TheHungarianCPAPFS

CPA, CFP, IAR,Life Agent here to advise
Jan 14, 2020
15
4
Los Angeles, CA
www.erkfc.com
Status
Non-Student
QUESTION:

My wife and I are both physicians.

We have been out of training for 9 years now. Until last year we have been focusing our resources for a house rebuild (now done and refinanced) and paying down student loan debt (now less than 50k combined.)

we have always maxed out our 401k and have a combined 1.5k - all on index funds.

3 kids all have good amounts of 529 saved.

now we have some extra resources. Wondering is there is a consensus next step?

taxable accounts to put more in the market?
real estate? How do people get into syndicated deals? Is there a reputable source to find these? Bc all the ones I have heard about seem to be all word of mouth.

something I am missing? The combined crowd source here is so great.

thanks in advance.

ANSWER:

Dear sdbill

I would consder the following oder:

1) Make sure to have 6 month to a year of emergency funds. The more you have the more stress free you will feel about your finances.

2) Pay off student loans

3) If you bought your home prior to 2017, I would pay down the mortgage loan to $1M, so that all of your mortgage interest is deductible.

4) If you bought your home after 12/15/17, I would pay down my mortgage to $750K, so that all of your mortgage interest is deductible.

5) Be careful with an addition. That would not be the biggest bang for your investment, you will have to go through planning, permitting, a good contractor who actually finishes the job he starts, and cost overruns, change orders, the cost could be more than you thought of. However, here are some other tips that you give the best bang for your buck:


If you decide to add on, check their license with your state's contractors license board, to see if there are any complains or actions against the person. You should also ask them for their completion bond certificate. This way in case they skip town with your money, you can call the insurance company and put the bond into effect. But call before you sign the contact that same insurance company and make sure that their bond is in force and when the expiration date is. This way they dont just show you some expired insurance that you thought was in force when you signed the contract.
 
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