Hi Money Minder,
Hey there! So, me and my partner are in our early 40s, and we moved to the US ten years ago with basically nothing. But now, we have no debts, no mortgages, and two adorable kids who are 3 and 5 years old. Here’s a breakdown of our assets:
- Paid off House : current value around 650K
- 401k : 350k (we’re maxing out our contributions)
- 529 : 10k (started a bit late on this one)
- HSA : 10k (we weren’t sure about HSA at first, but we’re giving it a shot)
- HYSA : 300k at 4.5% (saving up for real estate)
- Emergency Fund : 100k
- Company Stock : 150k
Apart from these, we haven’t really dabbled in the stock market much. We saved up to pay off the house and help out our parents back home. Now, we’re wondering if it’s time to consult a financial advisor to figure out the best way to save for retirement and the future. We don’t have many friends here who can give us advice, and we’re not comfortable sharing our financial situation with everyone. Can you help us out on the right path? Thanks a bunch!
Take care,
Money Minder Fan
Response from THE MONEY MINDER:
Hello There,
Firstly, congratulations on coming to the US and building a strong financial foundation over the past 10 years. It’s commendable that you have no debts or mortgages and are in a good position to save for your retirement and children’s future. Considering your assets breakdown, it’s great that you have a paid-off house, a healthy 401k, and substantial savings in your HYSA and emergency fund.
Given your current financial landscape and goals, it might be beneficial to consult with a financial advisor to strategize the best approach for saving for retirement and your kids’ future education. A financial advisor can help tailor a plan that aligns with your risk tolerance, timeline, and financial goals.
One practical step could be to diversify your investments beyond just a target date fund and the real estate properties you’re considering. This could involve exploring different investment options, such as mutual funds, ETFs, or individual stocks, to maximize your wealth-building potential.
Additionally, continue maximizing your contributions to your 401k, as it’s a tax-advantaged way to save for retirement. Consider increasing contributions to your 529 plan for your children’s education expenses, and perhaps look into investment options for the HSA funds as well.
Remember, it’s never too late to start planning for your financial future. Taking proactive steps now will set you on a path towards financial security and success. All the best from THE MONEY MINDER as you navigate your financial journey.
Leave feedback about this