Are we financially okay?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Bacchus01
Posts: 3182
Joined: Mon Dec 24, 2012 9:35 pm

Re: Are we financially okay?

Post by Bacchus01 »

8foot7 wrote: Mon Aug 19, 2019 8:37 am
Bacchus01 wrote: Mon Aug 19, 2019 7:43 am
veindoc wrote: Sun Aug 18, 2019 9:42 pm
takeabiteoflife wrote: Sat Aug 17, 2019 9:17 pm Me 48 yo, DW 46 yo, 11 yr old, 8 yr old
We live in a VHCOL area in East Coast
Monthly expenses are ~$13,000-14,000 per month (~$6K for mortgage and property tax)

Investments:
Cash/MM/CD - $2M
Stocks - $2M
Bond - $100K
Mortgage Debt of $800K (equity of ~$600K)

Wife was just laid off and got 3 months of severance. It’s unclear when she'll find another job and for what level of compensation.
I really enjoy my job in financial services and income is $200K per year with potential for 15% annual cash bonus.
We do not plan to move to a LCOL area since we love our neighborhood and great public schools.
Plan would be to still max my 401K (4% employer match) but try to breakeven or be slightly negative on one income.

We obviously need to work on our asset allocation and were hoping for a market selloff for a better entry point.

Are we financial secure as long as my income stream is steady?
What are your suggestions to be more financially secure?
Why do you have so much in cash? I would pay off the house today and create some breathing room. How much are your property taxes?
Alternatively, I would never advise paying off the house. Your cash reserve gives you huge flexibility.

Refinance it.
He'd still have 1.2M in cash after paying it off. How much flexibility do you need, really? If he were cash poor I'd totally agree with you but mathematically it makes no sense to have 2.5 times your mortgage balance in cash earning half of what you are paying on your loan.
That’s your opinion. More flexibility is better than less. That’s mine.
jharkin
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Location: Boston suburbs

Re: Are we financially okay?

Post by jharkin »

rocket354 wrote: Sun Aug 18, 2019 11:42 pm Pay off your mortgage rather than keeping so much in cash and equivalents. Then you will have a significantly reduced monthly expense, and can be perfectly fine on one income where you are for as long as you want. And you will still have $1.2MM to move into the stock market/bonds whenever you are ready to jump.
+1 I usually dont advocate paying off the mortgage early at today's low rates... but given your obvious risk aversion to the market it would probably be a good move for you. If you do your monthly expenses will probably drop to about 10k, which is easily carried on 200k salary and you will still have 3.3m in investable assets - which probably has your retirement completely covered even if you never add another dime.

Then take the rest of the taxable assets and move it all into something like a 60/40 or 50/50 index fund portfolo, forget about it and enjoy life.
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8foot7
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Re: Are we financially okay?

Post by 8foot7 »

Bacchus01 wrote: Tue Aug 20, 2019 7:02 am
8foot7 wrote: Mon Aug 19, 2019 8:37 am
Bacchus01 wrote: Mon Aug 19, 2019 7:43 am
veindoc wrote: Sun Aug 18, 2019 9:42 pm
takeabiteoflife wrote: Sat Aug 17, 2019 9:17 pm Me 48 yo, DW 46 yo, 11 yr old, 8 yr old
We live in a VHCOL area in East Coast
Monthly expenses are ~$13,000-14,000 per month (~$6K for mortgage and property tax)

Investments:
Cash/MM/CD - $2M
Stocks - $2M
Bond - $100K
Mortgage Debt of $800K (equity of ~$600K)

Wife was just laid off and got 3 months of severance. It’s unclear when she'll find another job and for what level of compensation.
I really enjoy my job in financial services and income is $200K per year with potential for 15% annual cash bonus.
We do not plan to move to a LCOL area since we love our neighborhood and great public schools.
Plan would be to still max my 401K (4% employer match) but try to breakeven or be slightly negative on one income.

We obviously need to work on our asset allocation and were hoping for a market selloff for a better entry point.

Are we financial secure as long as my income stream is steady?
What are your suggestions to be more financially secure?
Why do you have so much in cash? I would pay off the house today and create some breathing room. How much are your property taxes?
Alternatively, I would never advise paying off the house. Your cash reserve gives you huge flexibility.

