How to Pay for Our Home Remodel？ Are We on Track for Retirement？

#retirementplanning #homeremodel #retirementspitball Schedule a free assessment with an experienced financial professional: http://bit.ly/PureAssessment Office locations: https://bit.ly/PureLocations Ask Joe & Big Al On Air: https://bit.ly/AskJoeAndBigAl Subscribe to our YouTube channel: http://bit.ly/YMYW-YT Subscribe to the Your Money, Your Wealth® podcast: https://lnk.to/ymyw "Hello Andi, Al, and Joe from CA! I’m Jen. My husband, John, and I are both 39. I enjoy a nice cold glass of CA chardonnay and my husband enjoys a Manhattan. We have a cat and drive a Tesla and an old Volvo SUV. We have high incomes, but also very high expenses with three kids under 7 and employ a full-time nanny. We make $525k gross. Every dollar is spoken for, but that includes about $125k invested each year. I would really like to undergo a home remodel, which will cost $150k. Two questions to spitball: how should we fund our remodel, and are we on track for retirement? Here are our numbers: $525k gross annual income $50k savings $300k taxable brokerage $500k Roth IRAs (max out each year x2 via back-door plus HSA which we treat as Roth) $750k 401ks (max out each year x2) $550k 529s for kids (we went a little overboard on these- oops! We’re no longer contributing) Home is worth $2m in high cost of living California city. Mortgage balance is $620k, 2.6% interest rate. No plans to sell the home. We’re approved for a HELOC at 8%. Can you spitball how we should pay for our $150k remodel? Can we afford to do this while our kids are still young and therefore expenses are high? (We can get a loan at 8%, pull from brokerage, or ease back on retirement investing for a few years.) While you’re at it, are we on track to retire? We'd like to retire at 55 (in 16 years), maybe 60. We are in stable jobs and expect to continue to earn raises of 5% annually. Calculators show we’ll receive the max social security benefit, whatever that is when the time comes (currently $6,800). No pensions. Mortgage will be paid off in 2050 (~$36k/year) and we’ll assume our non-investment expenses will be about what they are now, around $250k/year, in retirement. Kids’ high school and college are covered by the 529s, so our expenses might decrease by $75k/year in the 10 years before we retire. If you turned back the clock and were approaching 40, is there anything you’d do to set yourself up well? Are we in good shape? Thank you!" IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor. • Pure Financial Advisors LLC does not offer tax or legal advice. 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Typically, the requirement is a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional one-year study. All CPA candidates must pass the Uniform CPA Examination to qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. CPAs are required to take continuing education courses to renew their license, and most states require CPAs to complete an ethics course during every renewal period. #homeremodel #retirementspitball #retirementplanning