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Old 02-08-2013, 11:39 AM   #11
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Re: When the house is paid off... then what?

I have to say...I'm totally jealous! lol We'll both be 30 this year and haven't even bought a house yet. But we're both finally on the same page with the budget and doing well so far. Baby steps.

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Old 02-08-2013, 11:59 AM   #12
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Once the mortgage is paid off we will need to save for retirement. Well need at least 240k
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Old 02-08-2013, 12:04 PM   #13
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Re: When the house is paid off... then what?

Quote:
Originally Posted by Fishie Kisses View Post
I have to say...I'm totally jealous! lol We'll both be 30 this year and haven't even bought a house yet. But we're both finally on the same page with the budget and doing well so far. Baby steps.
This is us too.

CONGRATULATIONS!! Your hard work and thrift most definitely paid off!!
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Old 02-08-2013, 12:09 PM   #14
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Re: When the house is paid off... then what?

If you only had $5000 in interest, and are in the 30% bracket, you saved $1500 on taxes. At the end of the mortage, you pay very little in interest. We paid $3200 in interest this year .

We have 2 years left and will have about $1500/month to work with. I plan on increasing retirement from 15% to 20%. I plan on beefing up the car replacement fund, the house improvement fund, and our emergency fund. Right now, we have enough for the next car, but are not adding to it. And, we have enough for a basic kitchen remodel, but have other things on the list to do. We have 6 months expenses saved, but would increase it to 9 months.

How old are you? Based on a rule of thumb, you should have about .5 times your annual income in retirement at age 30, 1 times at age 35, 2 times at 40, 3 times at 45, etc. If you're not close to that, maybe concentrate on increasing that?
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Old 02-08-2013, 12:38 PM   #15
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Re: When the house is paid off... then what?

We bought another house! Our former home is now a rental property.

I think a vacation is well deserved.

After you return you can consider other investments:
home improvements
college funds
increase your retirement contributions to 20% of income
rental property
stocks

Or you can retire early, find a job that you love that pays less

You could also give more to charity.
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Old 02-08-2013, 01:48 PM   #16
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Re: When the house is paid off... then what?

Upstate, I taught in Albany til my current SAHM gig. I'll go back eventually somewhere.
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Old 02-08-2013, 02:00 PM   #17
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Re: When the house is paid off... then what?

We made our last house payment in October (after being debt free but the house for a while now) and our "extra" goes into savings (for various things) now. Its such a great feeling to know that no matter what our home is OURS. Our (somewhat vague) plans are increased retirement, growing our liquid assets to 12 months living expenses, home renovations, vacations, and just loosening up lifestyle (which is really what the previous list is all about) but we will always be careful spenders because of past mistakes.
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Old 02-08-2013, 03:45 PM   #18
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Re: When the house is paid off... then what?

We have quite a while left on our mortgage (20 years at the most but plan to pay it off well before then). If we were in your shoes I would max out ou retirement contributions and the kids college funds. I would then probably put money into each child's saving account each month as well as put money into a vacation fund and a new car fund. I know you want to be able to leave your kids a nice inheritance but I feel that there is a lot to say about the value in making memories. They will probably really appreciate a large amount of inheritance but family vacations and time spent together might hold more value. (I'm not saying that one has to take vacations with their kids in order to make memories). I hope to do a lot of traveling with my kids as they get older.
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Old 02-08-2013, 04:58 PM   #19
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Re: When the house is paid off... then what?

We are early 30s as well and paid off the mortgage last year. We now contribute $458/month to each Roth IRA and $100/month to each child's college fund (prior we were doing $100/month to each IRA and $50/month to each college fund). We might increase the college fund contributions as well, not sure. I think the max you can do is $5000/year per household, and with four kids we are at $4800/year already.

Beyond that, we still set up sinking funds for vacations, new vehicles, etc. We paid cash for a brand new van in December (well, with the trade-in) . We have been able to make some really large (IMO anyway) contributions to our church and various charities, and we are now saving for a trip to Ireland

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Old 02-08-2013, 06:23 PM   #20
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Re: When the house is paid off... then what?

Wow! We have a 30 year mortgage and are about 7 years into it. Every month we pay about $300 extra, but we're hoping in two years when the kids are in school and we won't be paying daycare costs that we'll be able to knock out our mortgage fast. If we could pay the $1200/month we're paying for that our mortgage would be gone fast! We only owe about 85K now.
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