Refinance it.
He'd still have 1.2M in cash after paying it off. How much flexibility do you need, really? If he were cash poor I'd totally agree with you but mathematically it makes no sense to have 2.5 times your mortgage balance in cash earning half of what you are paying on your loan.
That’s your opinion. More flexibility is better than less. That’s mine.
Well, the math is not my opinion; it's fact. He's falling behind to the tune of mortgage rate less return on cash. It's an expense of $16,000 a year. There's no argument to be had about that math; it is what it is.

But yes, what you and I think about what he should do about it is our opinion. IMO $16k is an expensive price to pay for "flexibility" when you would have over a million in cash left after ridding yourself of the expense.
Last edited by 8foot7 on Tue Aug 20, 2019 8:07 am, edited 1 time in total.
FrugalConservative
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Re: Are we financially okay?

Post by FrugalConservative »

I never understood these questions, I find them quite disingenious.

You are worth 5mm and you are asking if you are okay financial?

OP, Do you not see an issue with that ?
Vanguard Fan 1367
Posts: 1821
Joined: Wed Feb 08, 2017 3:09 pm

Re: Are we financially okay?

Post by Vanguard Fan 1367 »

FrugalConservative wrote: Tue Aug 20, 2019 8:02 am I never understood these questions, I find them quite disingenious.

You are worth 5mm and you are asking if you are okay financial?

OP, Do you not see an issue with that ?
I appreciate the help with questions. Sometimes even talking about a problem or putting it down on paper can help solve it. Thank you Bogleheads for taking my questions seriously.

When you have a lot of savings that gives a lot of choices, and there is an incredible amount of wisdom on this website.
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."
PhilosophyAndrew
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Joined: Sat Aug 13, 2016 10:06 am

Re: Are we financially okay?

Post by PhilosophyAndrew »

OP, as long as you retain your job, and as long as your job provides health insurance benefits for your family, you are financially okay even if your wife never works again.

If you lose your job, it would be prudent to cut back on your expenses during the time you were unemployed. But with your level of consumption there it shouldn’t be hard to find ways to consume less when needed.

If you aren’t concerned about leaving a large legacy for your children, you could probably retire now as long as healthcare costs weren’t prohibitive and you were willing to adjust consumption modestly when market conditions made that prudent.

Since you plan to keep on working, your level of assets is fine, and you can male your financial situation by improving your asset allocations.

Good luck! I’m sorry your wife faces the trauma of a job loss.

Andy.


takeabiteoflife wrote: Sat Aug 17, 2019 9:17 pm Me 48 yo, DW 46 yo, 11 yr old, 8 yr old
We live in a VHCOL area in East Coast
Monthly expenses are ~$13,000-14,000 per month (~$6K for mortgage and property tax)

Investments:
Cash/MM/CD - $2M @ ~2% interest rate or ~$40K interest income/yr
Stocks - $2M (~$1M in 401K/ROTH/IRA and about $125K in 529)
Bond - $100K
Mortgage Debt of $800K (equity of ~$600K) @ 4%

Wife was just laid off and got 3 months of severance. It’s unclear when she'll find another job and for what level of compensation.
I really enjoy my job in financial services and gross income is $200K per year with potential for 15% annual cash bonus.
We do not plan to move to a LCOL area since we love our neighborhood and great public schools.
Plan would be to still max my 401K (4% employer match) but try to breakeven or be slightly negative on one income.

We obviously need to work on our asset allocation and were hoping for a market selloff for a better entry point.

Are we financial secure as long as my income stream is steady?
What are your suggestions to be more financially secure?
Bacchus01
Posts: 3182
Joined: Mon Dec 24, 2012 9:35 pm

Re: Are we financially okay?

Post by Bacchus01 »

8foot7 wrote: Tue Aug 20, 2019 8:02 am
Bacchus01 wrote: Tue Aug 20, 2019 7:02 am
8foot7 wrote: Mon Aug 19, 2019 8:37 am
Bacchus01 wrote: Mon Aug 19, 2019 7:43 am
veindoc wrote: Sun Aug 18, 2019 9:42 pm

Why do you have so much in cash? I would pay off the house today and create some breathing room. How much are your property taxes?
Alternatively, I would never advise paying off the house. Your cash reserve gives you huge flexibility.

