The situation I'm in is that I have no debt, in my upper 20s, married with two kids. My finance breakdown is below:
Emergency fund: 21K
Car fund: 10K
Misc/extra savings: 7K + 3K in checking
Roth IRA: 36K
401K: 5K
No debt
I am contributing 12% to 401K currently, 6% to my HSA account, and maxing out roth IRA every year.
Now, at this rate of contributing 12% to 401K and 6% to HSA, I will be putting in an extra 12K into my savings account from my paychecks from the take home, which I will drain into roth IRA every year in January (6K limit per person, one for me and one for my wife). However, if I wanted to buy a house in the next TEN years, I will have to go down on 401K contrib to the minimum before losing employer match and go down on HSA contrib as well. The housing market in our city is absurd, where a 3 bedroom condo will be anywhere from 800K to a million. 20% down payment will take me 10+ years of saving to have enough to put down, while putting 10% down will take 7 or 8 years. I just can't fathom having to save for SO LONG just to put it into a down payment. After reading this article on how housing prices have not gone up as fast as investment funds, I thought that maybe I just want to rent forever and keep investing in my retirement that has a higher return. I know that owning means you're building your wealth, but can't you just rent until you die if you have enough in your retirement fund? I'm fairly certain we will still be living in this city in the next 3-5 years, but can't guarantee anything beyond that, as we have no family here and might want to move at some point...
Submitted April 30, 2019 at 01:12PM by dyden http://bit.ly/2ZN9xOT
