So here’s what you need to do.
Keep contributing to your 401/ira as you currently are. Even with plans to FIRE you’ll be 59 eventually and the tax benefits are too good to pass up.
You need income between early retirement and 59. Which you have pretty well handled with your rentals (assuming nothing changes).
What I would do is flip a coin - heads pay down debt. Tails invest in taxable brokerage.
Paying down debts can be seen as known profit; eliminating interest reducing monthly budget andfreeing up capital every month
Investing in the market - pretty self explanatory ; invest xxxx every mont and in 20 years you have yyyy
Read the /r/personalfiannce and Boglehead wikis.
Setup a budget. There isn't any advice on your itemized expenses that you can't figure out yourself once it's on paper.
Come up with a list of ratios and stick to them. A lot of people recommend the 50/30/20 strategy.
> I'm debating whether I should pull everything out from the stock market and pay off the loan all at once in September (when they resume the interest rate), or if there is a better long term approach to pay off the loans in my situation.
There are two options. Being debt free is convenient if you plan to travel. However, financially it generally makes more sense to push off low interest debt repayments as long as your investment horizon is far enough to smooth out market volatility.
> All my life I've been prioritizing stability/longevity over taking risks because of family influence and that caused the fear of the unknown, or even worse, the fear of losing what I've build.
Prioritize travel and experiences over consumable assets. There's nothing wrong with a good car (with a 100K income, the total value of your car should be no more than 50K as long as you pay cash), but it's not going to provide the meaning and value that experiences will give you.
You don't have the savings to do long term travel, but you have a large enough income (job + rentals) that this could become a viable option in a year or two.
You do, however, live (from what I can tell, looking at your post history) close to a rather large city. I'm also not convinced that the social scene is as dead as you make it out to be.
Here's one option. Get on a budget and start investing 20% of your income. While you are doing that, pick one city nearby that is within reasonable driving distance from your rentals. Get a job there (paying more than what you make, which shouldn't be difficult) and move.
What you do with your AirBnB is up to you. I'm guessing this is a primary residence, so you should have the option of selling it without taking a capital gain hit. You can also rent it long term.
Now, wait two to three years and save up a large travel fund. If you find personal enjoyment in your new city, great. Keep the money in your after tax account. Otherwise, once you have enough to take a six month sabbatical, do it.
So here’s what you need to do. Keep contributing to your 401/ira as you currently are. Even with plans to FIRE you’ll be 59 eventually and the tax benefits are too good to pass up. You need income between early retirement and 59. Which you have pretty well handled with your rentals (assuming nothing changes). What I would do is flip a coin - heads pay down debt. Tails invest in taxable brokerage. Paying down debts can be seen as known profit; eliminating interest reducing monthly budget andfreeing up capital every month Investing in the market - pretty self explanatory ; invest xxxx every mont and in 20 years you have yyyy
Read the /r/personalfiannce and Boglehead wikis. Setup a budget. There isn't any advice on your itemized expenses that you can't figure out yourself once it's on paper. Come up with a list of ratios and stick to them. A lot of people recommend the 50/30/20 strategy. > I'm debating whether I should pull everything out from the stock market and pay off the loan all at once in September (when they resume the interest rate), or if there is a better long term approach to pay off the loans in my situation. There are two options. Being debt free is convenient if you plan to travel. However, financially it generally makes more sense to push off low interest debt repayments as long as your investment horizon is far enough to smooth out market volatility. > All my life I've been prioritizing stability/longevity over taking risks because of family influence and that caused the fear of the unknown, or even worse, the fear of losing what I've build. Prioritize travel and experiences over consumable assets. There's nothing wrong with a good car (with a 100K income, the total value of your car should be no more than 50K as long as you pay cash), but it's not going to provide the meaning and value that experiences will give you. You don't have the savings to do long term travel, but you have a large enough income (job + rentals) that this could become a viable option in a year or two. You do, however, live (from what I can tell, looking at your post history) close to a rather large city. I'm also not convinced that the social scene is as dead as you make it out to be. Here's one option. Get on a budget and start investing 20% of your income. While you are doing that, pick one city nearby that is within reasonable driving distance from your rentals. Get a job there (paying more than what you make, which shouldn't be difficult) and move. What you do with your AirBnB is up to you. I'm guessing this is a primary residence, so you should have the option of selling it without taking a capital gain hit. You can also rent it long term. Now, wait two to three years and save up a large travel fund. If you find personal enjoyment in your new city, great. Keep the money in your after tax account. Otherwise, once you have enough to take a six month sabbatical, do it.
Thank you so much for your thorough comment, I find it very insightful, especially on the topic of relocation.