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