[pearlieq]

I think your first priority right now should be to continue all of your regular debt payments, and begin to scrape together a small savings fund--maybe around $2,000 to $3,000. That would be enough to cover most catastrophes such as big car problems, major home repairs, etc. That way you won't have to go into debt if something happens (and it ALWAYS does).

I think your retirement contributions are OK for now. You're taking advantage of the company match, which is good. Your asset allocation should be fairly agressive. I tend to prefer a simpler, easier approach to investing. I like targeted funds, which you choose based on the date you want to retire. If you intend to retire in or around 2030, you would pick that fund, and the fund managers will balance and re-balance your portfolio as the years go on. If your 401k is with a reputable brokerage house, you might want to look into those.

Another simple solution is a variation on the "Couch Potato Portfolio" where you would subtract your age from 100. The number you get equals the amount of your portfolio that should be invested in a broad stock index fund. The remaining portion would be invested in a bond index fund. It's not flashy, but it will get the job done.

Once you accumulate your 2-3k savings, I would keep your retirement savings as they are and focus your money on paying down your debt. You can either start with the smallest bill and pay extra on that until it's paid off, and then move on to the next biggest bill, etc. Or you can start paying on the bill with the highest interest rate, then move on to the one with the next highest rate, etc. You'll save more money if you pay by interest rate, but paying off some of the smaller bills first tends to give people a lift and make them more motivated. The choice is yours.

Once the debt is under control, you can start accumulating more savings, and begin to think about beefing up your retirement contributions. Once your retirment contributions are where you'd like them to be, then you can start thinking about college for your son.

I know it's hard to hear as a parent, but his college fund needs to be pretty low on the priority list. When college time comes around, there are tons of options to cut costs and to get financing. There are no loans or grants for retirement!

Good luck to you! You're asking the right questions and are setting yourself up for a good future. And congrats to you for sticking with the debt program all these 5 years. I bet it feels great to be almost done!