Refinance it.
He'd still have 1.2M in cash after paying it off. How much flexibility do you need, really? If he were cash poor I'd totally agree with you but mathematically it makes no sense to have 2.5 times your mortgage balance in cash earning half of what you are paying on your loan.
That’s your opinion. More flexibility is better than less. That’s mine.
Well, the math is not my opinion; it's fact. He's falling behind to the tune of mortgage rate less return on cash. It's an expense of $16,000 a year. There's no argument to be had about that math; it is what it is.

But yes, what you and I think about what he should do about it is our opinion. IMO $16k is an expensive price to pay for "flexibility" when you would have over a million in cash left after ridding yourself of the expense.
Your math doesn't matter. He's not falling behind when your alternative is to fall WAY behind by paying $800K all at once.

$16K is not a "price to pay" when the alternative to that "price to pay" is $800k. How does that math work out for you?
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8foot7
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Re: Are we financially okay?

Post by 8foot7 »

Bacchus01 wrote: Tue Aug 20, 2019 8:25 am
8foot7 wrote: Tue Aug 20, 2019 8:02 am
Bacchus01 wrote: Tue Aug 20, 2019 7:02 am
8foot7 wrote: Mon Aug 19, 2019 8:37 am
Bacchus01 wrote: Mon Aug 19, 2019 7:43 am

Alternatively, I would never advise paying off the house. Your cash reserve gives you huge flexibility.

Refinance it.
He'd still have 1.2M in cash after paying it off. How much flexibility do you need, really? If he were cash poor I'd totally agree with you but mathematically it makes no sense to have 2.5 times your mortgage balance in cash earning half of what you are paying on your loan.
That’s your opinion. More flexibility is better than less. That’s mine.
Well, the math is not my opinion; it's fact. He's falling behind to the tune of mortgage rate less return on cash. It's an expense of $16,000 a year. There's no argument to be had about that math; it is what it is.

But yes, what you and I think about what he should do about it is our opinion. IMO $16k is an expensive price to pay for "flexibility" when you would have over a million in cash left after ridding yourself of the expense.
Your math doesn't matter. He's not falling behind when your alternative is to fall WAY behind by paying $800K all at once.

$16K is not a "price to pay" when the alternative to that "price to pay" is $800k. How does that math work out for you?
LOL, my math does matter but you are not demonstrating an understanding of how assets and liabilities play together.

Paying off a debt with current assets is a balance sheet transaction. It's moving money around on a piece of paper. The plusses and minuses on his personal net worth statement at the end of the day still equal the same as they did before. Retiring debt is not a price to pay in and of itself.

The price to pay here is the continuing cost of carrying debt at a higher rate than the return on assets one holds. And it is indeed a choice because he can retire his existing liability with his assets - this is not a new cost; he's already taken the loan; it's already on his books; this is not a price -- and avoid falling behind to the tune of $16,000 a year in interest paid out.
wolf359
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Joined: Sun Mar 15, 2015 8:47 am

Re: Are we financially okay?

Post by wolf359 »

8foot7 wrote: Tue Aug 20, 2019 8:40 am
Bacchus01 wrote: Tue Aug 20, 2019 8:25 am
8foot7 wrote: Tue Aug 20, 2019 8:02 am
Bacchus01 wrote: Tue Aug 20, 2019 7:02 am
8foot7 wrote: Mon Aug 19, 2019 8:37 am

He'd still have 1.2M in cash after paying it off. How much flexibility do you need, really? If he were cash poor I'd totally agree with you but mathematically it makes no sense to have 2.5 times your mortgage balance in cash earning half of what you are paying on your loan.
That’s your opinion. More flexibility is better than less. That’s mine.
Well, the math is not my opinion; it's fact. He's falling behind to the tune of mortgage rate less return on cash. It's an expense of $16,000 a year. There's no argument to be had about that math; it is what it is.

But yes, what you and I think about what he should do about it is our opinion. IMO $16k is an expensive price to pay for "flexibility" when you would have over a million in cash left after ridding yourself of the expense.
Your math doesn't matter. He's not falling behind when your alternative is to fall WAY behind by paying $800K all at once.

