DTI ratios are generally done using gross income because peoples’ deductions and taxes vary widely depending on their circumstances. Using gross income, his DTI is 26%.

OP, if you have kids requiring expensive childcare, this is not doable. Otherwise, it will be doable but a bit tight. I think the odds are that mortgage rates will come down in the next few years, though, so just be ready to jump on a refinance whenever it makes sense, and that will free up some more room in the budget.

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I agree.

I just use Chase's Credit Journey. Seems to give a decently accurate score, and I like how it breaks down all my credit accounts and their balances so I can see if something increases and I didn't authorize it.

You don’t make enough or too little to get the penalty, and there’s no penalty in CO. I don’t think you need a prenup since your incomes are similar

Have you lived together? Are you sharing expenses fairly and do you have similar spending/saving habits?

Do either of you have more significantly more income growth potential than the other?

I enjoy Capital One’s 360 performance savings. No fees, very big name bank with an easy app and website to navigate. APY of 3.40% currently

Since neither of you have significant assets, there is no reason to get a pre-nup. Its purpose is to protect the assets that you have going into the marriage. Anything you accumulate together during the marriage belongs to you both.

I was once told that when you have your budget accounted for, that you should consider any raise to be 1/2 savings for the future and 1/2 blow it money.

This, is obviously a very case by case point... But if you're obsessing over your savings then chances are you are well aware of your actual needs.

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That's just annual savings, in terms of present value (assuming he goest through the whole loan this way) it's about $10,000 in savings. PV of $800 payments a month for 11 ish years at 4.61% compared to $95000 on the loan.

It looks like this is not just a bad idea, it is a terrible idea. Thank you! 😂

One thing you can legitimately do is adjust your withholding so you get either a small or no refund, which will put more money in your pocket earlier.

How long are you going to hold it? 1mo TBills will get you 4.6% with no state taxes (which increases your effective rate)

Yep, one big payment is best. I made a few sub accounts for budgeting purposes but transfers of that size are fine.

I just looked at the Kelly blue book value and it's 30850 so roughly the same as my loan assuming it sells for that.

You should still be able to get unemployment. Severance is basically just a bridge to unemployment so you at least get your full pay for a bit.

Did you have a severance clause in your contract? If not and you’re at-will then you’re not entitled to any severance.

More money you make in interest, more you dollars you pay in taxes. You will never net less money from moving to a high earning account.

Interesting, good to know. I have always claimed 0 over the years.

There is a very small risk of loss in a MMF (but if a government money market at vanguard goes bust, we’re probably all dead)

Not only can you be hit with penalties, the IRS can contact your employer and force them to withhold taxes for you.

https://www.irs.gov/businesses/small-businesses-self-employed/withholding-compliance-questions-and-answers

I think they have bonuses on checking and savings right now.

Save more for retirement. You can do more than 6%

The underwitholding penalty is currently 7%, it varies semi-annually based on the federal short term rate.

If you routinely underpay, you will be subjected to backup withholding and the IRS will require your employer/bank/brokerage/etc. to withhold from all income irrespective of your instructions.

I have no idea. You can probably find them on the IRS's website.