myjesusisgreat
New member
I am 35 (F), make ~$71K/year. Am looking for advice on what to do with $30K that I have saved in an HYSA over the past 3 years. The HYSA APR is currently approx. 0.75%, so I would like to start investing instead. I have maxed out my 401(k) for 2020, so my initial idea is to start investing and max out a traditional/Roth IRA. The only loan I have is the 15-year mortgage on the house I co-own with my husband (rate 3.6%). My husband thinks we should make another payment towards our principal (we already made a $6K payment this year towards our principal, currently ~$216000). My long-term goals are:
(a.) Have a well-funded retirement with my medical expenses (T2 diabetic) taken care of;
(b.) Finance our future child’s educational expenses (joint goal; my husband already has and maxes out his Roth IRA every year towards this);
(c.) Set some money aside for any medical/other emergencies my parents (who don’t live in the US) might have in the next 15-20 years;
(d.) Have a debt-free existence.
My questions are:
(a.) Have a well-funded retirement with my medical expenses (T2 diabetic) taken care of;
(b.) Finance our future child’s educational expenses (joint goal; my husband already has and maxes out his Roth IRA every year towards this);
(c.) Set some money aside for any medical/other emergencies my parents (who don’t live in the US) might have in the next 15-20 years;
(d.) Have a debt-free existence.
My questions are:
- Is it better to invest through a Roth IRA vs. Traditional IRA, given that I do not have an immediate need for the amount I would be investing in either account?
- After I set aside the max limit for a Roth/Traditional IRA, what should I be investing the rest of the $24K in? Is my husband right in saying we should be making another payment towards our principal? If I am looking to invest this amount for 5/6 years, I am assuming that I will get at least a 5% annualized rate of return to beat our mortgage rate. Is that too ambitious?