Wife and I combined income is $82,500 annually. We are 43 and 39 respectively. No kids.
Total Debt - $32,500
Debt - $32,500 owed on mortgage
Home purchased in 2004 for $177,000.
We have been after this mortgage for years and with our current plan are exactly 24 payments from paying it off. Obviously with the housing crash our home value hasn't gone up but we are in a stable area and the value has held and comparable sales in our neighborhood, when things do sell, is roughly $180,000.
Two cars - 2003 Toyota Corolla / 2002 Saturn Vue both paid for.
Cash - $30,000 in 1.25% credit union savings for now.
Other Cash - $3,000 in checking for emergencies. This is in addition to our regular monthly deposits and we don't touch this $3,000. It's there for emergencies. Say if our air conditioning goes out, or our car has a maintenance issue.
Retirement - $100,000 combined in various 401k plans, IRA's, etc.
Frugality is our mantra. We live below our means and direct all additional into paying off our mortgage. We don't plan to move, hopefully ever as we are in our dream home. Two questions.
1. We can pay our house off in 1 year instead of 2, if we take $10,000 from the $30,000 cash above and combine it with our payoff plan and add just a bit extra each month, which we can do. Should we do this or stay on our 2 year plan and keep the 10k on hand.
2. Retirement. Our balance seems a little low. Still trying to figure out how much we'll need at age 60 to 62. Obviously we plan to ramp up the dollars into the retirement account as soon as the house pays off. Suggestions as to what to do with the retirement account and a good way to figure how much we'll need exactly?
Thanks for your thoughts.