Introduction from new member...

[ChemEng]

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.

[martyb]

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!

[ChemEng]

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.

[thefed]

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

[bssc]

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.

[ChemEng]

Originally Posted by thefed

welcome aboard! keep your eyes and mind open...these people can offer a lot!

Agreed. Looking forward to learning a lot here.

Originally Posted by thefed

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.

Originally Posted by thefed

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.

Originally Posted by thefed

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.

Originally Posted by thefed

And of course, congrats! we are also expecting, not until april though. keep us posted

Will do.

[Getting short]

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.