If you expect to finance your mortgage with renters, don’t treat this as a simple home mortgage. It’s a business loan and investment and should be treated as such.

Is $2,500 the only income to pay down these amounts?

If you invested $70000 in the S&P 500 at the beginning of 2008, you would have about $256,352.88 at the end of 2022, assuming you reinvested all dividends. This is a return on investment of 266.22%, or 9.15% per year.

This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 169.77% cumulatively, or 6.92% per year.

If you used dollar-cost averaging (monthly) instead of a lump-sum investment, you'd have $328,833.90.

[removed]

Yeah, I wouldn't have any idea how to tell if it's low. When I look at those charts, my brain feels like it's frying. I literally have ZERO experience in this stuff. I am so appreciative of everyone's help and kindness towards my lack of knowledge and experience!!

I think she would be at a break even point on the vehicle. This, coupled with her inability to purchase another car lead me to believe keeping the car at it’s fixed interest may not be the worst idea.

Your plan should be to stick it out with your parents for another year (assuming that is an option) and start paying yourself that much “rent” every month into a high yield savings account. Add in a few hundred extra for what it would cost for utilities, cable , etc. to round up to $3k/month. Don’t touch that money for ANYTHING. Consider it gone. That’ll help you adjust to what it’ll be like spending it.

In a year, you’ll have a decent sum tucked away for what may be a falling housing market (depending on your market), which’ll give you options. If you want to rent at that time, you’ll have plenty of reserves available should something happen to your job.

Putting the same amount in every week or month is DCA. The alternative would be waiting until the market seems low, buying a bunch of stock, and then not buying any more for a long time until the market seems low again

I think DCA generally performs better / is safer. Personally, i do it - I have it set up so a portion of every paycheck is deposited into my brokerage account and invested.

I don’t think so. I bonds rates are falling and would lock up money for 1yr and they lose 3mo interest by cashing out before 5yr.

With the time frame being so short they could put extra money into 8wk T-bills (around 4.25% now) but it would be a hassle for a small benefit. I think them paying down the mortgage faster is good. Might at well reduce the balance as much as possible before 8% takes effect.

Okay, how do I go about doing the D.C.A.?

As a parent of a 4 year old and 3 year old who has to travel ~20-40% for work, I can assure you that the flexibility you have has quite a lot of value. Sounds like your kids are perhaps near same age since you mention both having to attend IEPs and that you’re paying childcare and kids aren’t in school.

It definitely sounds like you could make more elsewhere. But I’d agree that it sounds like it would be easier to make that move in 1-3 years or whatever it is until kids are in full time school.

You’re not hurting for money, you’re saving plenty for retirement, and delaying a move to higher income a little longer (combined with no longer having daycare payments) will allow plenty of extra income to achieve your additional goals.

My husband is retired. He's in his mid-60's. He has a retirement account but is no longer contributing to it. I do not have one. I would like to start one, though, which is why I'm needing some guidance. I'm trying to provide as much info as I can while still maintaining some degree of anonymity on the internet. What other information do you guys need? I'll see what I can answer!

[removed]

Idk. Try this.

https://edfinancial.com/TOOLS/Loan-Repayment-Calculator

[removed]

Facts. I think that’s what they tell everyone about everything in r/relationshipadvice tho. I will have the car and budget conversation with her again. Thanks

So the more aggressive your investment, the higher the likelihood of having a higher "payout" so to speak? I don't know the exact term.

It just has to be earned income.

Fighting no, clarifying and working to update any indescrepencies, Yes! This is your association, you are a part of it and third party management is accountable to the homeowners and the board. The HOA can have a huge impact on your property values and the overall desirability of the community. Get involved, ask for clarity, work to get the documentation or website updated. Lawsuits or even just the management costs associated with working these out in an owner by owner bases come out of your pocket.

I believe that it was for a new loan but it was to include her car note too. Not entirely clear, I would have to ask her

Awesome! Thank you!!

You both work from home. Why do you need before and after care? My husband works from home and I occasionally do, but we put our kid on the bus and get her off the bus. She does her hw and gets a snack and plays while we finish work. She’s second grade, but we survived 2 years of full virtual prior with us both working. You could save money just by getting them on and off the bus yourselves.

Either way, put this in a Roth IRA.

Although, it's not recommended to withdraw money from your Roth IRA for a home purchase, you can do it with tax benefits.

> Roth IRA withdrawal rules allow you to take out up to $10,000 earnings tax and penalty-free as long as you use them for a first-time home purchase and you first contributed to a Roth account at least five years ago.

JFC, man. Save up $6M like your dad and then buy an annuity and that will tell you how much you can spend every year. If you have a spouse, get it with survivorship. Problem solved. Now pay me 1% of your $6M annually.

$95k in Alabama seems like really good money and presumably that number will continue to go up.

I personally would go for the $282k house that you really want even though in effect it’s 50% of your net pay. House price tags are lowering bc the IR rates are higher.

It def is scary buying when you know you will be spending 50% net on the housing but I think it’s worth it because when rates do go back down the values will go up again as more qualified and willing buyers hit markets again.

When I ( childless adult) bought In March 2020 my mortgage payment and utilities were 50% of my net but I was fairly certain in my city of Sacramento,CA demand during the pandemic would push prices up.

I also jumped into my purchase then because I was offered in March 2020 a 3.5% when in December 2019 I had almost bought at 5.5%.

In 2021 I refinanced down to 2.5% and dropped my PMI and my whole mortgage by $300 and that year I got a 5% raise and then in 2022 a 10% raise. Now my total housing cost with all utilities included is 30% of my net pay and I am very happy I bought when I did.I’d buy now and refinance later.

Mind you I am now married and the housing expense is now only 16% of mine and my spouses combined net pay. It’s even more affordable now.