This might be a stupid question, but I'd like input as to what makes the most sense in this situation.
Husband and wife, ages 29 and 27, both working full time.
Husband has $46,000 left in student loan debt @ 4.0% variable rate (which has increased twice in the past 2 years); no other debt aside from mortgage (shared).
Husband contributes 9% to employer account (current balance 26k), and is eligible for pension which would be based on his 5 highest consecutive earning years with the company(last estimate showed expected annual benefit to be around 50-70k depending on age of retirement). Also has old 401k from previous employer currently around 25k.
Wife contributes 9% to 403b (current balance 30k), and also has an old 401k with 5k.
Where we have retirement contributions in place, should we focus all additional resources towards the debt? DH seemed to think a Roth IRA or similar would be the next step, but with such a high amount of student debt remaining, would it be smarter to focus on reducing that balance? We are looking at about $1000 total monthly to work with - either towards student loan or additional retirement avenues.
What would you recommend?
Husband and wife, ages 29 and 27, both working full time.
Husband has $46,000 left in student loan debt @ 4.0% variable rate (which has increased twice in the past 2 years); no other debt aside from mortgage (shared).
Husband contributes 9% to employer account (current balance 26k), and is eligible for pension which would be based on his 5 highest consecutive earning years with the company(last estimate showed expected annual benefit to be around 50-70k depending on age of retirement). Also has old 401k from previous employer currently around 25k.
Wife contributes 9% to 403b (current balance 30k), and also has an old 401k with 5k.
Where we have retirement contributions in place, should we focus all additional resources towards the debt? DH seemed to think a Roth IRA or similar would be the next step, but with such a high amount of student debt remaining, would it be smarter to focus on reducing that balance? We are looking at about $1000 total monthly to work with - either towards student loan or additional retirement avenues.
What would you recommend?
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