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Max out IRA, build up nest egg, or pay of loans faster?
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Date: February 7th, 2010 1:49 PM |
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Date: February 7th, 2010 1:50 PM |
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Date: February 7th, 2010 1:51 PM
but i'm guessing here you mean emergency fund. go with that. |
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Date: February 7th, 2010 1:54 PM |
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Date: February 7th, 2010 1:55 PM |
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Date: February 7th, 2010 1:52 PM
for one thing, inflation might hit eventually, and you don't want to have paid down debt that just lost a bunch of its real value.
for another, you tend to have more money later in life, and your payments will be easier to manage as time moves along.
there's nothing wrong with extinguishing a nub of loans in your 40's or whatever, but there's no reason to do it early. |
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Date: February 8th, 2010 1:03 AM |
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Date: February 8th, 2010 1:32 PM the risks in not paying off debt early are of the 'fuckmeintheass' type For most people, paying off debt will tend to be the best move. For some people who have daddy's money available to bail them out if shit hits the fan--and whose pride allows them to ask for the help--sure, they might be better off investing. |
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Date: June 21st, 2010 7:58 PM |
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Date: June 21st, 2010 8:03 PM |
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Date: February 7th, 2010 1:51 PM |
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Date: February 7th, 2010 1:53 PM |
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Date: February 7th, 2010 1:55 PM |
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Date: February 7th, 2010 1:56 PM
Once the dollar is pulled as the reserve currency, the united states' dynasty will be over. Those with the most guns and that are able to defend their property will be the wealthiest
you heard it here first faggots
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Date: February 8th, 2010 12:24 AM |
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Date: February 7th, 2010 1:56 PM
if so, don't you make too much for a fully deductible IRA, and in that case, why bother? |
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Date: February 7th, 2010 1:58 PM |
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Date: February 7th, 2010 1:58 PM |
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Date: February 7th, 2010 2:01 PM |
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Date: February 7th, 2010 1:56 PM |
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Date: February 7th, 2010 2:29 PM |
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Date: June 21st, 2010 7:56 PM
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Date: February 7th, 2010 3:40 PM
I'd then max out IRA and then 401k.
If you still have cash, then build cash reserves to cover 6-9 months of expenses.
If you STILL have cash left over, then pay off loans.
Start over in the new year, always emphasizing retirement funds.
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Date: February 8th, 2010 10:51 AM |
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Date: February 8th, 2010 1:33 PM Then pay off debt. You don't need a nest egg if you have cc reserves available. |
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Date: February 8th, 2010 10:44 AM step 2. cash reserves = 3 months after-tax pay step 3. max out IRA/401(k) contributions step 4. pay off loans step 5. additional investments/savings |
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Date: June 21st, 2010 7:32 PM |
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Date: June 21st, 2010 7:52 PM
Seven steps to becoming rich:
1) Save up $1,000 for emergencies
2) Pay off all debt (including student loans), other than mortgages
3) Go back to the emergency fund and build it up to 3-6 months of living expenses
4) Invest 15% of your income for retirement
5) Start saving for your kids' college and grad school (if applicable)
6) Pay off mortgage early (if applicable)
7) Build wealth |
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Date: June 21st, 2010 7:59 PM |
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Date: June 21st, 2010 8:07 PM i'd also argue opportunity cost better to have enough $$ on hand to take advantage of great investment opportunities than paying off loans earlier and being cash poor in your 40s with little to invest |
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Date: June 21st, 2010 8:08 PM |
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Date: June 21st, 2010 8:09 PM
in theory, i can pay off the debt more easily once i have more $$$$ |