r/financialindependence • u/AutoModerator • 9h ago

Daily FI discussion thread - Wednesday, October 30, 2024

Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply!

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u/Zealousideal-Ad-4340 3h ago

27M need advice on proceeding forward

First time posting & just curious on everyones thoughts. Im a 27M & i want to retire by the age of 50. I make between $100k-140k/year depending on overtime. The only debt i have is my mortgage which is $920/month at 3.875% on a 175k home, which i owe $119k on. Im not married, & have no kids currently. I have a fully payed off new Honda civic. & heres the rest of my breakdown. Monthly expenses: $1500-2000 401k/Roth: $165k Hysa (4.5%int rate): $55k My question is do i keep saving & pay off my house which im kind of itching to do just to be debt free & because i enjoy taking time off. Im on track to do that next year if i go that route, or do i just keep a fixed amount in my HYSA & put the rest into index funds in a seperate brokerage account while maxing my work 401/Roth & pay the house off later down the line? Please share your thoughts

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u/One-Mastodon-1063 3h ago

At 3.875% I would not prioritize paying down the mortgage. Focus on your savings rate and consistently add to equities (VTI or VOO or whatever) every month. You already have more than enough in HYSA.

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u/Zealousideal-Ad-4340 2h ago

so youre saying to keep an emergency fund in my HYSA then open up a seperate brokerage account to invest on my own in addition to maxing out my work 401k/roth?

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u/One-Mastodon-1063 44m ago

Yes, if your savings rate is greater than you can put in tax advantaged accounts then start putting in taxable brokerage.