I'm new to the sub and have read the wiki in depth. Lots of great information!
Some financial background... I'm 29, my salary before taxes is $95k, I contribute 5% to my 401k (at around 67k right now), and I have no debt other than my 4 year car loan at $475/mo. My wife makes $55k and has no debt other than school loans at around $300 a month.
We have 6k in savings and plan on trying to buy a house next fall with an FHA loan. The savings goal is 20k. I know the gold standard is 20% down, but we are looking to start a family soon and don't forsee saving for a few years. We also don't want to get screwed on interest rates as they rebound. So it will most likely by 3.5% down. Our house price ranges would probably be around 225-250k.
My question is, should I be maxing my 401k this year or wait until after we buy a house? Ideally I know I should, but with the tighter time line to purchase a house, the savings might be better for a down payment?
Additionally, my wife doesn't have a 401k but her employer offers stock sharing options. When we get a spare 1k, I'm planning on setting her up with a Roth IRA from Vanguard.
Does my logic sound okay? I think the best answer is to save until 20% for a down payment, but I just don't think that will happen.
Submitted January 06, 2017 at 07:37AM by the_feds_here http://ift.tt/2jbroZY
