StikyBoots
Dryer sheet wannabe
- Joined
- Aug 4, 2013
- Messages
- 24
Hi
I've been lurking for a number of months and finally am posting here!
I'm a 29 year old electrical engineer who has been out of college for almost 3 years.
This year I'll make 60k from salary and bonuses.
My assets:
2k HSA everything over 1k goes to an index fund
8k 401k (4% matching) 75% domestic stocks 25% foreign
12k CD's earning squat. This is my FU fund.
18k Half a house in another state my brother is buying me out at $500/month
160k House I live in purchased in March 2013
My debts:
130k Mortgage on house at 4.25%
42k Student loans from 2.1% to 6.55%
I have worked through my taxes for the 2013 tax year and decided to up my 401k contributions to 25% from 5% for the last 3 months of 2013. This should put me in the 25% tax bracket by 2k. My idea behind this is to slow the rate of paying down the student loans in favor of the 401k. I'll still be making extra payments on the student loans especially when I get my Christmas bonus which they don't take a 401k contribution out of. Does this make sense? Or would I be better off only doing the 4% until I get the student loans at 5% and higher paid off? My 401k is up 19% ytd so its hard not to want to put more in it!!
My idea for next year would be to max out the HSA again and try to up the 401k till I am just a $2-4k into the 25% bracket then put everything else towards the student loans. I'd be glad to hear some opinions on this. Maybe I just like saving my money more than paying back my loans!!
Thanks
I've been lurking for a number of months and finally am posting here!
I'm a 29 year old electrical engineer who has been out of college for almost 3 years.
This year I'll make 60k from salary and bonuses.
My assets:
2k HSA everything over 1k goes to an index fund
8k 401k (4% matching) 75% domestic stocks 25% foreign
12k CD's earning squat. This is my FU fund.
18k Half a house in another state my brother is buying me out at $500/month
160k House I live in purchased in March 2013
My debts:
130k Mortgage on house at 4.25%
42k Student loans from 2.1% to 6.55%
I have worked through my taxes for the 2013 tax year and decided to up my 401k contributions to 25% from 5% for the last 3 months of 2013. This should put me in the 25% tax bracket by 2k. My idea behind this is to slow the rate of paying down the student loans in favor of the 401k. I'll still be making extra payments on the student loans especially when I get my Christmas bonus which they don't take a 401k contribution out of. Does this make sense? Or would I be better off only doing the 4% until I get the student loans at 5% and higher paid off? My 401k is up 19% ytd so its hard not to want to put more in it!!
My idea for next year would be to max out the HSA again and try to up the 401k till I am just a $2-4k into the 25% bracket then put everything else towards the student loans. I'd be glad to hear some opinions on this. Maybe I just like saving my money more than paying back my loans!!
Thanks