There’s great advice above. Educate yourself by reading the Boglehead wiki and develop an IPS that is suited to your goals and risk capacity.
It’s important to have a good estimate of your desired house down payment and the time frame for needing the funds. If you can put aside money on monthly basis between now and then, that means that more of the $175k can be allocated to your other goals.
Another BH suggested that more information is needed before making a recommendation. This cannot be overstated. Consider the following ideas:
If you are not maxing out your retirement accounts, this is great time to start. If your regular cash flow is tight, you can use a portion of the $175k principal for living expenses.
I see some benefit to paying off the student loan to eliminate a budget item; however, consider that a student loan at 4% may be cheaper than the cost of your mortgage. Paying the student loan on a regular basis will leave you more money for your down payment and less money to borrow.
Good luck. Take your time with the decision.
It’s important to have a good estimate of your desired house down payment and the time frame for needing the funds. If you can put aside money on monthly basis between now and then, that means that more of the $175k can be allocated to your other goals.
Another BH suggested that more information is needed before making a recommendation. This cannot be overstated. Consider the following ideas:
If you are not maxing out your retirement accounts, this is great time to start. If your regular cash flow is tight, you can use a portion of the $175k principal for living expenses.
I see some benefit to paying off the student loan to eliminate a budget item; however, consider that a student loan at 4% may be cheaper than the cost of your mortgage. Paying the student loan on a regular basis will leave you more money for your down payment and less money to borrow.
Good luck. Take your time with the decision.
Statistics: Posted by Affable at 50 — Tue Feb 25, 2025 2:17 am — Replies 4 — Views 619