I have been reading this board for a couple years, learning from the questions and posts and would like to call on the boglehead group knowledge regarding a question my wife and I are facing. Should we pay down the mortgage or, given federal/private college aid formulas, save for college, assuming all three kids will be attending some form of college/university.
married, 3 kids (current ages 13, 11.5 and 10)
6+ months in emergency funds
~160k/year income (she: ~90k w2 income and he:~70k self emplyed income)
~280k in tax deff and ~70k in roths. About 22k per year contribution split into 457, SEP and roths.(split depends on acct. advise based upon self employement income)
-she: public safety pension @50% highest 3 years income; eligible in 3 years, but will need to work longer
-140k balance on home valued in the 450k range. Private mortgage agreement with benevlant relative tagged to prime rate (prime-1.01%).Current rate 2.24% Current monthly interest about $270. Note due 2028.
529 savings for the 3 kids:
Should we be agressively paying down the mortgage (at that great, albeit adjustable, rate) or putting more of our monthly $ into saving for college and if so what investment vehicle(s).
Note: we are not big fans of the UGMA due to the fact that kids get control of the $ at age 18.
Feel free to request additional info. Thanks for the info. We can take direct, constructive critiques.