am i on the right track???

[jimmyengland]

here is my current financial picture
Age - 27
Income - 78000 (combined)
401K - 2600 Wife 401 k - 1200 (invested to the point of the match)
Roth - 8000 (was up to 13500 but with the downswing in the mkt )
wife Roth - 5100
Money Market savings - 11000 @ about 2%

Student Loan - 23000 currently @ 2%
Mortgage - 77500 @ 4.99
credit card - 0, Car loan - 0

So this past yr i paid down 10+k on my mortgage. 10k in roths. 11k on student loans (largely due to the dollar gaining strength against the pound). 4k in 401k. couple of home improvements and went on a nice vacation.....

My goals for this yr are to max the roths again, continue to put 6% in our 401k's (up to the match). then aggrisevly pay the mortgage as much as possible. I am planning on leaving the student loans where they are at other than paying the bare min as the rates are soooo low and are based on the inflation rate in the uk which i do not see going much higher anytime soon

I guess my questions are:
1) do you think i am doing enough?
2) am i missing anything?
3) would u suggest me doing anything else? etc etc

Thanks for all your help

[noppenbd]

First off I would say congratulations on a great start. You seem to be living on much less than you make (put a total of 35K towards saving and paying down debts, which is almost 45% of gross), so keep up the good work!

I am debating whether paying extra to your mortgage and student loans is really the best use of extra cash. On the one hand your interest rates are rock bottom (are they fixed or adjustable?) so there really is no rush at all to pay them off. On the other hand, you are contributing almost 18% to retirement already, so there isn't a compelling argument to increase the 401k contributions. You would probably end up better off in the long run by paying the mortgage & SL down on schedule and really pumping up the 401k, but at this rate you could own your home in just 5 years or so, and who am I to argue with that?

Keep up the good work!

[financialnut]

Honestly, any suggestions that I could give would be relatively immaterial compared to what you're currently doing.

Keep up the good work. I think you're doing just fine.

[jimmyengland]

mortgage is 30 yr fixed @4.99%
student loan is variable - It has fluctuated between 1.8% and 4.2% since graduating in 03. I believe its based off inflation in the uk. They assess me once a yr on these payments it is based off my income and the exchange rate.... i havent had to pay that much so far but due to the exchange rate keep dropping (which is good for me in terms of the principal i owe) it is also bad as they are going to jack the paymet up sky high as now it looks like i earn more.

e.g $45000/2= 25000 pounds
45000/1.4 = 32000 pounds

so i expect this to rise pretty sharply when i am reassessed.

Anyone else have any comments on what else i should be doing or further guidance on what i should be doing at my present age??? Thanks for your comments and hel thus far greatly appreciated

[maat55]

Do you have a 6 months EF?
Do you have an car fund?

I would consider paying off the SL before the mortgage due to the high possibility that inflation may rise in the near future.

BTW, you are doing great for your age.

[ukey]

Everyone's portfolio always can be better. But I think you have done well so far. Congrats!

I don't realli see savings/investments under your list though. You might want to explore that portion of your finances. Having money somewhere will make you more confident in your future also. Good luck

[Snodog]

I think you are doing excellent.

We are in a similar position except that after getting the company match and maxing out roth's we are deciding to go back and put more money in the 401k instead of paying off our low fixed rate mortgage. I think we can earn a better rate and we get the tax break but it is a personal decision and there is no right or wrong. It all depends on how much risk your willing to take. We also have the mortgage thru my father so that is a factor.

[whitestripe]

how old is your car? do you think that it may need replacing or repairs any time soon?
are you and your wife thinking of having children in your future?
i am just thinking of things i would do if i were in your position. if you like having all of your savings in one account, as some people do, i would suggest having enough money for six months of expenses, as well as saving for a 'future fund' whether that be a baby fund or a holiday house or a boat or an RV (each to their own!).
maybe you could have a sit down with your wife and have a one year, five year, ten year, thirty year plan. this might help you realise your goals and then you will be even FURTHER ahead of the pack!

[isthisused]

looks great so far , what about some term life ins.?

[jIM_Ohio]

First, you are doing well, quite well. I saw no mention of how much liquid cash you have in the bank... I might increase cash before paying down debt. Probably 6 months expenses in the bank before I would resume paying down the mortgage.

18% to retirement is a good move.