So hubby and I are in our mid 40s. How that happened, I have no idea, but here we are.
We live in an area where wages are low, but cost of living has also been low (although it is rising quickly) and we have no kids and live frugally in a DINK lifestyle. We've reached the point we have some extra money each month I'm looking to put somewhere and I'm looking for advice and feedback.
We own a house that will be paid off in about 5 years. No plans to ever move. We built the house, so it is relatively new and in excellent condition still. We'll probably need to do some larger maintenance items like flooring and A/C in the next 5 years, but are prepared for that.
We own 2 old, but low mileage cars in excellent condition. I'm hoping we don't have to replace either for a few more years, but have $20k saved in CDs as a car fund earning about 3%.
We max our 2 Roth IRAs each year, and neither of us currently have access to a 401k at our jobs, unfortunately.
Our emergency savings account is fully funded for 10-12 month's expenses.
We currently have about $200k+ saved for retirement. We currently spend only about $25k/year and once our house is paid off, that will drop to about $15k (not including medical insurance or expenses, so there's that variable), in both cases, that is estimating high. Actual average expenses for the last 5 years have been between $20-22k, and the mortgage will knock off $9k when the P&I is paid off.
We average about $55-60k gross a year total household income, so ballpark $45k take home.
So at this point, we generally have about $20k left over each year after hard costs. $12k of that goes into the Roth IRAs. I don't really want to pay down the house early, as my interest rate is low. We have no other remaining debt.
I don't want to invest in real estate, for multiple reasons, primary of which is that any inheritance I may receive will be in that form, and I'd like to diversify. Secondarily, I've worked in that industry for 20 years, and while I know it can be profitable, because it's been my career, it will feel like I'm still working and is a headache I don't want.
Right now, I have about $10k to put somewhere and will have say $5k-10k a year additional to put somewhere, more after the house is paid off. I'm assuming at this point, my best option is going to be non-tax advantaged stock market of some kind, but at this point, I'm entering into the region of not knowing enough to make intelligent choices, or honestly even ask intelligent questions. And I'm definitely not a gambler or day trader. I don't want to pick individual stocks. I'm ok with moderate risk, but I'd like something I can just dollar cost average my money into, check on once a year, and otherwise ignore.
Alternately, my biggest question mark about retiring early is unforeseeable medical expenses. Are there any long term tax advantaged accounts to save for future years medical expenses? Not necessarily just retirement age, as we're looking at retiring early. My only experience with HSA type accounts have all been "use it or lose it" type.
I guess my question is, what sort of accounts should I be looking into at this point? Like, I don't even know what terms to start googling to educate myself. Someone please point me in some research directions.