$16K is not a "price to pay" when the alternative to that "price to pay" is $800k. How does that math work out for you?
LOL, my math does matter but you are not demonstrating an understanding of how assets and liabilities play together.

Paying off a debt with current assets is a balance sheet transaction. It's moving money around on a piece of paper. The plusses and minuses on his personal net worth statement at the end of the day still equal the same as they did before. Retiring debt is not a price to pay in and of itself.

The price to pay here is the continuing cost of carrying debt at a higher rate than the return on assets one holds. And it is indeed a choice because he can retire his existing liability with his assets - this is not a new cost; he's already taken the loan; it's already on his books; this is not a price -- and avoid falling behind to the tune of $16,000 a year in interest paid out.
Or he could invest the $2 Million instead of holding it in cash, and get a higher expected return than the 2% cash is paying him. He'd also get a higher expected return than 4% he's paying on his mortgage.

If he withdraws the mortgage payments from the $2 million, it's the equivalent of an SWR of 3.6%. In other words, the $2 million invested covers his mortgage expense. Your argument is that there's a price to pay by carrying debt at a higher rate than the return on assets one holds. What he should do is upgrade that asset from cash to an appropriate stock/bond mix, giving him a higher expected return. Paying off the mortgage locks $800,000 into a low 4% return.

I think what the OP is actually doing is sitting in cash waiting for the crash. I don't think it's because he's overly conservative, and I don't think he intends to hold the cash forever. In other words, a strategy of investing is more in line with the OP's mindset.

A $4 Million + total portfolio provides lots of options.
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8foot7
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Re: Are we financially okay?

Post by 8foot7 »

wolf359 wrote: Tue Aug 20, 2019 9:29 am

Your argument is that there's a price to pay by carrying debt at a higher rate than the return on assets one holds. What he should do is upgrade that asset from cash to an appropriate stock/bond mix, giving him a higher expected return. Paying off the mortgage locks $800,000 into a low 4% return.

I'm absolutely with you there, and I should have been clearer. I think it's counterproductive to simply hold the cash and unless he's just gotten a big windfall, it's probably taken a while to accumulate $2 million in cash, which makes me think he's wanting to hold it. Either invest it or retire the debt. Both are more productive uses of the capital than it just sitting there being eaten away by inflation and other interest payments.
bloom2708
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Re: Are we financially okay?

Post by bloom2708 »

If you have close to $5 million and are asking this group "Are we financially OK?" then something probably "feels" tight.

Job loss equates to a short term emergency (even if you have $4.7 million). Ask NBA, NFL and other pro-sports players if they can have spending problems while making millions and millions.

I agree they shouldn't have both all that cash and a $800k mortgage. Even investing at 40% or 50% stocks would be reasonable.

Many of us could/would retire with those assets. Dump the expensive house, buy a nice $300k home (or 2) for cash in a LCOL area. Invest with 40-60% stocks. Low cost, tax efficient. Sail off into the sunset sipping your favorite beverage.

Certainly no need to panic, but probably a good time to re-evaluate goals, reset spending and re-focus priorities and future plans.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
Bacchus01
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Re: Are we financially okay?

Post by Bacchus01 »

wolf359 wrote: Tue Aug 20, 2019 9:29 am
8foot7 wrote: Tue Aug 20, 2019 8:40 am
Bacchus01 wrote: Tue Aug 20, 2019 8:25 am
8foot7 wrote: Tue Aug 20, 2019 8:02 am
Bacchus01 wrote: Tue Aug 20, 2019 7:02 am

That’s your opinion. More flexibility is better than less. That’s mine.
Well, the math is not my opinion; it's fact. He's falling behind to the tune of mortgage rate less return on cash. It's an expense of $16,000 a year. There's no argument to be had about that math; it is what it is.

But yes, what you and I think about what he should do about it is our opinion. IMO $16k is an expensive price to pay for "flexibility" when you would have over a million in cash left after ridding yourself of the expense.
Your math doesn't matter. He's not falling behind when your alternative is to fall WAY behind by paying $800K all at once.

$16K is not a "price to pay" when the alternative to that "price to pay" is $800k. How does that math work out for you?
LOL, my math does matter but you are not demonstrating an understanding of how assets and liabilities play together.

