@Wyatt Anderson, first off, thank you for your service! Your plan is solid, and it’s clear you’re thinking long-term, which is a huge advantage at 28. A few key thoughts:
1️⃣ Paying Off Your Home
Paying off your home early can provide security and peace of mind, but I’d encourage you to weigh the opportunity cost of tying up your cash. If your mortgage rate is low (below 5-6%), that money might work harder for you in real estate investments or even tax-advantaged accounts. However, if financial security and flexibility are your top priorities, paying off the house isn’t a bad move—it’s just about balancing risk and returns.
2️⃣ Investing in Real Estate
Your plan to invest in multi-family makes a lot of sense. Since you’re eligible for a VA loan, have you considered using it to purchase a 2-4 unit property instead of a single-family home? Living in one unit while renting the others could offset your housing costs significantly. That would allow you to:
✅ Live for free or at a reduced cost
✅ Keep your cash reserves for future investments
✅ Gain landlord experience early
✅ Start building wealth while keeping your risk lower
You’re in St. Louis, which has great rental opportunities, so I’d explore this option before committing to building.
3️⃣ Retirement Accounts (401k & Roth IRA)
Even though your company doesn’t offer a 401(k) match, tax-advantaged savings can still be a smart move. A Roth IRA allows your money to grow tax-free, and keeping that going could benefit you long-term. Some things to consider:
📌 Roth IRA vs. 401(k) – If you want flexibility, a Roth IRA is better since it allows for penalty-free withdrawals of contributions.
📌 Self-Directed IRA – If you’re serious about real estate, you can eventually roll your Roth into a Self-Directed IRA and invest in real estate while keeping tax advantages.
I wouldn’t cash out your existing Roth—just roll it into a new provider like Vanguard or Fidelity so you can keep contributing.
4️⃣ Cash Flow vs. Equity Growth
The fact that your electrician salary will grow to $52/hr in five years is a major asset. That means you can slowly shift from relying on your military pay and use that extra income to fund investments instead of aggressively paying down debt.
✅ Consider buying a rental property sooner while rates are lower.
✅ Focus on cash flow investments rather than just appreciation.
✅ Build emergency reserves for unexpected expenses.
Final Thoughts
You’re not an idiot for not contributing to a 401(k), but diversifying between real estate and tax-advantaged accounts gives you the best of both worlds. The key is flexibility—locking up too much cash in your home too early could limit your ability to invest in high-yield opportunities later.
If you want to discuss St. Louis real estate investing further, I’d be happy to connect. You’ve got a great head start!