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Savings vs Down Payment vs Retirement

Bogleheads • View forum - Investing - Help with Personal Investments - www.bogleheads.org
Hello

I’m 36 and husband is 34. We’ve only been married 1 year and are trying to decided how to best manage our finances. We feel really late as far as investing goes and would appreciate some advice. A little bit about me: I’ve freelanced in Tech for almost 10 years and have been able to pay off $120K in student debt, wedding, credit cards, etc. My husband has never had any debt. We now make a combined income of $300k (our salaries have majorly increased only over the last year or so due to promotions). Our combined investments which are in 401k, solo401k, traditional IRA and Betterment brokerage accounts equal roughly $170k. We have around $160k set aside for emergency funds, home down payment, and if/when we decide to have children. There’s a more precise breakdown below.

I’ve been trying to change careers for a while now (starting my own business) but wanted to pay off debt after finishing grad school at 32 and unsure if this move could greatly reduce my income. We are also planning on starting a family in the next year or so and maybe buying a home. Plus, since my husband is from another country, we're also deciding if we should buy abroad or in NYC. Doing all the big things at once is very stressful but thats how it has come to be and is the primary reason why we have a lot of money in emergency funds and savings.

So that being said:

- Do you think the amount of money we have in savings/emergency funds is unwise and should we be investing more into our retirement. The strategy was to hold a lot of cash while we work through big life changes as long we continue to max out our 401k ($18k).

- Should getting our retirement funds up to par be a priority over buying a home?

I am new to learning about proper investing and have been scouring bogleheads for advice so any feedback would be so helpful.

Thank you!

———————————————

BREAKDOWN

Emergency funds: ?

Me: $50k

?Husband: $50k ??

Savings:?Me: $40k (for starting a family, in case I’m not working, career change, etc)

?Husband: $30k (for down payment on a home)

———————————————

MY INVESTMENTS:

SOLO401K - $54,000

(just opened last week and have not chosen a fund yet)??

401k (from a previous job.. still needs to be rolled over)

$17,158.99?

Fidelity Freedom 2040 - FFFX

?Domestic Stock: 69.40%

Foreign Stock: 30.60%

??Traditional IRA

$13,743.67

Fidelity Government Money Market Fund (SPAXX)

Fidelity Freedom 2045 (FFFGX)

Domestic Stock: 44%

Foreign Stock: 20%

Bonds: 0%

Short-Term: 36% ?

———————————————

HUSBAND’S INVESTMENTS:?

401k

$80,000

Fidelity Freedom 2040 - FFFX?

Domestic Stock: 69.40%

Foreign Stock: 30.60%
Date: Aug 19, 2017   


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