A little background if interested:
He: 26, near 27
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:
His IRA: ~33k
His 401: ~ 5k
Her 403: ~2k
His Roth: ~15k
Her Roth: ~5k
College Fund: ~6k
~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.
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.
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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