I'm looking for some feedback on my financial plan going forward, and some advice on how to manage things in the future. Here's a little bit of background:
I've got 10 years in the military and I'm finally moving locations to attend grad school and commission as an officer. I've been really fortunate to have good timing, and the home I bought in 2014 for $210,000 (~$180,000 pay-off today) has 5 offers, the highest at $397,000. The net profit will be a bit under $180,000.
My wife owes $92k (variable, approximately 6-8%) for her Nurse Practitioner PhD, and we owe $18,000 (2.49%) on my pick-up truck. Our other vehicle will need to be replaced in the next few years, but was paid off with the first bonus I received when I joined the military. We otherwise have no debt and $23,500 in a savings account. The cost of living here at my new location is significantly less, so we've been able to rent a house with all utilities included for less than my old mortgage and don't have to pay the wild Seattle cost of living for food/utilities/gas. We should be able to push to $30k in savings before the beginning of next year.
With regards to home sale profits: My plan is to first pay off my truck. We're going to wait until after the US elections to see if anyone takes action on their promises for school debt relief programs (assuming a Democrat is elected). If nothing comes to fruition, we'll pay that debt as well.
All debt paid, we'll be left with very roughly $70,000 remaining profit on the home, and $23,000 in savings (plus whatever we save over the next few years).
Here is where I'm looking for advice: This duty station for school is only 1 year, which is why we're renting. The next duty station will be on the job training, and again for only 18 months. We plan on renting there as well, especially as I think the housing market is going to cool over the next 3-5 years. With all of the admin time for moving, we're looking at sitting on $93,000 for three years before it make sense to buy a house again. If there is some debt relief, it'll be even more.
Does what I am doing make sense? How do I simultaneously maximize this cash, maintain liquidity for a home purchase in 3 years, and minimize risk given the direction of the economy over the last few months? Is there anything worth learning about (products wise), that will help me with this situation?
Thanks.
Submitted March 18, 2020 at 10:07PM by Rippen2 https://ift.tt/3b8BVQs
