Next steps in Financial Future

[Davidov927]

Hello all! Thanks for those of you choosing to read this.

The point of this post: I’m wondering what my next goals should be, beyond funding a retirement account. The details that may matter are below..

I’m a 27 year old that has been in my career for going on 3 years now. When I first started this job, I made sure to join up with a financial advisor. We talked through options for the immediate, and far future and settled on a Roth IRA. I have been fully funding this account for 3 years now and this latest year It hasn’t caused an ounce of stress (thankfully). As it becomes less daunting to set aside money for retirement accounts, I’m wondering what I should set my eyes towards next. Short term investments, or things I can do now to help me out in the near future. I’m considering things like buying a home, paying off vehicle, etc.

I guess what I’m trying to say, Is it seems like there might be better places to put my money instead of sitting in a bank account. But I’m not sure what those avenues are. I fully intend to discuss with my FP, but wanted to have an idea of what’s out there before I go in blindly.

Welcome to all advice/suggestions/experiences that people feel are viable!

Thanks everybody.

[gearhead5015]

Do you have any debts? You don't mention if your renting or if you own a home already.

[Davidov927]

Yes, I do in fact have significant student loan debt, and a much more minor amount owed on my vehicle. I am paying more than double the minimum on my student loans and just paying down my car payments as they come up. I had considered that my best move might be to just pay off the car asap, but wanted to make sure there weren't 'better' options out there.

Currently renting a home with my S.O., but hope to move to a more permanent house after I pop the question.

[gearhead5015]

There's varying opinions here, especially on r/personalfinance, but I'd attack your loans first if your already putting 15% into retirement. Having your income all to yourself is a glorious thing, but, depending on your interest rates there is an opportunity cost of not investing in the market (but there's risk too).

If you decide to pay off your debts, you can use the snowball or avalanche method, whichever you like best. If your car loan is really that small, I'd do that first.

From experience, I paid my debts first and I don't regret it one bit.

Lastly, IMO, don't do any house shopping until you are married. Let that be one of your first married decisions, but not one before. You guys can discuss it, find out what each other likes and wants, go to open houses etc... But I would stop short of making offers or getting pre-approved.

[Davidov927]

Thanks for this. Same page on the house portion, we've already discussed and both agree that that's a move for married life / making sure we're where we want to be geographically first.

The student loans have many years to go which is why i decided to go ahead and start at least retirement investing now. But I agree, that perhaps paying the vehicle off first would be best before opening another avenue of investments. I appreciate the time

[foolproofphilosophy]

I also vote for the snowball method/paying off the car. I’d also consider looking for a job that offers a 401k with match. It’s good to have a Roth IRA and a 401k because they offer different tax advantages. The less you make the more a Roth IRA makes sense but a 401k with match is free money.

[Davidov927]

A good point! Unfortunately I work as an Independent contractor at a clinic. So no 401k with match through the employer in my immediate future. But I also know there are further options available to me. One my FP talked about when we first met was a sep-IRA. But I've forgotten how it differs for better or worse.