I’m 30 years old, and I just accepted a promotion that comes with a 100k base salary and 12% bonus. My student loans are paid off, and I have zero credit card debt. I fully max out both my 401k and Roth IRA every year. Up until this point in time I have been renting, and I am now looking at buying a house. My car is getting older, and I think it may last me another year.
My current plan is to buy a house for roughly $150k this year (2019), and replace my car with a lightly used luxury SUV for ~$30k next year (2020). My question is: Should aggressively pay off both house and car loans, or should I continue to put money away for savings (Vanguard Index)?
Without any big changes to my budget I have the capacity to pay off the car loan in 2 years, and the House in 5 or less. I like the idea of having zero debt, but I know I’ll be minimizing investments outside of retirement savings. I would still be maxing out 401K and IRA. Any thoughts?
Submitted January 20, 2019 at 08:56AM by Debt_or_invest http://bit.ly/2FDrXLl
