Throwaway account. I don’t have anyone IRL with whom I can talk about this, looking for advice.
Age: early 30s
Salary: 160k base + 66k in equity
Non-retirement brokerage: 340k
Company stock: 150k
Cars & toys: 70k
Wishlist for the next year:
Kitchen remodel: 20-25k
The amount I have invested in my company’s stock is getting to the point where it is making me feel uncomfortable, as I feel like it is starting to make up too much of my net worth. The company is a mid-size company, and the stock price has increased about 400% over the past 2 years. The amount is also getting pretty close to what I owe on my house.
What would you do in my situation? I always thought that I would pay off my mortgage in one shot with the amount that I have in the company stock. Now that this is becoming a very real option, I am getting cold feet. The mortgage is about 3% interest rate. If I sold off half my position, and used it towards the mortgage, it wouldn’t really get me anywhere, as the mortgage payment would remain the same. I also don’t want to company stock to go up another 400% in the next 2 years, and I spent all of it paying down a 3% debt.
While I have a fairly high salary on paper, I certainly don’t feel wealthy. Between 401k, IRA, HSA, ESPP and mortgage, my discretionary income is not that high. I have home remodeling projects and expensive hobbies and toys that need constant maintenance, repairs, etc. I always thought that eliminating the mortgage payment would provide some relief and help me feel more comfortable month to month.
I would also be interested at some point in buying 1-2 rental properties. I like the area I’m in, I have done landlording previously. I also need more garage space, and an additional property would allow me to keep the garage for myself and rent out the house without the garage. There are plenty of houses in the area that simply don’t come with a garage, so while this would lower the rental income, it wouldn’t deter someone from renting it altogether.