iwannaretire
Dryer sheet wannabe
- Joined
- Feb 5, 2007
- Messages
- 14
I've been reading this forum for the past year and really enjoy it. Our situation right now is a lot different than most of yours, but we're making good headway.
Age: 31, wife in twenties
No kids . . . yet
Combined income: $110,000
Hope to retire in 50’s
Savings/investments
401(k): $12,167
Savings: $2,595
Debt
New condo: 1st $282,445 @ 6.50%
2nd $52,964 @ 8.55%
Car 1: $23,624 @ 5.89%
Car 2: $19,048 @ 6.50%
Student loan: $7,062 @ 4.75%
Actions taken this past year:
* Paid off credit card debt
* Began $15,400 total annual contribution to 401(k)
* Opened EmigrantDirect Savings Account (planned saving $7,500/year)
* Got 2 cash back credit card for monthly bills (paid off monthly)
* We're working on selling one of the cars for a cheaper vehicle
* Read many investment books
Questions:
1) We plan to pay off the student loan by 2008 just to get it off of the list of debts. Does anyone feel the same way about eliminating smaller debts even if they are at better rates? My thought is that if there were a financial emergency, it would be one less bill to worry about.
2) We wanted to max out 401(k) contributions before moving on to Roth IRA’s. We will add Roth IRA’s to our investments next year. Is this a bad move?
Thank you all for making this forum such an inspiration for us.
Age: 31, wife in twenties
No kids . . . yet
Combined income: $110,000
Hope to retire in 50’s
Savings/investments
401(k): $12,167
Savings: $2,595
Debt
New condo: 1st $282,445 @ 6.50%
2nd $52,964 @ 8.55%
Car 1: $23,624 @ 5.89%
Car 2: $19,048 @ 6.50%
Student loan: $7,062 @ 4.75%
Actions taken this past year:
* Paid off credit card debt
* Began $15,400 total annual contribution to 401(k)
* Opened EmigrantDirect Savings Account (planned saving $7,500/year)
* Got 2 cash back credit card for monthly bills (paid off monthly)
* We're working on selling one of the cars for a cheaper vehicle
* Read many investment books
Questions:
1) We plan to pay off the student loan by 2008 just to get it off of the list of debts. Does anyone feel the same way about eliminating smaller debts even if they are at better rates? My thought is that if there were a financial emergency, it would be one less bill to worry about.
2) We wanted to max out 401(k) contributions before moving on to Roth IRA’s. We will add Roth IRA’s to our investments next year. Is this a bad move?
Thank you all for making this forum such an inspiration for us.