#1 - if you read this, thank you - sorry it's long winded.
I'm really hoping to get some good feedback in here - as everyone I've been talking to (which I keep limited) seems to tell me something different. I have yet to meet with our "investor" that manages our IRA's until I have a little more knowledge so he doesn't rake me over the coals. I don't know him that well, and although he has managed our IRA's just fine, I still understand investment brokers have to make money too.
For the next 18 months we'll be saving $12K month (after taxes)- and have no idea what to do with it. (And can save $8K month after that if required).
Last week we paid off our last auto-loan and have zero debt besides a $190K balance on our rental home that is occupied on a year to year lease with tentants. All CC's/cars/toys are paid off.
Our plan is to buy 10 acres and build a house in the $300K-$500K range. Or find a recently built home if it's exactly what we want.
We are kind of on a 18 month plan, and would like to pull these monies out (appx $200K) to put down on a 2nd house in 18-24 months. Our kids are 2yr and 6yr, and I want to plant our roots sooner than later.
I'm getting really mixed reviews, where some folks are telling us to only put down the required 20% on the 2nd home and invest the rest, where others are saying buy property now with cash, build later and finance.
Some people are saying save the money in a online FDIC insured savings, T bonds, and max out IRAs (which are done).
We have close to $100K in our 401K's/IRA's and I myself have pondered the thought of saving the $200K in our normal bank, then pulling out our retirement, selling our rental home - then buying our dreamhome outright for around $400K and having zero debt completely. (We are 31 & 33 and I own stock in a portion of a business (which some people consider retirement?), my wife has a solid position). Then build our retirement monthly at the $8K savings a month.
I'm so confused because we have no knowledge of investing or using money in the right places to our advantage. I don't even know where to start.
It's very overwhelming, and I already feel we made a mistake by renting out our other home instead of selling it.
Can anyone shed some light on our situation? Thank you very much in advance!!