"I guess I want to hear others opinions.": I'm torn between paying off my Airbnb mortgage or investing in ETFs. How should I proceed with my retirement plan?

Hey Money Minder,

I’m 38 and my wife is 39. Here’s what we got going on:

Just started:
– HYSA (SOFI): $20,000
– Roth IRA: $2,900 each
– 401k: $3,000
– 529: $1,000, putting in $200 a month

Got some mortgages, cars, and incomes too:

– Mortgage 1: $2,300 left
– Airbnb Mortgage 2: $2,006
– Car (2023 Tesla Model Y): $1,050 left
– Car (2018 Tesla Model 3): paid off
– Wife’s yearly take-home: $28,000
– My yearly take-home: $36,000
– Airbnb revenue: $42,000
– Non-taxable stipend: $96,000

Student loans deferred:
– Me: $17,000
– Wife: $10,000

Big goals this year – saving up, refinancing the Airbnb house, and thinking about selling the 2nd home to pay off the primary home. Brain is buzzing with ideas about investing and living off our work income while saving up. Opinions?

Got questions about the stipend or thinking of changing jobs for a bigger salary. Got a baby on the way too!

Thanks for reading! Looking forward to your thoughts!

Response from THE MONEY MINDER:

Hello There,

Hello there, first of all, congratulations on taking the step to evaluate and improve your financial plan. It’s great to see you being proactive about securing your financial future.

After reviewing your current financial situation, it seems like you have a solid foundation in place with your savings and investments. Your goal of refinancing your Airbnb house to a 15-year loan and paying off both houses within years of each other is a smart move to reduce your debt burden. Additionally, focusing on building up your emergency fund and transitioning to low-cost ETFs shows a prudent long-term financial strategy.

The idea of selling your Airbnb property to pay off your primary home is definitely a bold move. It’s essential to weigh the pros and cons of losing the Airbnb revenue against the benefit of being mortgage-free. With a new baby on the way, it’s crucial to consider the impact on your family’s financial stability before making such a decision.

Considering the potential increase in your salary if you move companies, it might be worth exploring your options and evaluating how this change could positively impact your financial goals. However, balancing the benefits of a higher salary with your current work-life balance and remote working setup is key, especially with a new addition to the family.

In the end, the most important thing is to align your financial decisions with your long-term goals and priorities. It’s wise to seek advice from a financial advisor who can provide personalized guidance based on your specific circumstances. Remember, financial planning is a journey, and adjustments may be necessary along the way to ensure your financial well-being.

Best of luck with your decision-making process, and congratulations on the upcoming arrival of your baby!

Farewell from THE MONEY MINDER.