Now what?

[ktmarvels]

I feel like I have a pretty good handle on our finances, but we’ve recently met the goals I’ve set out. I want to know what we should be striving for now. Currently all excess money is put into our ING savings account. I want to make sure there isn’t a better use for our money.

DH and I are both 27 and have no kids. He’s an officer in the military and I’m in pharmacy school. We save about 20% for retirement in both Roths and TSP. We own all cars outright. EF is fully funded. I have accrued about 30K in student loan debt, but only 12K is currently earning interest. We have a 149K mortgage at 5.8%. In about a year and a half we’ll be moving….we plan on either selling our current house or renting it out. We also may consider buying another house in our new location at that time, so part of that money in our ING account is to save for a down payment.

Any thoughts on what we should do or what our priorities should be?

[Beppington]

Pay that stuff off! Donate money!

[creditcardfree]

Sounds like you are doing great!

Are you earning more on your savings than your student loan interest? If not, then pay off the student loans. Or pay off anyway!

This is what I would do: pay off student loan, sell house when you move, put all equity and any other savings you can afford toward next house. Then the NEXT time you move after that, rent the house and buy another one. My point, I wouldn't own two homes, while I had student loans.

[kork13]

I'll agree with the others, finishing off the student loans will be very good for you. But beyond that, I'd say you should take advantage of the financial freedom and do whatever makes you both happy. Set aside whatever amount is reasonable for you, and use it to travel, pursue hobbies, or whatever else you'd like. If you're in a secure position, you can afford to use your money to enhance and fulfill your lives.

Once I get to your position, that's exactly what I plan to do. Travel, scuba diving, snowboarding, and photography.

[cheerio]

If you husband ever gets deployed you can invest in the savings program through the military that guarantees 10% return. i did it and didsnt regret it. Just cant think of the name

[snafu]

If you plan to buy a house in 5 years, you need to be a conservative investor, seeking the highest interest available. Fact is interest rates will need to increase due to the government's extra ordinary level of debt. Keep any laddered CDs short term.

Like others suggest, I would pay off anything incurring interest.

[zetta]

I'd say the next step is to look at your long-term goals and start investing to build wealth. Do you plan to have kids? Do you want to pay part or all of their college expemses? Are you interested in retiring early?

The Complete Idiot's Guide to Getting Rich is good for helpin set your next goals.

[red92s]

When do you finish pharmacy school? Knowing what even entry-level pharmacists make right out of school, I'd at least start considering "next steps" for when you complete your degree and likely see a substantial increase in your income. Obviously the student loans would be a priority to knock out pretty quickly at that point, as you seem to have the EF, retirement, and transportation stuff pretty well knocked out. One important thing to remember is to not let your lifestyle balloon with your income when you finish school. You are already doing great, and with a little restraint and planning could have quite a stable financial future ahead.

[Mike75]

I would say PARTY!! You are one of the most financially secured and worry free person I have ever seen. I would say, just save the money and keep it for your future.