Looking for some feedback from the group on putting some cash to work or not.
I tend to mentally organize my savings into separate little stacks...drives my wife crazy ..lol.
One stack is the grad school, wedding and house downpayment stack for my two daughters. There is $250K in that at present and my estimated need just changed as one daughter has announced she is dropping the premed track, which I had planned to fund the cost of med school. I have mixed feelings about that, but that is perhaps another post. I estimate total need at $450K, and the account funds through passive income at $60-70K per year. I also see this fund as my emergency kid cash, i.e.) car problems, moving costs ,apartment rent, etc.. The timeline on the marriage, house downpayment thing is a huge unknown of course, but grad school need starts in 3 years. There is 529 money that pays for the other daughters grad school and college, so the math is a little more than I have presented.
I'm down to $160K on the house mortgage, and we won't talk about the boat ... SO, the question is: Do I put some or a large chunk of that money to work and pay off the house mortgage now? I'm putting additional money toward principal now and the calculations show full payment in 3 years. Do I stick to my little organization stacks? There is a certain degree of comfort there as I like having the kids needs in front of me and knowing I have them covered and not counting on that passive income stream. The income will only continue as long as I am working, but I plan to work until age 59 1/2 , or I may stretch it out to 60 ( lol) , so another 6 1/2 to 7 years.
Thanks in advance for your input.
I tend to mentally organize my savings into separate little stacks...drives my wife crazy ..lol.
One stack is the grad school, wedding and house downpayment stack for my two daughters. There is $250K in that at present and my estimated need just changed as one daughter has announced she is dropping the premed track, which I had planned to fund the cost of med school. I have mixed feelings about that, but that is perhaps another post. I estimate total need at $450K, and the account funds through passive income at $60-70K per year. I also see this fund as my emergency kid cash, i.e.) car problems, moving costs ,apartment rent, etc.. The timeline on the marriage, house downpayment thing is a huge unknown of course, but grad school need starts in 3 years. There is 529 money that pays for the other daughters grad school and college, so the math is a little more than I have presented.
I'm down to $160K on the house mortgage, and we won't talk about the boat ... SO, the question is: Do I put some or a large chunk of that money to work and pay off the house mortgage now? I'm putting additional money toward principal now and the calculations show full payment in 3 years. Do I stick to my little organization stacks? There is a certain degree of comfort there as I like having the kids needs in front of me and knowing I have them covered and not counting on that passive income stream. The income will only continue as long as I am working, but I plan to work until age 59 1/2 , or I may stretch it out to 60 ( lol) , so another 6 1/2 to 7 years.
Thanks in advance for your input.
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