First Timer

[simplelife]

I stumbled onto this site just the other day and found it somewhat refreshing that I'm not the only one out there that just wants to enjoy life as soon as possible!

Here's where I stand and am hoping for some additional advise from the already retired:

I'm 30 years old, married (wife 27yrs old) with a newborn (5 mos old)...she's a stay at home mommy and loves it! We live modestly but comfortably for us.
We have no debt other than a car payment (to be paid off in a couple years and a mortgage of 106k @ 5.75%).
We have approx 30k in Roths and 15k in 401k. We're saving approx 5k a year in 401k (plus a 5k match = 10k) and 6k in Roths. We also have about 16k in liquid cash for emergancies.
A few questions I have are: Should we try and pay off the mortgage first and then bump up savings (we could, if we use the Roth contributions to prepay mortgage, payoff the mortgage in approx 6.5 years) or continue on contributing to the Roths and payoff the mortgage in approx 10 years?
How about college savings for the baby? Any comments on this: ie. 529, Coverdell, etc.
I'm hoping to be an ER by the age of 50 if not sooner!!!

That's about it...how's it look for us?

 

[Cut-Throat]

A few questions I have are: Should we try and pay off the mortgage first and then bump up savings (we could, if we use the Roth contributions to prepay mortgage, payoff the mortgage in approx 6.5 years) or continue on contributing to the Roths and payoff the mortgage in approx 10 years?

I would continue the Roths and most here will probably agree with me. You have all of gains of the Roth being tax free. The interest on your home is tax deductable. If you don't contribute to the Roth, you will lose this chance and cannot make it up later.

 

[BigMoneyJim]

Yup. Use all tax-advantaged savings avenues (well, at least [Roth] IRA and 401(k)/403(b)/457 and similar)) up before paying down the mortage. You can always pay more on your mortage later, but you can't later make up the missed opportunity of stuffing money in IRAs now.

Welcome to the board! I'm 34 and as everyone is probably tired of hearing just paid off my credit cards and am about to pay off my car (although my car just broke down last night and I have some associated transportation, rental and repair costs going back on the credit card for a month or so). It looks to me like you're off to a good start.

 

[Trace]

I am 34 and in a similar situation. I would max out the 401K and Roth IRA's before paying off the mortgage.

I am at the point where my 401K and Roth IRA's are being fully funded. I am using any additional funds toward a 529 plan and paying off my mortgage.

I chose the Iowa College Savings 529 plan. It is run by Vanguard and the fees are less than other plans. You do not have to live in Iowa (I don't) and the funds can be used for schools across the country. You can start with as little as $25. Also, you can link Upromise contributions to this account. They have some great asset allocations (index funds). You may want to check out www.savingforcollege.com. It was very helpful. Good luck.