I want recommendation on my money state of affairs. I’ve been married for some time and we’re very economical with our bills. We have had a really low COA in a low COA a part of the nation during the last a number of years. We are usually not excessive earnings earners, however we’re married with no children and have low-cost tastes and hobbies. We earn round $4800 a month after tax and spend lower than half each month, leaving us with round $2500-$3000 a month on common. Our solely debt is our dwelling ($98000 at 3.75%, complete PIMI is $712/ mo). We have a bank card for gasoline however pay it in full each billing cycle.
We each contribute to a Roth IRA (presently $30000 in every) and considered one of us has a office retirement plan with obligatory contributions (it’s a state worker plan and is presently round $30000. We have a contribution requirement and can’t contribute past this quantity month-to-month). We max out the Roth IRAs yearly and at current we would not have a 401(ok) or different office choice. (There is a 403b however it’s actually a very rotten plan that solely presents round 4%-5% during the last ten years and it doesnt make sense to place cash right here if we will earn extra available in the market with some EFTs).
Our bills have been so low and our financial savings so excessive that now we have an emergency fund round $42k and have $78k in checking. (We even have round $10k in money). We must do SOMETHING with this liquid money as it’s simply sitting within the financial institution. We need to keep at the least $30k in financial savings as that is about 1 12 months of dwelling bills. (If that’s loopy please inform me. I do know the final rule is extra like 3-6 months, which for us could be nearer to $8k-$15k).
Can anybody supply recommendation on what we must be doing? We are considering of maintaining $20-$25k in our checking, and between that and the financial savings, we STILL have round $53k (extra if we cut back the checking or financial savings additional?) that should go someplace.
We are each doing $500 a month into our Roth IRAs (they’re totally invested in a Vanguard Target 2060 fund). We have a brokerage account (simply began with about $500 and is break up between VTI and VWO. I must do extra with this). If I continued to place $500 a month right here as effectively, we’re nonetheless saving on common $1000 or extra of earnings a month.
Reddit, WHAT DO? I need this cash to be someplace in addition to my financial institution, to develop and work for us, and perhaps retire early? If the mathematics is true, we would want round $800k-$700k by the point we had been 50 to retire then with $2500 a month. If the home was paid off, we may stay fairly comfortably with that.
Should I pay my home off sooner? I may do $500 a month further and pay the mortgage off in 9 years. Should I make investments extra within the taxable brokerage account? (I’m engaged on getting a job with an organization that gives a 401(ok), however proper now I’m the place I’m). I simply really feel so unsafe leaving all this liquid money mendacity round in a financial institution.
Thank you, stunning hivemind.