Long time reader, first time poster. I have always appreciated the thoughtful and highly useful information provided by this group. I was hoping you could help me decide how best to allocate additional funds.
Situation: My wife (30) and I (29) have 2 kids (2.5 and 1) and an annual income of just over 300k. We are both extremely committed to savings in an effort to retire early and live comfortably. Obviously, by retire, we do not mean quit working, but having the independence of choice of employment/hobbies.
Assets: Cash/Savings (short term): 10,000 Money Market (emergency): 25,000 - adding 500 a month Taxable Mutual Funds (diversified American Funds): 125,000 - adding
3,000 a month IRA (rollover from my first 401k): 20,000 Roth IRA (one for each of us): 8,000 total - income limits on additions Annuity (I know, but we were young and stupid): 32,000 - no more additions 529 Plan (Child 1): 17,000 - adding 350 a month 529 Plan (Child 2): 7,000 - adding 350 a month Wife 401k: 90,000 - maxing out each year - no company match My 401k: 90,000 - maxing out each year - 3% match House: approx 480,000Debts: Mortgage: 360,000 @5.75 (1 year into a 30 year fixed) Wife Student Loan: 13,000 @3.875 - paying 700 a month Car: 10,000 @1.9 - paying 350 a month
We have almost 3 million in Life Insurance between the two of us. About 1/4 of this is whole life through Northwestern Mutual that is paying around 8% annually in dividends. For this purpose, figure we pay about 1,200 a month in Insurance.
So here is the million dollar question. A lot of our money is tied up in retirement assets that we can't tap until 59.5. However, we both plan on "retiring" by or before our 50th birthday's. What is the best investment vehicle that will provide us ample funds between retirement and the magical 59.5 age, when all projections show us fine? We were using the whole life and taxable mutual funds for this purpose, but now I question the first.
Let me know if I need to provide more information. Sorry for the long post, but I am trying to cover all my bases. Thanks.