29 yo - Am I headed in the right direction?
My wife and I are 29 years old, we'll be 30 late this year. We've really been trying to get our retirement on track and would like to get some feed back from others.
Here is a summary of us:
Roth IRA: $16,000 (In CD's)
TD Ameritrade: $6,000 (All Dividen producing stocks)
Purchased our home in 2002, purchase price: $150,000
Down Payment: $30,000
Current Pay-Off: $100,000 (Just Under)
Current Home Value: $150,000
We just purchased a new vehicle, before you say we shouldn't have let me explain. My wife's old vehicle engine blew up, which she had for almost 8 years and put $150,000 miles on it. We had an extra vehicle that she drove in the mean time. We looked at some used SUV's, 2-4 years old, but couldn't find anything reasonable, value or mileage. One vehicle that was on our list was a 4-Door Jeep Wrangler, so we decided to see what a new one would cost. The new one cost us about the same as a 3 year old one with 30,000+ miles on it. So, we got a new Jeep Wrangler 4-Door for $26,500 out the door and the sticker was $29,600. Used ones were going for $23,900-$25,900. We also, decided not to put any money down because we got an interest rate of 3.24% at our local bank.
Here is our 2010 annual investing targets:
My 401(k): $7,500, Company Match: $5,300
Wife 401(k): $4,800; Company Match: $1,600 (She also has a company pension plan)
Roth IRA: $10,000
We will also be paying double payment on the new Jeep until it's paid off, this is typically for any vehicle we've bought. In the past we've made extra payments on our home mortgage, but haven't been and won't be until we have no car payment again.
Now that we're maximizing our Roth IRA, should we put more into our 401(k)'s?