Hello everyone, I am at last stages of divorce. It’s awful, I hate it. I don’t want it. But it is happening. That being said, ,my financial situation is going to be changing. I’m also going back to school/career change. I know how to live on as little as possible. My question is with what ever money is left where should it go?
I will have support payments, and living expenses. The living expenses are VERY low at the moment thank to generous family giving a place to stay with no time limit. Here is my projected financial situation.
Property #1 - 189K Owed, Zillow worth $389k. Cash flow positive $400. Currently my primary residence so can sell in 8/19 with no tax paid.
Property #2- 235K owed. Zillow worth $411k Cash flow positive $1300.
Roth IRA - $64,000
Home Equity Line of credit @ 5%- $180-$210k. ( I am buying her out of equity with the Heloc)
My question is, do I pay off the loan first, or IRA for the year first, or Emergency fun first? My thoughts lean towards the first 5K a year going to Roth, Then the Emergency fund, then every penny I can find going to debt. But @1300/mo Interest on the Heloc, maybe its best to pay that off as fast as possible. I’m also contemplating selling Property #1 once I hit the no tax time period, and paying off the HELOC. Also Is it a bad idea to save an Emergency fund when I can just borrow it if from Heloc if I need it, and then the money I saved wouldn’t be causing more interest to be paid.
Any thoughts?
Submitted March 13, 2018 at 09:35PM by Captain-No-Slappy http://ift.tt/2FOztTk