$2600 x 12 = $31.2k/year. Yep, I am guessing even renting instead of purchasing would save you at most $600/month with the tax break.
Maat you gotta look whole picture, house mortgage with their income + tax break = a lot less. And renting where they live is expensive. So they wouldn't be saving much $7200/year.
NOT having a child for 1 more year would have been $30k extra to debt! And $30k is nothing to sneeze at, way more than not having bought a home. JinCO, not saying not to have children, but it really would have been the best move financially (not emotionally or mentally).
Plus, you without a child, you work more, get more money through bonuses, overtime, etc.
Right now I'd leave it in cash the EF. When you get more, then I'd move it into stocks. It's how I am, our EF is invested because we carry a lot of cash monthly because of DH's tuition. But everyone's situation and risk tolerance (ours is high), is different.
We're also about 90% into stocks in our retirement accounts and not exactly 10% bonds/cash. It's a good mix, and one we'll keep a long time and we're 28 and 30.
Keeping it in stocks retirement funds isn't a huge risk, you've got maybe 25-30 years at least.
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