Home Forums Miscellaneous Topics Stock Market and Investing Advice on future

I started saving later in life (long medical degree and training salaries)
Single income, 6 person family - 4 kids ages 8 to 15
At 45, I have a 401k + employer matched account that I max out every year, a Roth with about 35k and also a separate taxable IRA account which is close to 100k (it is diversified, but could be more protected)

I have a rental home (valued at ~500k), that is 11yr out from being paid at 2,75% interest, and covered by the rent, but not making much more profit.
My current home we bought 2yrs ago, more expensive, a lot more years left (28) at higher interest to cover (5.7%). So when rates drop I'll look into refi
I have $15k in a HYSA, almost 18k in crypto (~9k in BTC, 7k ETH and LTC, rest is XRP and XLM, and I will try to move stuff to XRP and XLM)
I have no precious metals, guns are for fun/use

I'm at least 25 years from retirement, if not 30+ (in the medical field most retire at late 70s) and plan to add a spousal IRA, which we don't have yet.
I try to add ~$500 to 1k a month to my brokerage account but I'm hesitant to put much more in the market with the all time highs.
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What else should we be doing to prepare, what else I'm I missing and what should I be looking at for safe or cash flow investments.
My salary is fairly stable, but at the same time it is hard to "make much more by working harder" and I'm worried we may be headed for some tough times, not discounting a currency collapse.

This is one of those “how rich do you want to be?” questions.

The $23,000 per year into the 401 plus the savings you have will grow to about 4.5 million by age 67, if invested in something like an S&P500 fund.

You could probably squeak by on that if you had to? /s

I’d focus on getting some money into a 529 for kid’s college before doing anything else in tax sheltered retirement. Id also put some money into stocks outside of retirement, just in case you need some bridge funding.

The rental doesn’t sound like fun, to me; I’d consider selling it and put the proceeds towards your primary mortgage. That way, by the time the kids go to college your house will be paid for and you’d have some extra cash flow to back fill the 529 savings if needed.

I agree with Dutch. I'll throw in just a couple more things to think about.


The long term trend for the market is up and to the right, so that means there will be lots of all time highs over the next few decades. That doesn't mean it isn't on the high side now. But, if you try to time and wait for the dips, historically, you lose more than by staying invested and riding through the down times while continuing to dollar cost average. (BTDT, big time.)
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It looks to me like you are in pretty good shape because you are catching up by saving a lot of money from your higher earning years. You likely are going to be in the category where required minimum distributions from the 401(K) will result in you paying higher taxes at ordinary income rates than you are now (and marginal tax brackets may go higher by then). If that is the case, you should want to get as much money into Roth accounts as the law allows, if you are not doing so already. In addition, the taxable brokerage accounts are good because you don't realize gain on the stock appreciation until you decide to sell, and then you get capital gains tax rates rather than ordinary tax rates. Plus, your heirs get a stepped up basis if you don't spend it all down before you die. (Biden wanted to eliminate the stepped up basis, so there is that possibility at some point.)

If the rental home isn't generating a decent return after all the hassles of ownership, that sounds like the obvious way to get some cash. If you are worried about investing that in the market now, you could put some in a high yield savings account and/or into treasuries and/or give yourself a 5.7% return on the after-tax money by paying down the mortgage on your current home. You can refi the remainder when rates drop.

You sound like you are in a category where it would be a good idea to consult a fee-only fiduciary financial planner just to get some ideas (NOT to let them sell you stuff or manage your money).

Thanks for input. The "rental" is the house that we used to live in. There is definitely an Opportunity cost associated, but it is in a part of town that holds its value very well, and appreciates too.
We bought a bigger a house and the neighbor on the previous (now rental) had always wanted to rent ours, vs the one she rented. We went a bit under "potential" market rate, however the house never went on the rental market and we have long term renting. She is trustworthy, pays on time, lives alone, no pets, about to retire. The house is deteriorating less, as we are 6 (4 kids) and she is single.
We are saving on realtor fees and potential downtimes, minimal maintenance and paying for itself, albeit minimal earning. Though we may be losing the opportunity to invest or pay the other house, I think it will be an asset that is more protected from market crashes.

I will indeed make 529s for the younger ones, though the older ones might be too close to benefit from it. (I know money could be transferred to Roths eventually, but need more clarification)

Just an additional FYI, 529's can now be transferred between family members, and the equivalent of any scholarships can now be withdrawn from 529's without incurring any penalty.

