TL/DR Thorough explanation of my financial situation and request for feedback/tips/advice.
Hi all, long-time lurker, first-time poster. I want some general feedback on how you people, who are much smarter financially than I am, think I am doing with my money management and also solicit any advice you might care to give on how I should be doing things different. I have lately been paying more attention to money management (since I finally started to earn a little bit of money) and am trying to play catch-up. I know I am behind where I would like to be.I am a single 38 year old professional with no children working in higher education for a state university.
GOALS:
-Minimize Adjusted Gross Income (AGI) to minimize student loan Pay as You Earn (PAYE) payment until loans are forgiven
-Be in a financial position to retire by 55
-Pay off house in 15 years
-Provide some college tuition assistance to two nieces
INCOME
-$126,921.60 per year
-$6600 per year rent (a room in my home at $550 per month)
LIABILITIES:
-$160,000 student loans [minimizing payback due to PSLF, I know Dave Ramsey would be mad at me but I’m okay with that, currently paying $580 a month on Pay as You Earn (PAYE)]
-$181,000 in home debt (purchase price $219,900; home currently valued at $330,000) on a 30 year mortgage which originated March 2015 with 3.875% interest, will be able to drop monthly pmi payments when balance is down to either 80% ($175,920) or 78% ($171,522);
-$23,204 in auto debt (purchased a new car last year, I know it was dumb but I have 0% financing and love the car) which I am repaying at $484.71 per month.
ASSETS (excluding home equity and retirement):
-$4200 in Schwab brokerage account (holding equal parts AAPL and VO stock)
-$1200 in Schwab investor checking account
-$800 in Wells Fargo checking
-$400 in Chase checking
RETIREMENT
$5525.35 in Schwab Roth IRA (maxed 2018 contribution) invested in SWYNX
$137,497.39 in TIAA-Cref 401(a)
$34,433.27 in TIAA-Cref 403(b)
$8,851.35 in TIAA-Cref 457(b)
Current investments in the TIAA accounts are split across a variety of the available options. For any of you that have investments in TIAA I would be very interested in your recommendations on investments.
CURRENT STRATEGY
To minimize AGI and maximize retirement I am contributing the maximum amount to my 403(b) and 457(b) accounts. I am paid on a biweekly basis, here is the breakdown of a paycheck:
Gross earnings: $4881.60
Pretax Deductions Total: -$1,918.16
-$32.10 Medical and Dental Insurance
-$340.25 401(a) contribution
-$730.75 403(b) contribution
-$730.75 457(a) contribution
-$65 Flex savings account contribution
-$19.31 Work parking permit
Federal and State taxes, social security, etc.: -$921.62
NET BIWEEKLY PAYCHECK: $2041.82 (2041.82*26/12=) $4423.94 monthly net pay
MONTHLY INCOME: ($4423.94 net salary + $550 room rental =) $4,979
MONTHLY PAYMENTS:
-$1,626.30 house payment ($1265.72 is the payment due, the extra principal reduction is so that I can pay off the house within 15 years of January 2019)
-$566.30 per month in PAYE student loan payments
-$484.71 car payment
-$508.8 all other fixed expenses (cell phone, utilities, gym membership, professional organization dues, spotify, amazon prime, etc., gas, car insurance, etc.)
-$110 contribution to 529 educational savings plan for nieces.
MONTHLY REMAINDER (for food, clothes, travel, etc.=$4,979 - $3201 =) $1,778
QUESTIONS:
- How would you invest the TIAA-Cref account to maximize returns?
- Do you believe my Roth IRA should be invested differently?
- Any other types of saving/investing you believe I should be prioritizing?
- Any other potential AGI decreases you think I might utilize?
- Any other advice in general?
Submitted March 07, 2019 at 11:11AM by Eggman333333 https://ift.tt/2HlcH60
