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SS&C Technologies, Inc. Hi Fishers
I am serving notice period in my curret job, I have overall 4years of experience in Investment Banking and now planning to apply job in UK so Fishers can you please let me know how I can apply for jobs. JPMorgan Chase Deloitte Bank of America SS&C Technologies, Inc. Accenture CRISIL EY Morgan Stanley Tata Consultancy Infosys Nomura Barclays
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I'm also in the B4, so I was where you are now and had to make similar decisions. I kept 6 months cash in HYSA/no penalty CDs at all times. Like you, I maxed out all of the firm 401k stuff (all Roth). Looking at your situation, I would be splitting the extra cash each month, probably $1k extra against the mortgage and the balance to an index fund. As you get raises each year, just keep feeding those with increasing amounts. I was able to blow out my mortgage over a decade early. The only other thing you didn't mention was kids. Do they have a 529 plan? If not, you might want to direct a small amount each month to each kid's plan. I started that with each kid when they were toddlers. I now have them in college, and the 529s are fully funding their schooling. As someone above said, if mortgage rates drop significantly, a refinance (and possibly a change to a 15 year mortgage) could be valuable.
You're doing great. Just put it on autopilot and let it run. Time is your friend. Good luck!
I have got 2 kids (9&7). Started 529 last year. Planning to contribute 4K each per year. Thank you. This resonates a lot
1) General advice is 6-12 months. Are you concerned about potential layoffs? Do you have a family relying solely on your income? If yes to both of those then on the higher end would be better so the 70K (in HYSA, money market or treasuries) could be fine as an amount.
2) see above. Potentially none
3) Assuming your emergency fund is fully funded then all of it unless you’re saving for specific things not accounted for in your 8k monthly expense (like a vacation or something).
4) see above. Potentially none
You could arguably reduce the cash if that is your emergency fund as you could take it down to 6 months ~$50k, but some people hold 9 mos to a year. If you have a job that might be hard to replace and dependents, I probably would not lower emergency cash (and alternatively might if the opposite is the case). There are a lot of individual factors that could vary. Without knowing more I tend to say invest the savings in the market, at least until you have built up a good bit of liquidity. But many factors to consider - stability of income, likelihood of both losing jobs at once, likely projected income, projected expenses / capital needs.
Coach
What are your monthly expenses? How comfortable are you that you could find a job quickly if something went south at your current company?
Where are you stashing your cash now? Just HYSA? Any brokerage funds or other investments?
How much equity do you have in the house? How long do you plan to live there? What’s your debt to equity ratio right now? A refi might be a good move in the coming months…
Coach
I’d probably put half of your current emergency fund into a brokerage account. Maybe put $2k into brokerage and $500 into HYSA each month.
If your mortgage is $650k and you have $200k in equity, then your DTE is ~76%. You may see lower rates at 75%, which would be worth the principal paydown. 70% is probably too far to stretch your finances, but if the value of the house rises, it might be worth exploring before you refi.
Mentor
You’re doing good.
I think you’ve realized you have enough on cash, and wondering where the $2500 surplus should go.
Either mortgage paydown or brokerage would be ok.
If you are deducting your mortgage interest I would lean towards brokerage, if not, then I would pay down and take the 6.5% guaranteed post-tax return.
https://t.me/+4-eRE_FrotllZjUx
1. $48K HYS from cash
2. Leftover in market from cash
3. $1250 in market from savings
4. $500 in mortgage principle from savings mthly