M28
Debt:
-House; $215,000 @ 6.5%, $120k equity
-No student loan, no car
Income:
-Outgoing job: $95k + 3% match, WFH
-Incoming job: $103k + 3% match + overtime eligible, FT in-office
Deductions:
-Single
-No children
-15% Roth
Assets:
-Rainy Day Cash: $25,000
-House Cash: $6,500
-Car Cash: $7,500
-Gold: $7,500
Investments:
-Roth 401k: $80,000
-Taxable Brokerage: $15,000
Background / Question: For the last year or so, I was increasingly nervous about my job security, and began inflating my cash holdings, in preparation for a layoff.
Fortunately, I have been able to secure a new position which spares me from being laid off, and also gives me an increase, and better compensation related benefits. The only trade off is I will be giving up WFH and heading to the office every day with about a 75-90 minute commute (mostly spent on train, so not sitting in traffic ).
My question is this: do I priortize the paying down the house, or max out my tax-advantaged options? When I purchased the home, my income was about $88k, and I have increased that to $103k. I am starting to feel the breathing room, but I am still a bit nervous about how high my monthly payment is. That being said, I am confident my income will continue to rise. I have considered saving $10-20k and doing a recast to lower my payment. Any advice would be greatly appreciated.
New Job, Put Increase Towards House, or Invest?
byu/Odd-Recognition478 inpersonalfinance
Posted by Odd-Recognition478
1 Comment
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
debt or invest: https://www.bogleheads.org/wiki/Paying_down_loans_versus_investing https://reddit.com/r/personalfinance/comments/16jcmnh/_/k0qox0x/?context=1 https://reddit.com/r/personalfinance/comments/zssug0/_/j1ddljd/?context=1