I should have made it clear that the DH take home number is NOT including the bonus money.  Also, we work for an investment firm and can not buy stocks, so that is not an option. We donate about $4000 annually - both in cash and goods (adopt and family, buying turkeys, etc). 

bagelbites:

I should have made it clear that the DH take home number is NOT including the bonus money.  Also, we work for an investment firm and can not buy stocks, so that is not an option. We donate about $4000 annually - both in cash and goods (adopt and family, buying turkeys, etc). 

Can you invest in an ETF?  If so, that would be my suggestion. But really,  you're at the level where your accountant and broker should be working together and telling you want to do.

 ETA: I also like the rental property idea, but I've found that having a rental property that you use yourself can cause problems and unnecessary headaches (tax and otherwise).  Still, it's not a bad idea, you just have to be willing to do the extra legwork and pay for the extra tax guidance.

Have you thought about investing in a business?  Your financial adviser should have a plethora of options seeking investment by high net worth individuals; he/she should be able to sift through the incoming prospectuses and make a recommendation as to which ones are credible and worth of consideration.

We can, and we don't have either of those (yet).  I guess I should start looking for one, though my DH is an investor so he might not want one -- but I know we need a better accountant - we've been doing our taxes ourselves.  

 

My Edit, based on your edit -- no we haven't thought of a business.  I didn't mention that DH is also in a wedding band and gets about $10k cash per year from that.  I am sure the band would love to have him as an investor! HA.  Just kidding.  That is an interesting idea and something that had never crossed my mind.  I know the rental could bring headaches, and that is what DH is worried about, but we live near a great coastal town that has 3 season traffic (hour from our house) rents are about $2500 a week on average in the summer and we could buy something for between $350 and $450 that we could be quite comfortable in, short walk to beach, etc.  

bagelbites:

We can, and we don't have either of those (yet).  I guess I should start looking for one, though my DH is an investor so he might not want one -- but I know we need a better accountant - we've been doing our taxes ourselves.  

 

My Edit, based on your edit -- no we haven't thought of a business.  I didn't mention that DH is also in a wedding band and gets about $10k cash per year from that.  I am sure the band would love to have him as an investor! HA.  Just kidding.  That is an interesting idea and something that had never crossed my mind.  I know the rental could bring headaches, and that is what DH is worried about, but we live near a great coastal town that has 3 season traffic (hour from our house) rents are about $2500 a week on average in the summer and we could buy something for between $350 and $450 that we could be quite comfortable in, short walk to beach, etc.  

I think the rental is a good idea, I just wouldn't suggest that you use it as a vacation house as well, lol, that was my only point. I have a rental property in a college town and it's been a great thing for us. We pay someone to manage it, enjoy the depreciation on our taxes, set the rent solely to cover the costs, and all is good. It's actually our daughter's college savings vehicle -- we just re-fi'd into a 15 yr mortgage at 4% so basically our tenants save for college for us and give us a tax break at the same time.

 

I<3 that your DH is in a wedding band! Seriously. 

I would highly suggest you sit down with a financial planner. You are at the income range to need more specifics than, put an extra $200 towards this loan. I almost wouldn't pay off your mortgage. Just because the interest rate is likely low enough, and it is a 15 year mortgage, not 30. So your money would do more work in a different account. We receive an extra $50k a year on farmland that I own. It is an "extra" amount that we do not need, and we trust our financial planner to put it into something that works for us. We found one through "New York Life", because we trust in their core values. So we wanted someone that shared those qualities.

Yeah our mortgage is at 3.125 and I am inclined to not touch it -- at this point we need all the help we can get to get our taxes down! 

bagelbites:

Yeah our mortgage is at 3.125 and I am inclined to not touch it -- at this point we need all the help we can get to get our taxes down! 

I would only touch it because your payment could come down considerably if you re-fi'd the principle down to what you actually owe at this point.  The principle on my mortgage is about equal to what you owe and we have a higher interest rate than you and pay about $500 less than you a month all in (and we are in Houston where the property taxes practically lead the nation in how high they are).

Other RE investments and even investing in a business can help you get your tax bill down by enabling you to carry losses, take depreciation, etc. I think you really need to find a financial planner that works with a tax lawyer - it is time for you to expand your guidance team.

Hmmm, we just refied again a few months ago at 300k - and we've only been paying a few months on it.  Our P&I is $2089, taxes are $460 and the rest is Insurance, $99.  

I'm a big fan of home renos so I would consider the shower/mud room addition.  You will be able to sell for more when you are ready to move because the extra shower will be more appealling to buyers and once your DD grows up a little more it will be nice for her to have her own bathroom.  My kids are 6, 3, and 7 months and I love not sharing a bathroom with them at all.

 Other than that I would look in to increasing either retirement investments or the college fund.

Your home interest is so low that it isn't all that appealing to pay off too early.  Plus, it is a write-off which is nice.  I would consider adding a little more to your payment each month (maybe $200) so that is will be gone sooner but I wouldn't throw too much at it and I wouldn't want to refi because that is a great rate.

bagelbites:

Yeah our mortgage is at 3.125 and I am inclined to not touch it -- at this point we need all the help we can get to get our taxes down! 

One suggestion is to up your donations/contributions.  Make a more significant contribution (maybe a 5 yr committment) to a cause you & your DH really care about.  Will help on your deductions.  Also suggest sitting down with a good financial planner - they can always find ways to invest your money.  I assume you have life insurance on both of you ? 

You may want to put more into college fund. My niece and nephew were suppose to get a sizable amount of money to go towards college but the investments from the fund took a huge hit when the economy took a dump & they ended up with nothing. If you put the money aside for them and the annuity still holds, then you can gift them the extra money you put aside for college towards wedding, home purchase etc, or use it towards something you and your husband want or towards your retirement.