Long time lurker- first time poster who would like an overall review of what I have set up financially.
First off, I would just like to say how much I really appreciate this community and how much information I have gleaned from it. I would also like to speak to all those people who are underwater in student loan debt or other types of debt and just say that there is light at the end of the tunnel. Back when I was in school with 90k of student loan debt with a new wife and new baby... I will admit it was hard to see that light. But here I am 9 years later moving on with our lives. For me, the solution was thinking outside of the box and being open to new situations and work opportunities. It took us moving halfway around the world, leaving my family there and then me moving alone halfway around the world again for a year to finally make enough money to pay off these loans. If we hadn't been willing to move out of our comfort zones we still would have been living paycheck to paycheck (at the best times) with me laying awake at night wondering what the heck I was going to do. I'm just lucky my awesome wife was up for the task of managing our kids with me being gone. So yeah, it can be done, just have to be willing to look outside the box because there are opportunities out there.
So I am about to wrap up a year long overseas tour where I was able to dramatically change my families future. However, as I return home (a location still located outside the US) I want to ensure we don't fritter away our hard earned cash. I am the only earner in our family and my wife and I would like to adopt a lifestyle of what I refer to as a fiscally-responsible-enjoyer-of-life. Meaning, we want to be responsible and save for the future, but as we live overseas we want to be able to responsibly explore the world around us while dragging our 4 begrudging kids through the airport!
Stats:
- Age 33
- Salary (when I return to the real world): $69,960.
- Housing is paid for in non-taxed allowances.
- Extra $1,000 a month non-taxed living allowance
Accomplishments for the year overseas:
- Paid off over $80,000 in student loan and CC debt (debt free now).
- Contributing 15% of salary to retirement (combination of 401k, Roth and pension): $51,400 saved so far.
- Will have $15,000 put away in an American Express Personal Savings account (1.75% apr).
- Will have $15,000 available for other uses (i.e. initial house down payment investment).
Proposed way forward:
- Continue with 15% retirement contributions.
- Budget responsibly for travel expenses and our eventual return to the US.
- Save for a house down payment: $1,200/mo. This is the real question I am battling with. We don't have any intention of buying a house for about the next 10 years. So where do I place this money where I can contribute monthly that will do better than 1.75%? As a majority of my income is not taxed and we have way to many kids, my upfront taxes are very low. I have been looking at wealthfront for long term investments since I feel like over 10 years I can absorb some market fluctuations. Am I off base on this?
- Potentially put away seed money for the kids. We are not stuck on our kids attending college so I don't want to tie it up in a 529. I am very much of the school of if you want college then you better be doing your damnedest to hustle for grants, scholarships, military service (I paid for school with Post 9/11 GI Bill, wife came to the marriage with the loans) etc. I also don't have a problem putting the money away for them to us opening a business or other worthwhile project. Regardless, saving for them is not near the highest of our priorities, giving them an enjoyable childhood and roof over their heads is.
Again, I really appreciate the help and motivation this community has provided and if anyone has any questions regarding what I have done please let me know.
Submitted July 08, 2018 at 10:03AM by not_a_day_away https://ift.tt/2J3QgPU
