Our priorities are:
1. Keeping our monthly spend <$10,000/month to continue building towards retirement.
Our current monthly spending is ~$9,000/month. $2,400 of that are home expenses/current mortgage.
Our target monthly spend in retirement is $10-12K/month.
2. Paying 2 kids (11th grade and 8th grade) college at in-state rates
We are trying to determine what our best strategy would be now with mortgage rates higher.
We would expect to purchase the new house and then immediately prepare to sell our current home.
Options:
- Liquidate taxable stock funds and pay off new house in full immediately
- Sell enough taxable stock funds to pay down ~$600K and keep roughly our current monthly house mortgage amount
- Sell enough taxable stock to make minimum down payment to avoid PMI
- Other options to consider?
- We also aren't quite sure yet how to handle the bridge needed between closing on the new home and selling our current house. Bridge loan or HELOC?
New House:
$875K
Current Home Value
Value: ~$400K / $60K mortgage remaining
Income
Spouse1: $285K/year
Spouse2: $150K/year
Cash/HYSA
$200K
Taxable
US Stock Index Fund: $400K
IX Stock Index Fun: $500K
College Savings (2 kids)
$140K
Retirement Accounts
$2.0M
Mix of Roth IRA, Traditional/Rollover IRA, and 401K. Can easily use to rebalance without tax implication.
Appreciate any thoughts or advice that this group has to offer.
Thank you!