You got it! I would really like to see the debt gone, but not at the expense of making an obviously bad financial decision.LAlearning wrote:Can I infer you are someone who just doesn't like the feeling of that loan staring back at you?
stan1 wrote:You didn't mention whether you own a house. If you don't and are planning to buy one in the next few years I might rethink that advice and suggest you pay down the student loan.
stan1 wrote:The other option you didn't mention is to reduce your TSP contributions above the match, but in general I think the current year tax deductions are worth leaving that in place. TSP G Fund is at 2.125% for August and has been moving up steadily in recent months. There could be a time in the near future when the G Fund return will be better than 2.5% even without any equities.
scubadiver wrote:Can't say that I'm a fan of deferring the pre-tax contributions. Among other reasons, our MAGI is right up against the threshold for the child tax credit phase out. Reducing our pre-tax savings would almost certainly bump us above this threshold.....which brings up another question of whether or not we should make my wife's IRA contributions to a deductible IRA instead. But that's another thread.
There seems to be a pretty clear consensus towards not foregoing the Roth space. What about the 529 contributions? We're currently putting $100 - $200 per month (on average) towards the 529 account. If I deferred that, we could probably eliminate the student loan in 42 months, if not sooner.
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