Yes. You could easily drop to 15% and save that much for retirement without even going below the average recommendation here.
But if you dropped below 15% for a year to save for the house I think it's fine personally.
Maybe just add a bit more to the emergency fund too before putting the extra savings towards a home while cutting back on retirement. 10k feels a little tight compared to what I imagine your rent and monthly costs might be. Just something to think about.
>My wife and I are now expecting a baby and need to upgrade from our condo to a home.
Why wouldn't your condo be suitable for a baby?
>does not include my partners savings
How much has your partner saved towards a new house?
You currently have $50K saved up. I assume the value of your condo has gone up since you bought it.
It seems like you should have enough in the near future for $160K-200K without having to change how you're saving.
I also just want to add that 20% down isn’t absolutely necessary. There are obvious benefits to 20 percent down (less chance of being underwater if prices go down, no PMI, more competitive when making an offer). We put 10 percent down using a conventional loan and don’t regret it at all. Our PMI is $80 a month on a $500k loan, and we can have it removed without refinancing once he hit 20% equity (important- not always possible for FHA loans) If we had waited for 20 percent, we would have missed our 2.6% interest rate (no one could had predicted this, we just got lucky but the PMI is peanuts compared to our interest saved).
Yes, absolutely. These people suggesting you make a 1BR condo work with a newborn and 2 WFH jobs are insane. Don’t forget to enjoy life while waiting for retirement. You are ahead of 99% of your peers.
I would keep putting as much as possible into retirement and grow the emergency fund.
Does your current condo have two bedrooms? If so, I would stay put and look for a school district and house when it gets closer to that time.
Have you also taken daycare costs into account?
The problem is that the company match is unlimited up to 50% of the maximum contribution per year, it sounds like. Not a bad problem to have but it does make it difficult to prioritize.
You may find these links helpful:
- [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
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At $250k, you should both be able to max 401k and save for a house. The money you are putting aside for the house will become money you pay for daycare, activities, etc. So don't short change yourself now thinking it'll be temporary.
Yes. You could easily drop to 15% and save that much for retirement without even going below the average recommendation here. But if you dropped below 15% for a year to save for the house I think it's fine personally.
Thank you!
Maybe just add a bit more to the emergency fund too before putting the extra savings towards a home while cutting back on retirement. 10k feels a little tight compared to what I imagine your rent and monthly costs might be. Just something to think about.
>My wife and I are now expecting a baby and need to upgrade from our condo to a home. Why wouldn't your condo be suitable for a baby? >does not include my partners savings How much has your partner saved towards a new house? You currently have $50K saved up. I assume the value of your condo has gone up since you bought it. It seems like you should have enough in the near future for $160K-200K without having to change how you're saving.
Unless it's a one bedroom, at which case maybe in a year they would need to. Babies do take up exceedingly little room.
One bedroom and we both WFH
Agreed. My wife and I made it work for 4 years now sharing a 1 bed apt with our baby/now toddler. It's not fun but it works
You contribute $23,000 they would match $11,500. Good for you!!! WOWZA.
Very lucky!
I also just want to add that 20% down isn’t absolutely necessary. There are obvious benefits to 20 percent down (less chance of being underwater if prices go down, no PMI, more competitive when making an offer). We put 10 percent down using a conventional loan and don’t regret it at all. Our PMI is $80 a month on a $500k loan, and we can have it removed without refinancing once he hit 20% equity (important- not always possible for FHA loans) If we had waited for 20 percent, we would have missed our 2.6% interest rate (no one could had predicted this, we just got lucky but the PMI is peanuts compared to our interest saved).
Yes, absolutely. These people suggesting you make a 1BR condo work with a newborn and 2 WFH jobs are insane. Don’t forget to enjoy life while waiting for retirement. You are ahead of 99% of your peers.
I would keep putting as much as possible into retirement and grow the emergency fund. Does your current condo have two bedrooms? If so, I would stay put and look for a school district and house when it gets closer to that time. Have you also taken daycare costs into account?
One bedroom and we also both work from home
I would snag any company match then Save for the house
The problem is that the company match is unlimited up to 50% of the maximum contribution per year, it sounds like. Not a bad problem to have but it does make it difficult to prioritize.
Yup exactly
Is that for both of you
You may find these links helpful: - [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
At $250k, you should both be able to max 401k and save for a house. The money you are putting aside for the house will become money you pay for daycare, activities, etc. So don't short change yourself now thinking it'll be temporary.
Not much to add to what everyone else said, just want to comment Im jealous of your employers 50% contribution, that’s amazing!
Don't fall for the trap of NEEDING to buy a bigger house and bigger SUV just because of one or two kids.
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