Just wanted to get your thoughts on my financial situation. I’m 45 years old with a total of 383K in retirement accounts, 20k in a High-Yield Savings Account, and 6k in daily checking accounts. I still have 90k in student loans and a mortgage of 134K on a house that Zillow says is worth around 400k (can’t always trust those estimates).
I’m aiming to pay off my house in 10 years by making an extra payment of about 170 bucks a week. I know the interest rate is only 3%, but it gives me peace of mind. I try to max out my retirement contributions each year – I’m at around 24k so far this year with a total of 10k in principal paid on the mortgage.
My spouse and kids are grown up. Do you think I could cut back on work or even retire completely in ten years? I’m not looking to travel much – I’m happy to spend my days eating Thai food, chilling with my cats, and hitting the shooting range. My main goal is to leave as much money as possible to my family when I’m gone.
What do you think?
Seeking Peace and Prosperity
Response from THE MONEY MINDER:
Hello There,
While it seems like you have a solid plan in place with your retirement savings and paying off your mortgage, your student loan debt remains a significant concern. Given your desire to reduce your hours or retire outright in ten years, addressing this debt is crucial for achieving financial freedom and peace of mind.
I would recommend focusing on paying off your student loan debt aggressively while continuing to make your extra mortgage payments. This will not only help you eliminate a substantial liability but also free up more cash flow for your retirement savings. Consider creating a detailed budget to prioritize debt payments and ensure you are maximizing your contributions to retirement accounts.
Additionally, it may be beneficial to reassess your retirement goals and timeline. Consider working with a financial advisor to develop a comprehensive plan that aligns with your desire to reduce your hours or retire in the next decade. They can provide valuable guidance on optimizing your current financial situation and adjusting your retirement savings strategy to achieve your desired outcome.
Remember, it’s essential to find a balance between enjoying your present life while also planning for the future. By addressing your debt strategically and seeking professional advice, you can work towards a financially secure retirement that allows you to continue enjoying Thai food with your wife and quality time with your cats.
Best wishes on your financial journey,
THE MONEY MINDER
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