I have (in my mind) figured out what to do with an upcoming windfall - but wanted some "expert opinions" as well. Can't hurt to get more perspectives! Windfall will be from sale of a condo. We are going to rent going forward in a new city (we are leaving NYC! Post to follow
).
Current general finances:
Windfall options:
If we do all of the above (minus paying off 2.25% loan), we will still have a good amount that can just go into a taxable account. We do not plan to buy a home for at least 2 years, possibly more.
Would anyone just pay off that 2.25% loan? The money that would've gone towards paying that can just go back into taxable account to "re-fund" that for an upcoming downpayment. I will also be making significantly more in my next job so will have no problems pouring $$ into this taxable account.
What say you?

Current general finances:
- Only debt are my 2 student loans - 1st is $75K at 3.7% variable (and rising), 2nd is $79K @ 2.25% fixed (5 yr term ending in 2021, if I repay the amount by 2020, I get 2% of the interest refunded, so it's basically almost interest free - First Republic Bank is awesome!).
- We are good on retirement savings (we both max our 403b + employer match, Backdoor Roth IRAs, my 457b, and currently putting in some Gs in prep for Mega Backdoor Roth IRA)
- Small efund in favor of paying off my loans
- Stepson with minimally funded 529, age 11
- Baby due next week (!), already has a 529
Windfall options:
- Pay off variable loan in full $75K (def doing this)
- $50K into stepson's 529 (goal is to fund half of state school equiv, we'll be able to cash flow a good amount too if we need to)
- We may need to buy a car unfortunately (already have one that is fully paid off). Looking at getting a Subaru Outback, ok with certified pre-owned. Probably need ~$30K for this.
- New Furniture $15K (we have old peeling IKEA furniture, it's time for an upgrade)
- $20K addition for efund
- ?? Pay off 2nd loan (2.25% fixed) - leaning towards not in favor of funding a taxable account instead
If we do all of the above (minus paying off 2.25% loan), we will still have a good amount that can just go into a taxable account. We do not plan to buy a home for at least 2 years, possibly more.
Would anyone just pay off that 2.25% loan? The money that would've gone towards paying that can just go back into taxable account to "re-fund" that for an upcoming downpayment. I will also be making significantly more in my next job so will have no problems pouring $$ into this taxable account.
What say you?
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