Reply to Saving for college vs paying off house

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Can you split 1/2? I can see logic in both approaches. We paid off mortgage first and it worked out fine for us. Knowing your home is completely paid for gives you tremendous peace of mind. [/quote]

OP here. But is this financially the best strategy? I'd rather have a rental property before paying off the mortgage.[/quote]

Your husband is clearly not comfortable with carrying a lot of debt.  I would not harp on buying a rental property because that would mean another mortgage (more debt) plus the expense of another property - which you may or may not make money on.  Wait until the mortgage on your primary residence is paid off before bringing that up again.

In my opinion, you should 1) Invest at least enough in your company 401Ks to get the employer match.  Do not throw free money away.  You are young and your money has lots of time to grow with compound interest - take advantage of that. 2) Pay extra on the mortgage each month because having it paid off will give your husband peace of mind.  3) Invest in your child's/children's college accounts.

You do not want to put your eggs all in one basket - putting everything in real estate is risky.  Putting all of your money in the stock market is risky.  Not investing in your children is a different kind of risk but a risk all the same.  I would seriously consider meeting with a financial adviser now.

You have a great income for two 30 year olds. Be grateful and don't take it for granted.[/quote]

OP here. I do max my 401k, but DH will only put 10% into his. I handle all of our finances, but can't physically put more money into his 401k because that's through his work.

We have been splitting putting money into the mortgage and the Vanguard account.

DH is extremely risk adverse. He's an engineer :) We're very grateful for our income, but have also worked very hard to get here and are frugal. This area is just expensive. I do think sitting down with a financial adviser would be a good strategy. [/quote]

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