Some initial comments:
Portfolio: Your portfolio is currently $753k (401k, Roth IRA, HSA, taxable. land, and cash). When do you plan to stop working and do you have a sense for how much annual income you would need or like to have when no longer working?
Of course, it's nice to have a paid off house, but don't include this as part of your investment portfolio. While it can appreciate in value, its main purposes is to provide shelter and thus excluded from asset allocation calculations. However, when considering how much income you would need in retirement, your paid off home will reduce those expenses.
529 also excluded as it is for your child.
As a side note, a mortgage can also be a valuable tool to help achieve your financial goals...particularly if interest rates are reasonably low. A mortgage offers:
* Hedge against inflation
* Liquidity
* Leverage for further investments
Something for your consideration in the event you do move again someday and the conditions make sense to you to take advantage.
Future contributions toward financial independence: Solid contributions. Spouse also works or other?
529 Plan: Funding a 529 plan for your child's education is a great gift. What amount do you plan to fund? Everyone has different ideas about what is an acceptable education. For example, some want their child to go to a top school and live on campus, whereas others may have their child start with community college and attend state university while living at home.
Most importantly, you just want to keep in mind that whatever you are funding in the 529 reduces the amounts you are funding for your own retirement. Of course, if your have enough income and time, you can definitely do both.
401k vs Roth: Please see link below.
https://www.bogleheads.org/wiki/Traditional_versus_Roth
Your questions:
1. I think you are putting plenty away in the 529 and would be more interested to direct any additional monies toward investments for financial independence.
2. See Traditional vs Roth above. Otherwise, my proposal would be to stick both Traditional and Roth to receive the advantages of both.
Best wishes.
Portfolio: Your portfolio is currently $753k (401k, Roth IRA, HSA, taxable. land, and cash). When do you plan to stop working and do you have a sense for how much annual income you would need or like to have when no longer working?
Of course, it's nice to have a paid off house, but don't include this as part of your investment portfolio. While it can appreciate in value, its main purposes is to provide shelter and thus excluded from asset allocation calculations. However, when considering how much income you would need in retirement, your paid off home will reduce those expenses.
529 also excluded as it is for your child.
As a side note, a mortgage can also be a valuable tool to help achieve your financial goals...particularly if interest rates are reasonably low. A mortgage offers:
* Hedge against inflation
* Liquidity
* Leverage for further investments
Something for your consideration in the event you do move again someday and the conditions make sense to you to take advantage.
Future contributions toward financial independence: Solid contributions. Spouse also works or other?
529 Plan: Funding a 529 plan for your child's education is a great gift. What amount do you plan to fund? Everyone has different ideas about what is an acceptable education. For example, some want their child to go to a top school and live on campus, whereas others may have their child start with community college and attend state university while living at home.
Most importantly, you just want to keep in mind that whatever you are funding in the 529 reduces the amounts you are funding for your own retirement. Of course, if your have enough income and time, you can definitely do both.
401k vs Roth: Please see link below.
https://www.bogleheads.org/wiki/Traditional_versus_Roth
Your questions:
1. I think you are putting plenty away in the 529 and would be more interested to direct any additional monies toward investments for financial independence.
2. See Traditional vs Roth above. Otherwise, my proposal would be to stick both Traditional and Roth to receive the advantages of both.
Best wishes.
Statistics: Posted by invest4 — Tue Mar 05, 2024 3:00 am — Replies 2 — Views 392