at savings and have now saved right over $1 million across our retirement accounts/taxable investment accounts/bank accounts/529s.

My questions: we already max out our 401ks/tsps., along with our SEP-IRA and non-deductible IRAs. Currently we save about $3K a month going into a very low interest rate savings account, which will now become 4K a month come September. Where would you put this extra cash instead?
(1)   Pay down our mortgage (this is my preferred choice)
(2)   Put the money into our vanguard taxable accounts across 3-4 index funds (DH's preferred choice)
(3)   Put more money into our 529s (currently one has 55K and the other 30K)  (my second choice, DH's second choice)

Opinions? In my ideal world, by the time our kids went to college (12 years for first child), our mortgage would be paid off, and both 529s would be fully funded (not sure what that even means to be honest!), and we'd be financially "independent" (i.e. the returns from our investments would cover our daily living expenses). We'd still continue working but maybe we'd go work for non-profits, or do our dream jobs.

Thanks in advance!![/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics