Reply to Family of 5, appx $300K HHI - would you do anything different?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Here are kids activity expenses which I guess you can tell me is crazy and you all don’t spend this much for kids activities.

Kid 1: $275/mo. swim, plus appx. $200 each fall and spring for rec sport. (May not continue swimming next year for interest reasons)
Kid 2: $275/mo. swim, plus appx. $1000 each fall & spring for travel sport (but seriously considering switching back to rec only next season for not being worth it for talent reasons)
Kid 3: $300/mo. dance; $160 mo. gymnastics

There is also an $50/mo. instrument rental for a kid. [/quote]

So this is $16,320/year for kids' activities, *not* including camps.  That is a lot.  If you've got plenty of money then have fun, but if you're feeling the pinch like you say, then this is an easy place to cut back.  If you take Kid 1 out of swim, Kid 2 out of travel, and Kid 3 picks a sport, that's a decent chunk of change that could be directed to 529s.

Once you get all of your numbers lined up, I would pause the mortgage pre-payment and use that $1600/month to pay off one or both cars and possibly your student loan.  Then DH can go back to prepaying if he must ([b]you shouldn't be doing this, but people who like to prepay their mortgages don't listen to reason[/b]) and you will have freed up ~$1k/month to use for other purposes.  [/quote]

It's irresponsible and indicates an overly simplified way of thinking to make blanket statements either for or against something like mortgage prepayment.

We paid our mortgage off well in advance when rates were above 5%. We also invested heavily in stocks. Popular advice was to also invest some portion of retirement or other investment savings into bonds, or bond funds, for "balance." A lot of advisors and regular people will simultaneously preach that mortgage prepayment is dumb, but holding some bonds for balance is a wise move.

I figured that it did not make a lot of sense to buy an index fund of bonds that were paying less than the interest rate of our mortgage. Prepaying our mortgage years ago is the hedge that, then and now, makes us comfortable with a 100% stock portfolio.

[/quote]

No one is quibbling about OP's bond position.  They have two car loans and a student loan - all things that should be paid off before a mortgage.  But if you thought I needed an example of people who prepay their mortgage not listening to reason, then thanks for the assist I guess.[/quote]

Nice try, but no.

your comment was "but people who like to prepay their mortgages don't listen to reason".

That was not specific to OP's situation. [/quote]

Actually, my comment was "[b]you[/b] should not be doing this, but [line you truncated]".  I was talking to OP about her and her husband's position.  I also find you to be unreasonable and silly, but I didn't know you yet when I wrote that comment.[/quote]

So you're dumb financially, and you can't write clearly. Got it. [/quote]

That wasn’t OP though and let’s be real that I’m the dumb one financially in this convo. But you are all helping me!!!![/quote]

I know it wasn't you, OP. I'm the one who told you about the common thinking for emergency funds just now, and the one defending attacks against you for prepaying your mortgage. [/quote]

OP is not prepaying her mortgage.  Her husband is, for reasons she does not know, and she's indicated he doesn't even know what the interest rates are on all their debts while doing so.  Given the actual facts and what's been written so far, "attacks" is pretty hyperbolic, just seems like a single hit dog is hollering in this thread and it's not OP.[/quote]

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