Good evening all,
As the title says, I am 37 years old and my wife is 27. My wife and I are expecting out first and possibly only child any day now (in delivery room now).
We work overseas. I currently do not pay/owe state or federal tax as a couple contractor. We are planning on working overseas for 5 more years before taking a job back in the States. I am expecting the stateside job will be 120,000 when I do go back as a government job (GS-13 maxed out). I am assuming it will be in an area where a nice house will be 350,000. I will not move back to a high cost of living location such as Hawaii, California, or DC. Here are the numbers.
0 debt 0 assets back in the States 130,000 in 401k 130,000 in land (wife's foreign country; retirement land) 70,000 in treasury direct (2.46 interest) 30,000 in savings account 12,000 in a Vangaurd REIT 5,000 in checking to pay monthly bills
I max out my 401k. I am not concerned about my wife putting in money to hers.
Monthly money after 401k, housing and other life expenses all after taxes (OASDI and wife still owes regular tax)
Monthly deposit s 2,400 to treasury direct (wife's whole income) 2,000 to Vangaurd REIT 200 to sons Vangaurd life time fund 4,000 extra
My goal is to buy a house in full when we go back (250,000). I would then like to build our dream home over a 2-3 year period for 350-400. Once it is built I would rent the previous house we bought. I would then like to buy another 250,000 house to rent another few years after this. I never want to have have more than one mortgage that is no more than 100,000.
I plan on working 18 more years now that we are having a son. Although my career revolves around the government, I would like to build a large real estate portfolio that I can pass on to him (if he becomes business minded).
Although I understand 130,000 is a very good income once I go back to the States, I will never have these next five years again where I pay no taxes and able to save this much in cash.
When we move back to the States I am assuming to use the treasury direct and REIT for the house(s) we want.
Is there a better way to allocate money or invest?
Where should the 4,000 a month extra go. I'm tempted to just put another 2,000 in treasury bills and 2,000 in the REIT.
Also, if the market crashes in the next five years I plan on moving nearly all of the treasury direct to the stock market through some ETF. If that were to happen, I would probably extend another few years overseas.
Thank you for any thoughts.
Submitted May 11, 2019 at 01:33PM by ExpatMarine001 http://bit.ly/2HjNrew
