Hi, reading the thread "am I being too aggressive" got me thinking about our own situation so looking for advice here.
I am only breadwinner, make about 120k in 2013. Just my DH and me in the HH.
Age 52- would love to retire before age 60 if possible
I have a pension- appx 45% of salary averaged over 5 highest earning years
Income with raises and bonuses increases about 20% annually
We have 150k in 401k split evenly between a balanced fund and growth fund
Contributing 12,000 this year to 401k and plan on maxing out the IRAs with our catch up provision- our company match is quite low.
We have two traditional IRAs with about 80k in them
About 2k in savings
Debt
14k HELOC at 3.25%
14k car at 2.5%
7k visa at 0% for another 12 months
Current thinking- kick the debt out by end of 2013 (not worried about the cc- will have paid by time interest kicks in) then hit the 401k with all I got- but now I'm wondering should I be moving more money into maxing out the 401k since our interest rates are low on the car and the HELOC? And extending the debt payments into 2014?
I have been really looking forward to the peace of mind associated with being debt free and kicking out the mortgage before retirement (128k balance and I am dedicated to 0 balance at retirement although there are others who do not agree that is important) but now I am also growing concerned about the following:
Opportunity cost
My salary reaching phase out limits that reduce the amount of money we can squirrel away.
Thanks in advance for your advice.
I am only breadwinner, make about 120k in 2013. Just my DH and me in the HH.
Age 52- would love to retire before age 60 if possible
I have a pension- appx 45% of salary averaged over 5 highest earning years
Income with raises and bonuses increases about 20% annually
We have 150k in 401k split evenly between a balanced fund and growth fund
Contributing 12,000 this year to 401k and plan on maxing out the IRAs with our catch up provision- our company match is quite low.
We have two traditional IRAs with about 80k in them
About 2k in savings
Debt
14k HELOC at 3.25%
14k car at 2.5%
7k visa at 0% for another 12 months
Current thinking- kick the debt out by end of 2013 (not worried about the cc- will have paid by time interest kicks in) then hit the 401k with all I got- but now I'm wondering should I be moving more money into maxing out the 401k since our interest rates are low on the car and the HELOC? And extending the debt payments into 2014?
I have been really looking forward to the peace of mind associated with being debt free and kicking out the mortgage before retirement (128k balance and I am dedicated to 0 balance at retirement although there are others who do not agree that is important) but now I am also growing concerned about the following:
Opportunity cost
My salary reaching phase out limits that reduce the amount of money we can squirrel away.
Thanks in advance for your advice.
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