My name is Nick, long time lurker first time poster. Here are the specs of my situation, just wanted suggestions on our next move.
Mortgage: $362k left (30yr fixed, 3.625% rate)
Market value of house approx. $480-500k
Paid $428k which included closing costs
Two family house which we receive $1700 per month, mortgage payment is $3,050 per
$1,350 per month for my portion.
Credit Cards: $4k, approx 14% apr
Student Loans: $0
Car Payment: $430 (3 year lease)
Bills: $500 per month (Cable, Electric, Gas, Water & Sewerage)
Savings ex 401k: $101,000
Combined Salaries: $160k ex bonus
6 month emergency fund is fulfilled with the $101k in savings. We are looking to invest going forward, either equities and/or real estate.
Would love to hear suggestions on our next move.
Thu Aug 20, 2015 1:55 am
Jan New Member
Cash: $ 1.00
Joined: 24 Aug 2015
I would suggest putting at least a portion of your savings into a private gold savings account which is free to open and will not incur any fees. It is a way of securing at least a portion of your money against a devaluation of the dollar. Gold and Silver are both true forms of money and have always been a store of value. Going to a private account will also protect you from government seizure you have the option of storing it free or if you wish you can have it delivered.
Tue Aug 25, 2015 2:46 am
oldguy Senior Member
Cash: $ 716.00
Joined: 21 May 2006
Net worth -
Real estate equity $120,000
Cash & stocks $177,000
NW = $300,000
The $362k 3.625% 30 yr FR loan is a keeper, there will probably be times in the next 30 yrs when you will very happy that your capital cost is locked at that low rate.
And your diversity of RE Equity and securities could be a good one - except that you have a lot of uninvested cash. If you were to keep that $177k in the 11%/yr generic market, that would be about $4M in 30 years, ie, the major part of your family wealth.
Paying almost $5200/yr to use someone else's car is costing a lot of money (millionaires usually drive older cars, there is a reason for that). You may want to buy out the lease.
And I would wonder why someone with a $300k NW would borrow revolving consumer credit at 14%? I'm in my 70's, I have yet to pay interest to a credit card company - and I use a cc for every purchase, seldom use cash.