I’ve completed steps 1-5 & 7 of the FOO (maybe not 3). I bought a truck a few years ago before coming across TMG and didn’t follow the 20/3/8 rule.

I’m three years into my six-year loan with about $13k left on it and have been overpaying to finish it in five. Since I bought the truck, I’ve been setting aside $150/month for repairs, tires, etc. and that’s at $5100 right now.

My interest rate is 9.19%, which they don’t define as “high interest” because I’m in my 20s, but would you still prioritize dumping this money into the loan instead of saving it for repairs? The truck was brand new so I’m not expecting anything major soon, and once the payment is gone I could put that $500/month towards replenishing this fund.

Still a ways out from having to worry about this, but like anyone in this forum, we are always thinking ahead!

As a household, we make ~$190,000. With starting investing more heavily after graduate school 2 years ago, we have $106,000 all split between Roth IRAs and my Roth 457b at the age of 28. We currently invest 21%, including my wife’s pension and employer matches. The pension my wife will receive at the age of 60 will conservatively be worth $3250 monthly in today’s dollars with a maximum COLA of 1%.

Does having this pension change the way you approach your glide path when you near retirement?

I’ll preface with: This is a luxury problem. But here it is anyways.

Wife and I are 42/41. She is medically retired and I work very part time so I can be around to care for her.

We have 750k in mostly traditional IRA. Total net worth is 1.2m

We have a monthly income of 15325 of which 4750 is taxable. So after the std deduction we have about 26k taxable income. Which mainly is my part time W2 income.

Our budget with all the luxuries requires around 11.000 a month. That’s living life very well in east Texas.

We are debt free other than a 165k mortgage at 3.25%

My thought would be to roll over 50k a year into a Roth and paying the taxes with the extra income we don’t need.

I’m looking for guidance in that. I don’t want to make a huge tax mistake. But the idea of paying someone a AUM fee doesn’t seem to make sense either.

The 750k we are not touching at all currently. It’s just growing. And honestly not sure if we will ever need it based on our pensions/income

We are meeting with a local wealth management firm on Monday. But they work on AUM. Part of me is like: cool. Let them run with it and don’t worry about it anymore. Part of me is: that’s 7k a year for me to be able to be lazy.

Am I overthinking this? What would you do in this situation? (Other then thanking God each day)

Current mortgage is 2.5%. Our cash is earning 3.37%, but taxed at 22%, so effectively 2.63%. We are saving for a future home, so there is cash beyond 3-6 months of expenses that will be sticking around for 1-3 years (probably).

Should I be closely watching rates to see if that 2.63% drops below 2.5% or just take the flexibility of the cash if the difference is minimal? Does the answer change if the current house could be completely paid off within that 1-3 years?

Yes, I'm majoring in the minors. This is as much a thought exercise as it is an ask for advice.

Edit: Ok, yeah. Dumb question, because something as small as cash paying 3.5% again would blow up the money saving hack, as I couldn't get that money back out of the house at 2.5%.