Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Introduction from new member...
Old 09-30-2007, 02:55 PM   #1
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 87
Introduction from new member...

Hi there! Just found these boards and looking to get involved. Im not really sure where to start with all this, but I guess a statement of where we are financially is a good start. (You got to know where you are first if you want to get somewhere, right?)

Its lots of numbers, and looking to make the net move upwards!

Scott
-------------------------------------------------------------------------
Heres the pertinent information:

Age, Location:
  • 27, Fort Knox/Louisville, Kentucky
Income:
  • My salary: $75,000.
Wife’s salary: minimal while pregnant (expecting in December.) Didnt think she would be able to get another job until next school year, but she has a few irons in the fire right now.
Consumer debt:
  • $0 credit cards. I got Chase Rewards card that gets 3% for gas and 1% for the rest. Card is paid off monthly.
  • Car note: ~$3,500 moved to 0% credit card to be paid off at end of 12-month.
Other debt:
  • My student loans: ~$57,000 fixed at 4.5% which is about $330/month for 30
    years. (Resulting from MBA and Engineering degree.)
  • Wife's student loans: ~$55,000 fixed at 4.5% which is about $310/month for 30 years. (Masters degree to become middle school teacher. sigh)
  • First Mortgage: ~$78,000 at 6.375% with 15 year fixed. Monthly payment is $831 including escrow with no PMI.
  • Second Mortgage: ~$19,000 at 9.375% with 15 year fixed. Montly payment is $212 with no PMI (escrow included in first mortgage).

Savings:
  • 401k: ~$42,000. I am contributing 5% of paycheck into 401k to maximize employer match. There are no 401k loans at the present. This gives about $1,950 per biweekly paycheck.

    Roth IRA: ~$450. I just got it started a few weeks back.
.
Insurance:
  • BCBS Federal Employee Plan. This is great insurance because there are no out of pocket expenses for child birth including prenatal visits.
__________________

__________________
ChemEng is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-30-2007, 06:02 PM   #2
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,182
Welcome! Another fed, huh? Me too, and quite a few more, plus active & retired military including reserves. I'm guessing you're under the FERS system. If at all possible, and I know you have big student loans, but you really would be well advised to try to increase your TSP contributions as much as possible, with a total IRS max-out as your goal. That's gonna play a huge part in your future federal retirement. That is, if you stay with the fed. I'm under the old CSRS system, so I don't get any matching money, but I still max my TSP, on an income $10,000 less than yours. See ya around the boards!
__________________

__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
Old 09-30-2007, 06:43 PM   #3
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 87
Yep. Another Fed. And under the FERS retirement.

I was maxing out my contributions earlier this year, but my wife lost her job and hit our income by 30%. After that I decreased them down to 5% to maintain the 100% matching. When I got my promotion to GS13 last month, I started a Roth with the increase in pay. Im 27 now, and putting the money into Roth made much more sense to me than increasing TSP the same amount.

Im going to start inching the TSP contributions again each year or when the wife gets another teaching job.

Love you sig too.
__________________
ChemEng is offline   Reply With Quote
Old 09-30-2007, 10:10 PM   #4
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
welcome aboard! keep your eyes and mind open...these people can offer a lot!


looks like you are well on your way. in your shoes, i'd be sure to max the roth which will only cost you 150/paycheck. then start hammering down the debt....that 9% second looks like a good candidate to start with.


Once the wife goes back to work, you should be all set....and be able to really sock some $$ away.

but why am i telling you this...im sure you have it figured out- you look to be on the right path

And of course, congrats! we are also expecting, not until april though. keep us posted
__________________
thefed is offline   Reply With Quote
Old 09-30-2007, 10:16 PM   #5
Moderator
bssc's Avatar
 
Join Date: Dec 2005
Posts: 9,930
Welcome to the boards.

Continue saving those dryer sheets. Look around, I think that you will find lots of useful information. Lots of Feds here too.
__________________
Angels danced on the day that you were born.
bssc is offline   Reply With Quote
Old 10-01-2007, 07:05 AM   #6
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 87
Quote:
Originally Posted by thefed View Post
welcome aboard! keep your eyes and mind open...these people can offer a lot!
Agreed. Looking forward to learning a lot here.

Quote:
Originally Posted by thefed View Post
looks like you are well on your way. in your shoes, i'd be sure to max the roth which will only cost you 150/paycheck. then start hammering down the debt....that 9% second looks like a good candidate to start with.
The 9% is the next place we are starting to tackle. The first was the wife's car note at ~9%. We took out a CC and used 0% Balance Transfer offer to really get some traction on getting it paid off. Itll be paid off in the next few months. The second mortgage will be next in line. The experience with 0% Balance Transfers has been good, so well probably look there again when we get the car note finished.

Quote:
Originally Posted by thefed View Post
Once the wife goes back to work, you should be all set....and be able to really sock some $$ away.
Absolutely. She is able to substitute now almost daily, but there is a rather large pay differential between substitute and full time teacher. Theres a few irons still in the fire for her to land a teaching gig this school year, but we arent holding our breaths. Shes 6 months pregnant and looks 6 months pregnant.

Quote:
Originally Posted by thefed View Post
but why am i telling you this...im sure you have it figured out- you look to be on the right path
Confirmation on what you think you already know is never a bad thing! Its reinforcement that you are pointed in the right direction.

Quote:
Originally Posted by thefed View Post
And of course, congrats! we are also expecting, not until april though. keep us posted
Will do.
__________________
ChemEng is offline   Reply With Quote
Old 10-01-2007, 11:38 AM   #7
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 63
Congrats on the promotion to a GS-13! Another fed here, for a few months more anyway . Don't forget to use your FSA for child care when the time comes. Welcome to the board, lots to learn and great folks here.
__________________

__________________
Getting short is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
My Introduction AlmostDone Hi, I am... 2 10-04-2006 09:47 PM
Introduction hogwild Hi, I am... 7 05-15-2006 07:34 AM
Introduction John Tuttle Hi, I am... 1 03-07-2006 03:35 PM
My introduction Cool Dood Hi, I am... 86 02-24-2006 11:10 AM
An Introduction Coach Hi, I am... 4 02-04-2006 05:21 PM

 

 
All times are GMT -6. The time now is 09:04 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.