help me with strategy

[disneysteve]

I just can't see the point of thousands of dollars sitting in the EF earning 5% when there are outstanding debts accumulating interest at a faster rate. I feel like we're better off to keep our EF at say $5000 for now and really address the debt. It truly can be paid off within less than a year if we decide that's our priority.

I wouldn't argue with that plan.

[autoxer]

DH's IRA situation is complicated, as a self-employed person he is eligible for a different kind of IRA where he can contribute more than 4K. He can apparently contribute 25% of his income up to $44,000. But it's hard to figure out all the options and what he really CAN contribute, since we don't tend to know until tax time how much he really made in income. I realize you can still contribute up until April of the next year...but not knowing what his cap will be makes it difficult to contribute throughout the year.

I think we could start making contributions based on his income from last year, maybe?

Yes, just get it started. Don't worry about contributing too much until tax time. If you withdraw the excess contributions by the due date of your tax return, then there is no penalty.

[PrincessPerky]

Psychologically is kinda more important than perfect numbers, so long as all the numbers are getting you out of debt and into comfortable retirement, I think it matters more what you two can decide together than the 'one right way'

sounds like he is unwilling to do more than 100 on the CC, so drop it for now, and be great full he isn't running it up.

If you are happy with how your retirement is coming along and it will cover both of you, I wouldn't worry about forcing him to pay into it. Unless someone else knows more than I (which most posters here do) Not that I wouldn't aim for it in the future, just take the battle slow and steady.

As to the car vs student loan, I would go by the numbers so long as the husband is ok with it (which other math experts have said SL right?), and if he isn't, so long as he is paying on some debt, eh, not gonna kill you one way or the other.

As to the EF...I would put some into it as you pay off debt, but not a lot...cause psychologically when you are done with the debt you have that 'wow 1000 to use!' and you want to have some of the saving already automatic....all about the psych to me. I tis easier to up a payment than to start one, so having it there is useful IMO.