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Hi! I'm new here....so a little about me:
My husband and I are both teachers and have been for 15 years. We have TRS(Teacher Retirement System) through our state that will kick in when we can retire at 55...9 and 15 years away, respectively.
We worked the snowball last year and paid off all debt except the house and my car. We have 4-6 months of expense(EF) saved. What is my next move? Pay off the car or open the Roth IRA to supplement retirement?
We save roughly 20% of our income. Right now it is in a regular savings with the EF account and we access it for vacation and other occasional fun stuff. I know I should put some money "somewhere" but I am concerned about potentially losing money. I know, I know...no risk, no return.
OK--the numbers:
The car is one year old and we owe about $19,000.00 @ 3% interest.
Car payment is $460 a month. We could easily double the payment and still save at least 10% of our income.
Should I do that or keep paying and start the Roth?
How much should be vacation and fun $$ apart from the EF?
Thanks for the thoughts!
My husband and I are both teachers and have been for 15 years. We have TRS(Teacher Retirement System) through our state that will kick in when we can retire at 55...9 and 15 years away, respectively.
We worked the snowball last year and paid off all debt except the house and my car. We have 4-6 months of expense(EF) saved. What is my next move? Pay off the car or open the Roth IRA to supplement retirement?
We save roughly 20% of our income. Right now it is in a regular savings with the EF account and we access it for vacation and other occasional fun stuff. I know I should put some money "somewhere" but I am concerned about potentially losing money. I know, I know...no risk, no return.
OK--the numbers:
The car is one year old and we owe about $19,000.00 @ 3% interest.
Car payment is $460 a month. We could easily double the payment and still save at least 10% of our income.
Should I do that or keep paying and start the Roth?
How much should be vacation and fun $$ apart from the EF?
Thanks for the thoughts!
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