So, sorry so dang long, please help! Thank you in advance.
Ok, I've been reading many financial blogs and sites for some time now and have realized this forum has the most intelligent people who go out of their way to help others. I would greatly appreciate any advice and help here. I'm also very aware I'm not where I need or want to be financially, but am confident that with your help and my hard work my family can reach some huge goals.
Married, file jointly
Wife is 39, I'm 37
Combined income around 120,500 gross
25% federal
No state, TX
Debt: My annoying student loan. 15k, 3.5%.
Mortgage is 1850 month on 80% loan with taxes, insurance, 4.25%, 2nd lien 15% loan is 291 month 6.25%. 249k on first, 46k on 2nd.
No CC debt, No auto debt
Savings: About 3 months, goal is at least 6
Investments: I will have full state pension if I teach to 60, early partial if 54-55.
Roth: T. Rowe Price Cap Appreciation 15k, maxing out
Wife's employer: They contribute 4.5% of 75k, plus she's been putting in a tiny $100 month, 24k. VADRX Invesco 500 Index 50%, Fidelity Bond Index 40%, Vanguard Small Cap Index 10%
Her Roth: Vanguard Wellington 33k, Wellesley 3k, maxing out
4 year old daughter 529 T. Rowe Price. 250 month
We are behind because we took a while paying off debt just to get here. We sold old house last year because neighborhood was getting bad, and schools for daughter. This house is an investment long term, but great house to get our daughter through school with great schools!
My questions are:
1.) We are paying over $1,000 month towards student loan on top of principal. Should we pay this or less and invest rest? Wife really wants it gone.
2.) We have recently started really budgeting and will have quite a bit more to invest, I'm thinking 403b for me? Plus more for Wife's 403b. There is no match, but we do have Vanguard. How much and what funds? I sleep well with funds like Wellington and T. Rowe Cap App.
3.) Once the student loan is paid off, we will have almost 1200 extra month to pay down 2nd lien or invest or both. Best strategy here?
4.) Auto fund so we never have car payment again?
5.) Taxable Account through Vanguard? Would love to max 403b accounts and Roths, but can't at this time.
I want to retire at 55, not 60, meaning my pension would be less. So I have 18 years to make this goal happen. I'm also reading a lot of dividends books and read the dividend Mantra site. Wondering if I should go all out dividend stocks or not?
We will sell this house come retirement and move somewhere less expensive with lower taxes.
As you can see I have a lot of questions and I would be extremely grateful for your time!