Paying off a debt with current assets is a balance sheet transaction. It's moving money around on a piece of paper. The plusses and minuses on his personal net worth statement at the end of the day still equal the same as they did before. Retiring debt is not a price to pay in and of itself.

The price to pay here is the continuing cost of carrying debt at a higher rate than the return on assets one holds. And it is indeed a choice because he can retire his existing liability with his assets - this is not a new cost; he's already taken the loan; it's already on his books; this is not a price -- and avoid falling behind to the tune of $16,000 a year in interest paid out.
Or he could invest the $2 Million instead of holding it in cash, and get a higher expected return than the 2% cash is paying him. He'd also get a higher expected return than 4% he's paying on his mortgage.

If he withdraws the mortgage payments from the $2 million, it's the equivalent of an SWR of 3.6%. In other words, the $2 million invested covers his mortgage expense. Your argument is that there's a price to pay by carrying debt at a higher rate than the return on assets one holds. What he should do is upgrade that asset from cash to an appropriate stock/bond mix, giving him a higher expected return. Paying off the mortgage locks $800,000 into a low 4% return.

I think what the OP is actually doing is sitting in cash waiting for the crash. I don't think it's because he's overly conservative, and I don't think he intends to hold the cash forever. In other words, a strategy of investing is more in line with the OP's mindset.

A $4 Million + total portfolio provides lots of options.
Bingo. Some people don't seem to understand basic math.
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willthrill81
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Re: Are we financially okay?

Post by willthrill81 »

wolf359 wrote: Tue Aug 20, 2019 9:29 amIf he withdraws the mortgage payments from the $2 million, it's the equivalent of an SWR of 3.6%. In other words, the $2 million invested covers his mortgage expense. Your argument is that there's a price to pay by carrying debt at a higher rate than the return on assets one holds. What he should do is upgrade that asset from cash to an appropriate stock/bond mix, giving him a higher expected return. Paying off the mortgage locks $800,000 into a low 4% return.
The only way that the OP seems likely to get a higher nominal return than 4% is with stocks. At their current yields, bonds are unlikely to do it unless we're talking about high-yield bonds that carry a significant portion of the same risk as equities.

If the OP didn't have a mortgage, should he take one out right now at 4% to buy stock? I have a hard time envisioning that to be a good choice.

Now it's certainly true that stocks could do better than 4% nominal over any given period of the future. But having a mortgage in retirement increases sequence of returns risk unless several conditions are met, the most essential of which being that the fixed income one is invested in has a higher yield than the mortgage interest rate, which is certainly not true in this instance. Otherwise, if stocks tank and don't recover quickly, the OP would still be left having to pay for the mortgage every month, which is a classic example of sequence of returns risk.

Leverage increases potential rewards and risk.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
bradpevans
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Re: Are we financially okay?

Post by bradpevans »

takeabiteoflife wrote: Mon Aug 19, 2019 4:23 pm I've made edits to the original post to provide more details:

Investments:
Cash/MM/CD - $2M @ ~2% interest rate or ~$40K interest income/yr
Stocks - $2M (~$1M in 401K/ROTH/IRA and then $125K in 529)
Bond - $100K
Mortgage Debt of $800K (equity of ~$600K) @ 4%

Despite being negative cash flow until DW finds a job, we would ideally prefer to continue maxing out my 401K and investing in 529 (maybe $1-2K/month) as part of putting more cash into stocks. Is that a bad idea?

Also, we will try to examine our expenses and see if we can reduce it by $2-3K/month.

Thanks for all the advice!
I’d max all retirements accounts. Bleed of the $2MM cash to accommodate loss of one salary and increased retirement funding
Basically converting the cash in after tax to equities in tax deferred / tax free (Roth / back door Roth / mega backdoor Roth)
Those yearly limits of potential saving expire each year - you can’t play catch up like you can your mortgage

The mortgage will get paid off. More money into retirement sooner means it doubles sooner. And doubles again sooner...
NoFred
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Re: Are we financially okay?

Post by NoFred »

Bacchus01 wrote: Tue Aug 20, 2019 4:56 pmBingo. Some people don't seem to understand basic math.
Including the OP based on threads stated subject.
-NoFred
Topic Author
takeabiteoflife
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Re: Are we financially okay? - Update

Post by takeabiteoflife »

Thanks to all the feedback from the BH community, we took some actions based on the great advice.

