I've been on this sub for years, know how to follow the directive, etc. The reason I'm posting here is because I've gotten to the point in the directive where I'm at the end and don't know how to proceed. For some context:
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monthly take-home is 2500. I have about ~650 leftover after all necessary expenses. Unless something drastically changes there is little chance that my income will change in the short-term.
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I have 19k in checking, 1.5k in savings, 5k in HYSA. For cash on hand.
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I have 33k in a brokerage account set aside for purchasing a house. 38k in a 401k and 16k in a Roth IRA.
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my only debts are 12k in student loans, which for the time being aren't due until Sept. they are 3-4% interest.
Due to various life circumstances, I haven't added any money to my brokerage account or retirement in almost a year. I was in between jobs, moving out, and other personal issues that caused me to not spend money. Now that things have settled, I've determined that I can put about 12-14k comfortably, maybe even 15k if I'm pushing it.
The main reason I'm stuck is because I'm torn between deciding to pay off the loans ASAP or apply that money towards buying a house when my lease is up a year from now. I thought of a few options:
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put $10k in the HYSA, which will allow me to pay off the loans pretty much instantly or wipe out a good chunk of it once they're due again. Then split the leftover between retirement & the brokerage account. This is probably what I'll do if I don't think I can buy a year from now.
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Put $10k in the brokerage account instead, which will give me about $43k right now with some time to grow. Returns on this account are 3% this year and ~15% over the past year. So I wouldn't mind keeping it in there & pulling it out a few months before I commit to buying a home, if that's the route I take.
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cut out the overthinking, and just split the 12k evenly between all 3. Savings, brokerage, and IRA. The only problem is, I hate the idea of tossing 4k into retirement that I could better use right now. I already have 54k at 27 y/o and that's without a year of contributing. So I don't really know if that should be a priority for me.
The issue with me trying to buy a house is that I live in an expensive area, my income is ok at best, & I'm single so I don't have anyone I can count on splitting costs with me. On the flip side, I have a 99% certainty on where I want to live long-term, as its something I've been researching for years. I know the area, love the area, & don't mind committing to it. So I figure, why waste the money on rent when I know where I want to be?
Any input good bad or in between is appreciated.
Submitted June 26, 2021 at 09:59AM by ITJobsearching https://ift.tt/3vXJJi7
