my situation and your advice/thoughts

[luckbeatsme]

Correct, no other expensive cars  Thanks for the encouraging words/advice!

[Ivy]

You're looking for advice and plenty of people here, myself included, are happy to oblige.  

Congrats on the excellent income!  You're WAY ahead of me when I was your age.  Enough people have beat you up about the cars; I think they're right, but no sense in piling on.  Keep the cars for a long time and the cost/year ownership goes way down.  If that's the worst financial mistake you ever make, your doing pretty ************************ good.

What would I do in your situation?

1. Keep your current emergency fund.  Your taxable account could be used if things get desperate.  They won't, but it's nice to know that it's there.


2. Max out all your retirement and HSA contributions.


3. Fire the advisor, move your IRA to Vanguard, then roll the 401k into the Vanguard account.  Low cost index funds.  Plenty of articles on this site on which funds.  Keep it relatively simple.


4. Start the 529s for the kids.


5. Knock out the credit card debt.  Dave Ramsey 'debt snowball' style would be my choice.  You make enough money that it probably doesn't matter what order you do it, as long as you do it as fast as possible.  All debt is bad, but credit card debt is IMO the worst.


6. Attack the student loan debt.  This is undoubtedly the hardest part.  That's A LOT of student loan debt!  It's going to painful, but the more pain you can tolerate (within reason) the faster that monster goes away!  You could use your taxable account to knock out most of the debt, but I wouldn't.  I think the pain of going through the payback process will help you in the future.  I'm not saying it's wrong.  I just wouldn't do it that way.


7. Attack the car loans.  They probably will be relatively small amounts by this point, because you haven't bought another set of expensive cars, right?  Right?!


8. Save enough cash to convert the Vanguard IRA to a Roth IRA.  The tax hit is going to sting, so save up for it ahead of time.


9. Start funding a backdoor Roth for you and your wife.


10. Save at least 20% of your pretax income.


11. Pay off the house.  Many folks like the tax deduction, as it's one of the few deductions high-income earners still get.  However, I can tell you having no mortgage is one of the most freeing feelings of my life!  No debt at all, great income, and you're on easy street!

Honestly, you're doing pretty well already.  Keep up the good work!

[scbunker]

And one more: my reply to the original topic.

[scbunker]

Posting isn't working right for me. See attached for a reply.

[nyu04]

For what it's worth, I'm a big car fan as well so I understand where you're coming from.  Like everyone said, get rid of the car/student loans.  You make a ton of money - adjust course a bit and you will be well on your way to financial success/freedom.

P.S. - nice choice on the P85, love that car!

[luckbeatsme]

I've learned my lesson.  I am a big car person, but like I said in the original post, it is what it is now.  In the future, yes, no loans for cars.  My advisor gave me permission to get the cars, as he knows it brings me joy.  Either way, extra funds will now go to loans and i'll be smarter as I learn more from this site and you all.

And wranglers normally don't cost that much...I had lots of upgrades done for off road stuff

[Joseph]

Slav4ikMD wrote:

why can’t she spend what’s left over on the cars she enjoys?

Click to expand...

Do you see any debts listed?

That is why.

Buying cars with cash is fine.

I understand the income level, trust me.

[Slav4ikMD]

Guys, c'mon the person is making 500k, presumably is saving 20+% of income, why can't she spend what's left over on the cars she enjoys?  To each her own.

 

BTW had no idea a Jeep costs that much!!

[NaOH]

.

[Joseph]

luckbeatsme wrote:

My taxable investments are all in individual stocks.

Click to expand...

162k here while 132k in cars.

That is a major dilemma.

Fire your advisor.

[Joseph]

luckbeatsme wrote:

My taxable investments are all in individual stocks.

Click to expand...

162k here while 132k in cars.

That is a major dilemma.

Fire your advisor.

[luckbeatsme]

Yep I know the cars are over the top.  I accumulated personally.  I know I spend on cars but at least save a decent amount as well.

[Joseph]

Wow.  More than $130,000 in automobile debt?! Seriously?

Your life insurance is about right for a wife and 2 kids.

Did you accumulate all of your taxable account savings personally or was it a windfall gift? You should be paying off your cars and student loan and mortgage.

I understand the income but cannot wrap my mind around those car prices, sorry.

[luckbeatsme]

Thanks for all of the input!  I truly appreciate it.  I have a tesla p85 and a Jeep Wrangler unlimited

[J.D.]

What 2 cars did you buy?