Student Loan Payoff

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Student Loan Payoff

Postby amythius » Fri Feb 08, 2013 2:14 pm

Just wanted to share a success story from my family. My wife and I paid off her student loan debt, to the tune of roughly 35k just last week. I got tired of paying the interest, while I had an excess cash problem in our accounts (as I viewed it). I have been doing a bit of obsessive research on finances in the past few years, trying to maximize my successes in life.

A little background if interested:
He: 26, near 27
Her: 28
Built a house in Summer 2010, Married almost 2 years

We currently put in about 10% to our company defined plans (401k and 403). Mine will start matching 3% this year. We both carry pensions at our current employers. I am not sure how long we will both be employed with current employers -- I will definitely jump ship again [Software Industry]. I also max both of our Roth IRAs each year. Oh, and in addition I put 3k in a kids college fund and intend to do so for the next 20 years.

At the end of 2012 a finance snapshot put us somewhere like this:
~75k cash
His IRA: ~33k
His 401: ~ 5k
Her 403: ~2k
His Roth: ~15k
Her Roth: ~5k
College Fund: ~6k

Debts:
~35k student loan (hers)
~6.5k car loan
~200k at 3.25 mortgage

So, I opted to take our high cash volume and pay off the student loans. I now opted to take that payment and apply it towards our mortgage principal, paying roughly 1.5x the amount applying over-payment to principal. This should make my 30 yr an 18 year or so mortg. Proud of us, we both were a little worried. But I feel we need to be even more aggressive with our savings to reach my most prized goal in life (aside from a family) -- to retire at about 52-55, as my parents did.

Just thought I would share a success story. Feel free to chime in on any suggestions seen.

Regards
amythius
 
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Re: Student Loan Payoff

Postby TSR » Fri Feb 08, 2013 5:31 pm

No comments or suggestions, but congratulations!
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Re: Student Loan Payoff

Postby ExcelJunkie » Sat Feb 09, 2013 10:02 am

Congratulations. Hopefully you and your wife find happiness in the flexibility that having less debt provides.

Your post is inspirational as we work down our own student loan debt.
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Re: Student Loan Payoff

Postby Outer Marker » Sat Feb 09, 2013 10:24 am

Congratulations on paying off the student loan debt. With two jobs and ample cash reserves, why keep the car loan? There is not a lot to go on here regarding you general request for advice. You would get a lot of helpful suggestions on building your portfolio and financial plan by posting the following informatoin in a new thread on the "help with personal investments" section of the forum. viewtopic.php?f=1&t=6212
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Re: Student Loan Payoff

Postby goodoboy » Sat Feb 09, 2013 2:15 pm

Congrats on paying off your student loan.

I just paid off my student loan @44k, 5.5% interest. And it feels great. I also refianced the house at 30 year, 3.25%, and pay additional per month to be done in 15 years.

The only remaining debt is car loan at 2.99% and mortage.

If you struggling what to do with extra cash you can always max out the 401k to $17.5k a year like I am. Better than stock picking.
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Re: Student Loan Payoff

Postby amythius » Sun Feb 10, 2013 3:52 pm

Thanks for the encouragement. Yes, I will post in the other forums subsection when I need portfolio advice. Still not quite there yet.

goodoboy, thats great. Congrats as well. Nice on the extra mortgage payments, I also plan to most likely finish it in about 15 years with more contributions later.

And the car loan is like 2%, so no rush yet. And yes I plan to increase 401k soon.
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