Badger
Thinks s/he gets paid by the post
- Joined
- Nov 2, 2008
- Messages
- 3,438
Every one has their favorite plan based on their particular circumstances. In our case we were both in low income careers putting us in the 15% tax bracket. Our home was modest but had a 8.75% mortgage years ago when we were 40 yrs old. Since we were at a point where any interest was not enough to help us itemize our tax we decided to hold off on retirement savings and make double payments with the second payment to reduce the principal. Neither of us had a 403b that had matching funds so no advantage there. If we did we would probably put away up to the matching amount. After a few years of peanut butter sandwiches the house was paid off and the feeling was great. I really hate making payments and now refuse to pay for anything on time. Once the house was ours we continued with the amount we had been making on the mortgage and plugged it all into maxing our both our 403b and Roth IRAs until we retired. The last few years of working we even converted some of the IRA money to Roth. Probably not the best plan but it was what we could understand. We now have 0 debt of any kind with retirement investments that will take care of us until the bucket is kicked and then there will be enough (if they have planned and managed carefully) for the kids to have a nice retirement.
Cheers!
Cheers!