Quote:
Originally Posted by Sack Lodge
Yes. Her income is included in the figure I listed.
Any other thoughts?
Well, if expenses total around $4200 every month, typically you'd only "need" something like 25k in the bank. Maybe more if you were saving for something big, like a house, but since you got that covered I think you're okay to put your money to work without having to be as concerned with losing principal.
What rate is your mortgage loan? Some programs allow you to refi even if you're underwater, but I don't think rates have fallen enough in 1 year to justify the new closing costs you'll incur. Take a look at it though. Feel free to pm if you're in CA. If not, you should be able to find a broker who would be able to tell you if it's too close and shouldn't bother.
Paying down the student loan isn't the worst option. Personally, I would rather have $100k in both assets and liabilities than $0.00, but you said your income is just over expenses, so maybe it makes sense to knock it out, better your cash flow, and put exactly the amount you were paying monthly towards investment accounts. (mutual funds, etc)
So, with the rest, do some house-cleaning. Make sure you and your wife have retirement on track. Do you have enough in your IRA and 401(k)? Do you have the right life, health, homeowners, disability, and auto insurances? Start putting a portion of your savings in places where you can earn more than the bank. If there's 50k, you can have it directly managed or at least get into fee-based programs. If below 50k, make a well-balanced portfolio, or participate in one (index/trusts/mutualfunds). 5 years is a pretty long time for the "shortest-case scenario", so invest in it.