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If that is correct, Id pay car and mortgage off immediately and free up $3856 per month, or $46,272 per year. You would break even on paying your house off in about 2 years.
If that is correct, Id pay car and mortgage off immediately and free up $3856 per month, or $46,272 per year. You would break even on paying your house off in about 2 years.
thats alot of cash to be holding in savings
Yes $550,000 is correct as I sold all of my stocks due to the volatile market the last 2 months.
i agree to just pay off the mortgage. over the life of the loan that's a lot of interest you'll be saving and it sounds like you're risk adverse so it'd be good for peace of mind.
Yes $550,000 is correct as I sold all of my stocks due to the volatile market the last 2 months.
This needs to be worked on - it is impulse selling and will hurt you in the long run, especially after taxes and fees. Study after study have shown that people trying to time the market usually do WORSE after taxes and fees than those that simply stay the course.
Until you can change this behavioral issue, your long-run stock returns won't be good and it is probably better to just pay off your debt.
This needs to be worked on - it is impulse selling and will hurt you in the long run, especially after taxes and fees. Study after study have shown that people trying to time the market usually do WORSE after taxes and fees than those that simply stay the course.
Until you can change this behavioral issue, your long-run stock returns won't be good and it is probably better to just pay off your debt.
I agree with this. If you have over $500k in cash right now and worried about market volatility, pay off all your debt right now.
Also, your 15% contribution into your 401k probably maxes you out by June or earlier, assuming your income is >$275k annually, which is what I am assuming given your high net income per paycheck. You might be better off reducing that so you space out your contributions over 26 paychecks (approx $693 per paycheck) to dollar-cost average over the year. If you have no other tax deferred retirement accounts at your disposal, consider a back-door Roth IRA.
Start at the end and work backwards.
At what age do you expect to die?
How much annual income do you think you will need during your non-working (retirement) years? (Use current dollars for the first pass and don't get hung up trying to guess what inflation will be.)
At what age do you expect to retire?
What will your social security payment be on that day?
Desired income - SS = Investment Income --> 25 x II = Money needed in retirement fund that day. 33x if you are more conservative.
How will you get to Amount Needed?
Yes $550,000 is correct as I sold all of my stocks due to the volatile market the last 2 months.
Yikes. Sounds like this is going to be an AMT year.
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