The Roth conversion has a relatively low limit, but in essence the 529 can be passed on to your children's children. Pretty neat way to prime the generational pump, so to speak.

Sounds like you like the rental -- but I'd suggest you run the numbers in detail, including the cap gain tax on sale. With a below market rent, I'm skeptical that a single family home as a rental unit will produce an attractive return -- considering the risk and hassle factor. It's just hard to see the price of single homes going anywhere but sideways over the next decade (the National Association of Realtors just came out with their prediction for annual price increase for next year at 2.5%).

Wow. You seem to have your hand in a lot of pots. I’d need a personal assistant to keep that many balls in the air at one time. I’d personally try to simplify my finances and focus on being a medical professional, a husband and a father. The last thing I’d do would be to become a landlord. I’d be rid of that rental yesterday.

There are lots of unknowns in your personal situation. This is not a criticism, as I’d be reluctant to post lots of specifics as well. Your income, total debt burden and net worth would all be factors to consider in planning future moves. I particularly like Cheyenne’s advice about getting some expert help with your finances. Get things running on auto pilot with a budget for spending, saving and giving. Then enjoy your all too brief time with your family and make the most of your career. These are the best of times. Enjoy them. The kids will be grown in a blink.

As an aside, while lots of docs work into their 70’s, lots of others retire earlier. The freedom to have that choice will be worth a lot when the time comes. And be sure to have term life and disability insurance. Lots of it. Protect the wife and kiddos, because sometimes chit happens. You’ll sleep better knowing they are protected.

You are right with lack of details, just being cautious putting stuff on a forum.
More than specific details on how to run things, was about making sure my things are in line. Though it might seem my hands are on a lot of pots, in reality it is family, work, fitness and hobbies.
Thanks for the reminder, I do have both life and disability insurance, and the questions posted is with the goal is to leave family setup and keep my things in order, to be able to enjoy more, and worry less.


The part of town where the house is, a fairly good, so should not lose value. When I said below market, it wasn't that much different, and would have only covered the realtor fees.

I think you are doing good. There is one thing you didnt mention, and not that I care, and I don't know the circumstances , but when your kids get older , your wife might want to go back to work, if she can.. Four kids are a handful at this time.. They will be gone before you know it though . The days are long but the years are short. This could open up more investing money like another ROTH and 401K.. My wife has always worked but was always just a few days a week when the kids were small. We had a lady at church watch one for 2 bucks an hour and my mom also wacthed them too. We were lucky . You will be just fine.. As for the rental, Dutch is right . You will pay capital gains on it but what you do make can be put in the house loan and that is a 5.75%? gain and guaranteed too. My mom sold all here rentals several yrs. ago and never regretted it , but looking back she would have done better had she waited till last year. She was 82 when she sold, so she was DONE! with rentals . You will be selling right at the top! Like Dutch said , he does not believe there is much more fuel for the fire for price gains for a long time.

Forget ETH, LTC, XRP, and XLM. Focus on BTC, SOL, and MSTR. I would sell the rental and take 30% to pay off primary residency, 30% invested into BTC, SOL, and MSTR, and the remaining 40% I would keep on hand dry powder for the dips. Listen to James on youtube InvestAnswers. He will steer you right!

I don't know what can be done. It's a bad situation. Your plan takes you to the brink of statistical male life expectancy and even beyond it. My only advice would be to save and cut spending. For instance your idea of a vacation would be to go out for pizza in next town over. I'd not buy anything at all if possible. Id hunt for bargain used cars, and unfortunately the kids will need to be on their own for things like college. I think if it were me, I'd sell the new place and move back into the rental. But I don't know your entire situation just cursory. Peace and good luck.

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I kinda think that the rental property is a good diversified holding.

But I would not be that big on having mortgage payments.

Dave Ramsey isnt wrong. His method works for folks making little to nothing. Works even better if you’re making a lot of money. Get an advisor that follows his methods and rock on. Good investing is boring. You can also invest ALOT more without car notes, and mortgages depleting your bring home each month. Get you an investment calculator and run some numbers on the rental and your primary residence. Check the difference bw paying them off and investing the cost of the mortgage that’s freed up vs keeping the mortgage and investing less each month.

There is 0 chance I’d pay 5.7% interest on a 30 year mortgage if I could liquidate the rental and non retirement accounts and pay it off.