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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 Author: nubile blathering boiling water Given that I won't have enough money to do all three, which should take priority? (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042511) |
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Date: February 7th, 2010 1:50 PM Author: Umber Library hookers and blow (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042521) |
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Date: February 7th, 2010 1:51 PM Author: Razzle Party Of The First Part Dopamine nest egg usually is the same as retirement plan.
but i'm guessing here you mean emergency fund. go with that. |
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Date: February 7th, 2010 1:54 PM Author: nubile blathering boiling water How much of one do you think I need? I was thinking ITE I'd need at least 40k. I think I could live on that for a year if I moved out of NYC (which I'd def do if I got laid off). (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042601) |
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Date: February 7th, 2010 1:55 PM Author: Razzle Party Of The First Part Dopamine that sounds reasonable (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042610) |
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Date: February 7th, 2010 1:52 PM Author: amethyst range genital piercing paying off debt early is just silly.
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 Author: flickering ratface Lol don't worry about the thousands of dollars of accured interest (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14051953) |
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Date: February 8th, 2010 1:32 PM Author: Hairraiser Hell there are risks in paying off debt early, but they are of the 'oh shucks' type 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 Author: Hideous gunner halford interest? (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#15307545) |
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Date: June 21st, 2010 8:03 PM Author: Blue pit Let me guess, you are one of these assholes with the student loans at 2% or some shit (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#15307623) |
Date: February 7th, 2010 1:51 PM Author: tripping national define nest egg (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042537) |
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Date: February 7th, 2010 1:53 PM Author: nubile blathering boiling water Cash reserves. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042583) |
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Date: February 7th, 2010 1:55 PM Author: tripping national Ah. That, until you have enough to live off of for a few months. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042621) |
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Date: February 7th, 2010 1:56 PM Author: Umber Library stock up on guns, ammunition, cigarettes, and canned goods
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 Author: angry boyish whorehouse yarmulke nuh-uh. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14051489) |
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Date: February 7th, 2010 1:56 PM Author: motley lettuce community account are you making market?
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 Author: nubile blathering boiling water Sorry, meant 401k. Still hungover. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042666) |
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Date: February 7th, 2010 1:58 PM Author: motley lettuce community account does your employer match at all? (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042670) |
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Date: February 7th, 2010 2:01 PM Author: nubile blathering boiling water Does any BIGLAW match? If so, tell me. I'm being screwed. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042702) |
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Date: February 7th, 2010 1:56 PM Author: Spectacular indirect expression what kind of dough are your parents sitting on (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14042638) |
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Date: February 7th, 2010 2:29 PM Author: nubile blathering boiling water Single mom retired on fixed income. We are poars. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14043031) |
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Date: June 21st, 2010 7:56 PM Author: curious poppy station WTF is this "fixed income" B.S.? The same could be said for anyone who earns a salary (as opposed to hourly pay).
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Date: February 7th, 2010 3:40 PM Author: Concupiscible dingle berry I'd build up cash reserves that cover 3 months of expenses first.
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 Author: Beady-eyed Honey-headed Piazza would you recommend this method if the op wants to buy property in the (relatively) near future? (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#14053887) |
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Date: February 8th, 2010 1:33 PM Author: Hairraiser Hell Credit cards are like a nest egg. Pay them off before debt. 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 Author: charcoal stag film psychic step 1. pay off loan minimums - never be late on a payment (corollary - pay off all CCs in full each month) 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 Author: Learning disabled passionate personal credit line only 3 months cash reserves? seems a bit risky. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#15307303) |
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Date: June 21st, 2010 7:52 PM Author: curious poppy station Pay off debt first. You don't need to be investing when you're broke.
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 Author: Gay autistic locus fanboi fuck this, as a recently unemployed dude, you want to build up a fucking year of savings enough to cover living comfortably. 3 months is laughable, if shit hits the fan, the pressure is way too much. i would max out your 401k as well, but until you have a substantial war chest id lay off the heavy loan payments (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#15307561) |
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Date: June 21st, 2010 8:07 PM Author: Vermilion Startling Resort Jap correct i'd also argue opportunity cost better to have enough $$ on hand to take advantage of great investment opportunities than paying off loans earlier and being cash poor in your 40s with little to invest |
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Date: June 21st, 2010 8:08 PM Author: curious poppy station Broke people should not be investing, period. See above. You need to follow the 7 steps in that order. (http://www.autoadmit.com/thread.php?thread_id=1215031&forum_id=2#15307677) |
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Date: June 21st, 2010 8:09 PM Author: Vermilion Startling Resort Jap while that's a very credited approach for nthe conservative individual, I'd rather have the potential to make money sooner than simply be debt-free
in theory, i can pay off the debt more easily once i have more $$$$ |