To reach their goals here’s what I recommend:

1. Purchase a home together in 2026.

Before buying a third property I want this couple to prioritize building a complete emergency fund! A good rule of thumb is to expect to pay 1% the value of each property on maintenance, so with three properties in the future an emergency fund is very important!

Based on their current fixed expenses and spending, I’d say they need around $7,000 to cover their standard basic expenses. I’d aim for a six-month fund of $42,000. Currently they have a starter emergency fund of $13,451. There’s $28,549 left to save.

After they have a complete emergency fund, they can save for the down payment. They estimated the third property would be valued at $350,000. I recommend saving for a 20% down payment, or $70,000. I want them to also plan for closing costs, which we’ll estimate will be 3% of the loan value ($350,000- $70,000= $280,000), or $8,400.

He’s currently saving $950 a month, but to reach this goal, I challenge him to increase the monthly savings to $2,500. Within eleven months he’ll have the complete emergency fund of $42,000. By paying $1,000 extra to her car ($1,326 total), she’ll also have her car paid off. Then collectively they can save $3,826 monthly. Within twenty months they’ll then have an additional $78,400 to purchase the home.

Luckily now interest rates for high yield savings accounts are around 4.2%. This will add a few thousands of dollars to speed the process up. Also, for the months he gets a third paycheck, he can throw to the home savings additionally.

Some food for thought on the third home purchase…

They’re moving in together now and planning on renting out the home he owns now. The mortgage is $2,294 plus $150 for the HOA. Due to the market, they think they can only get $2,000 for the rent. Essentially every month they’ll be losing $444. Is this then a good time to buy a third property? Will the property cash flow net positive? Although it’s a goal to have more rental properties, the stock market historically earns 10% in the long-run (versus home values appreciating 3-4%). They could potentially put money in the stock market for a more passive investing strategy versus dealing with vacancies, low rents, and maintenance expenses.

But if that’s what they wanna do, then do it!

One more caution…

Buying a house together while unmarried (even though they are happily partnered and secure in the relationship now) is very complex and comes with risks. I’d recommend getting a cohabitation property agreement that outlines who owns what in case of a breakup or separation.

2. Retire early, ideally in their 50’s

He’s currently contributing 6% of his income for retirement in his 401(k) plan, which is up to the company match. I recommend he increases his investment contribution now to 10% total monthly. He can do this by boosting his 401(k) contribution, or to have full control over what he invests in, he can open a Roth IRA and contribute the other 4% (an additional $315 a month).

Here’s their retirement projection:

Him Age 34-37:

• Invests 6% with company match 6% in 401(k) = $12,296/year
• Invest 4% with Roth IRA ($315 /monthly) = $3,780/year

Saves $2,500 month to complete emergency fund, then down payment. Assuming 8% return, retirement account is valued $181,913 at 37.

 Him Age 37-55:

Once the home is purchased, they now invest $2,500 additionally. Assuming 8% return at age 55 his investments are $2,453,185🤯🤯.

Her Age 37-40:

She has a pension plan, but I recommend her investing 10% of her gross income ($577 a month) in a Roth IRA.

At age 40 her retirement (not including her pension) is $24,788 assuming an 8% return.

Her Age 40-55:

She invests 10% ($577) plus $1,326, what she was paying to her car.

Her nest egg at age 55 assuming 8% return would be $698,681 (not even including her pension!)😲.