• We cut our monthly expenses to $9-10K (partly helped by refinancing to 3.25% from 4%)
• Our investment portfolio is still comprised of ~$2M of cash in MM/CDs, ~$2M in stocks (half in retirement accounts and includes $150K in 529), and bonds of ~$100K
• Home mortgage debt of $790K (equity of ~$610K)

With COVID-19, we now think it may be prudent for DW to be a SAHP for a while and reassess down the road. It has been so helpful to have a parent available as the kids were home with remote learning and there’s very little clarity on what the new school year will look like when summer ends.

I have been able to WFH and salary remains $200K (this year’s bonus will likely be a big fat zero). As long as I’m employed, I will max my 401K and get a 4% employer match. Our plan is to save 401K+match and ~$18K in 529 for annual savings of ~22% (higher if a bonus is paid).

The goal is to live on my base salary, slowly invest our cash as savings rates plummet, and hope our portfolio will gradually grow over time.

Is this a realistic goal? What else should we be doing to cement our financial security?
Jags4186
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Re: Are we financially okay?

Post by Jags4186 »

With $4 million in the bank I think you're well beyond fine. You are financially independent. You have no need to work anymore.

Depending on how slowly you intend to invest your substantial cash reserves, and since you haven't invested it since last year, you may want to consider just paying off the mortgage and get the guaranteed 3.25% return. This is far superior than having the money sit in a money market account earning 1%. Assuming a 30 yr mortgage, paying it off will eliminate $3400 in expenses bringing your monthly expenses down to $6500 or so on an income of $200,000. You'd have the ability to have your wife be a SAHM, and still save a very significant portion of your income, which based on the tone of your posts, would substantially ease any financial anxieties you have.

Well done, incredible amounts of savings.
Last edited by Jags4186 on Fri Jun 26, 2020 1:46 pm, edited 2 times in total.
IMO
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Re: Are we financially okay? - Update

Post by IMO »

takeabiteoflife wrote: Fri Jun 26, 2020 1:18 pm Thanks to all the feedback from the BH community, we took some actions based on the great advice.

• We cut our monthly expenses to $9-10K (partly helped by refinancing to 3.25% from 4%)
• Our investment portfolio is still comprised of ~$2M of cash in MM/CDs, ~$2M in stocks (half in retirement accounts and includes $150K in 529), and bonds of ~$100K
• Home mortgage debt of $790K (equity of ~$610K)

With COVID-19, we now think it may be prudent for DW to be a SAHP for a while and reassess down the road. It has been so helpful to have a parent available as the kids were home with remote learning and there’s very little clarity on what the new school year will look like when summer ends.

I have been able to WFH and salary remains $200K (this year’s bonus will likely be a big fat zero). As long as I’m employed, I will max my 401K and get a 4% employer match. Our plan is to save 401K+match and ~$18K in 529 for annual savings of ~22% (higher if a bonus is paid).

The goal is to live on my base salary, slowly invest our cash as savings rates plummet, and hope our portfolio will gradually grow over time.

Is this a realistic goal? What else should we be doing to cement our financial security?
It seems like there is the valid argument to not pay off one's mortgage because one could make significantly more taking those funds and investing in something with the potential for higher returns (and higher risk).

I'm a bit confused on your situation with your $2M cash in MM/CD's, that seems to go against the above?

Ultimately, it seems like you are conservative, which is fine. But you noted that you fully plan to stay in this home forever, wouldn't it make sense, especially in your situation to go ahead and pay off the mortgage?

What would your new expenses be if you did not have a mortgage? You could still re-invest the mortgage payment into something. Not to recommend "market timing" but some might argue there could be a correction coming in the market, and wouldn't this be a way to dollar cost average money into the stock market?
MBB_Boy
Posts: 215
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Re: Are we financially okay?

Post by MBB_Boy »

I have to agree with the past couple of posters. Going over this thread starting in August, you were holding onto 2M for a "better entry point". Leaving aside how ill advised this is, that entry point actually came 6 months later. And as the market dropped 30-40%......you still didn't enter.

It should be apparent at this point that you're never going to be comfortable investing this money. Do something with it, anything, except leave it in basically cash. Either pay down the mortage or increase your bond position. Do something that is going to beat the rate of cash
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