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I got H1B Visa and 83000 USD dollar petition amount as annual package.I am confused as this amount will be enough to survive there with wife and 7 year old daughter.My wife is working here and together we are earning 50LPA annual.We are settled here by owning house too.Confusion is my wife will not be able to work there on H4 Visa so the kind of life we are living here will not be possible there.Thoughts?Suggestions?Pros and Cons?
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Mentor
How much debt? Retirement savings?
I go high interest debt>retirement>kids>mortgage/ car loans
Mentor
If the $30k debt is some low rate loan (e.g. car) I’d start throwing any additional money for the kids. If it’s credit card debt, take care of that first
You mention $30k in debt and a mortgage. Are those the same or different? You should definitely pay down any high interest debt before saving for college. Your mortgage, especially if it was obtained or refinanced while rates were around 3%, is a different story.
I think the basic rule of thumb on saving for college is it comes behind paying your current obligations and saving for your retirement. That is for a lot of reasons, including that it’s possible your kids will get scholarships or other opportunities that make college more affordable than you might otherwise anticipate. Student debt also just got remarkably more manageable, so there may also be good reasons now to consider financing college over paying for it, independent of ability to pay (and because you can always use that ability to help with loan repayment if necessary but cannot ever claw back money you paid to a college).
I really didn’t save anything for kids college which was probably a mistake given the 529’s, I opted to fund ESPP and hold those savings or utilize LTI. Additionally am just paying the tuition out of current salary. When they were little it was super expensive and would have been a significant impact to lifestyle
Pay off the debt
Mortgage has about 300k left
$15k / year into a 529 for the first 5 years. Go from there
Visual Storyteller
We put just enough into 529 to get the max state deduction then put the rest in Roth IRA through mega backdoor. If we ever get to the point where I can max that we'd consider doing more to 529 but until then having it in Roth instead of 529 gives us more flexibility
They also have custodial brokerage accounts that I match any contributions. Once they have real jobs we plan to contribute to their Roth IRAs to give them a headstart there.