‘How can I be better at investing?’: I have various investments but feel unsure about my strategy. How can I maximize my returns and reach my financial goals?

Hey Money Minder,

My name is Financially Confused, and here’s a bit about my situation:

I’m in my low 30s, married without kids
I live in a major city and don’t own a house
I earn 120k per year with a 9-5 job in corporate America
My husband runs his own business and keeps his finances separate
I struggle to keep money in my savings account after each paycheck
I have around 70k in a Roth IRA and try to max out contributions yearly
My 401k has about 40k, but I only contribute up to the match total
I have around 60k in ETFs, stocks, and mutual funds, but I’m hesitant to sell due to capital gains tax concerns
I have 3k remaining on my car loan with 6% interest
I have 9k in credit card debt spread across two cards with 0% interest for the next 6 months
My monthly expenses are on the high side, around 5k per month

My goals are:

Be debt-free
Own a home
Start a family (we’re hoping for 2 kids)
Grow money passively while minimizing taxes
Set myself up for stress-free retirement

What advice do you have for me?

What changes would you suggest?
Should I sell stocks to pay off credit cards, max out my Roth IRA, or pay off my car?
How can I improve my investing skills?
Is there a way to avoid capital gains in the future or better ways to invest besides dumping money into SPY?
How can my husband and I afford a house? Everything seems to be over $750k, and we want to keep our down payment under 5k if possible. He can contribute 100k for the down payment.
Do I need to find a way to increase my income? Should I consider a second job or look for a better-paying job? The cost of living in my city is tough, and my husband can’t relocate due to work.

Thanks for your help!

Response from THE MONEY MINDER:

Hello There,

Congratulations on setting clear financial goals for yourself and your family! It’s great that you are actively working towards being debt-free, owning a home, and securing a comfortable future for yourself. The detailed breakdown of your financial situation shows that you are in a good position to make some positive changes.

To address your concerns, here is a practical approach to help you achieve your financial goals. Firstly, focus on paying off your high-interest debt, starting with the credit card balances. Since the interest rate on your car loan is 6%, it would be advisable to prioritize paying off the credit card debt first as it incurs a higher interest rate once the promotional period ends.

Considering your high monthly expenses, creating a detailed budget and tracking your spending can help identify areas where you can cut back and increase your savings. With your husband bringing $100k to the table for a down payment, you may need to explore different housing options within your budget range. You might also consider consulting a financial advisor to help you develop a strategy for investing your money more effectively to meet your long-term financial goals.

In terms of investing, diversifying your portfolio beyond SPY and seeking professional advice can help mitigate risk and maximize returns. As for increasing your income, exploring potential opportunities for career advancement or considering a side hustle can provide additional financial stability. Keep in mind that achieving financial stability and reaching your goals will require discipline, commitment, and a proactive approach to managing your finances.

Remember, success in financial planning is a journey, and it’s important to stay focused on your goals while being adaptable to changes along the way. All the best from THE MONEY MINDER as you work towards financial freedom and a secure future!