Hello everyoneI hoped to get a couple of opinions on my present monetary image as I’m state of affairs planning subsequent yr.I’m in my mid 30s. W2 earnings has fluctuated during the last 5 years however ranges from ~$300k-$450k. I anticipate subsequent yr’s W2 earnings to be $480-$500k of which $200k are money wages and the remaining in firm inventory vests. Funding earnings publish taxes, bills and debt servicing can be about $25k. I usually reside off my money wages solely and use vesting firm inventory to spend money on property, traditionally actual property.I’ve $3.8M value of property and $1.7M of liabilities, damaged out as follows.Property:401(okay): $220kBrokerage of principally dividend shares/funds: $70kVested firm inventory: $320kHSA: $13kCash principally in HYSA: $50kRental Property #1 value $1.1M – money flows about $19,000/yearRental property #2 value $490k (I am 50% proprietor) cash-flowing detrimental about $6k per yr.
Rental property #3 value about $220k and money flows about $10k/yearMy main Residence is value about $1.6M.Automotive is value about $30k.Liabilities:Rental property #1 remaining mortgage: $477k at 2.625percentRental property #2 remaining mortgage: $197k at 6.9% (I am answerable for half)
No debt on rental property #3.Major Residence remaining mortgage: $954k at 3.125percentHELOC steadiness: $56k at 9%. I’ve ~240k of credit score obtainable.Automotive Mortgage: $14k at 2.9percent401(okay) mortgage: $28k at 4.5percentNo CC or different client debt.The HELOC steadiness was used to transform rental property #2 and I’m planning on paying off the credit score line by February ’24 utilizing firm inventory that’s vesting between every now and then. That is the primary yr I have not maxed out my 401(okay) contributions within the final 3-4 years as I’m placing the cash in direction of the HELOC fee, recognizing I do not get the tax profit.I’m principally questioning what to with the $250k of vests I can be receiving subsequent yr. I’ve 40% earmarked for taxes so I ought to internet $150k. I will probably do a couple of residence enhancements for about $25k.I need to fats hearth however I haven’t got a selected yr or asset aim but. In consequence I usually dislike the thought of maxing out my 401K) given the age restrictions at which I can entry the cash.I really feel I’m already obese on firm inventory so considering on the next choices:• Make investments into dividend paying index funds• Pay down low curiosity loans (automotive or 401k)• Construct up money buffer• Accomplice and purchase an asset (actual property)I usually have a reasonably excessive funding danger tolerance however am thought of decreasing publicity to the $320k of vested firm inventory I’ve. My value foundation on your complete portfolio is simply $72k so batch gross sales end in important capital positive factors, even at long run charges. My earnings can be decrease this yr than subsequent yr so if I make this selection I would wish to promote some off this yr nonetheless.What would you do with subsequent years’ firm inventory vests of ~$125k and would you trim present portfolio? If that’s the case, what would you spend money on?
