Numerous loans need to be paid, which one to attack first?

[jpg7n16]

Steve, when I leave I will get lump sum check.

Also, I will be recieving roughly $9,000 from overtime over the next three months. I'm thinking putting this money in a Roth?

This money will be moving from a pretax pension - I'd look to roll into a traditional IRA if possible. This would avoid any tax implications today. You are trying to free up cash to eliminate debt, not pay out cash towards unnecessary taxes. Converting to a Roth would require you to pay taxes today.

When you leave your firm, you should discuss with the HR/benefits/payroll dept what your options are for rolling the money over to an IRA as opposed to taking a check for the balance.

It may be an option.

Publication 575 (2010), Pension and Annuity Income

[Frugal]

I agree that student loans should be paid down first ideally, if they have the highest interest rate. I also am stuck in a not so fun situation of trying extremely hard to pay down student loans with a 6.8% interest rate on most of them (I love how everyone thinks federally subsidized loans are so great...doesn't sound like low interest to me! We pay MUCH less interest on our house than on my stupid student loans!).

If you take the approach I did of paying off the highest interest rates first, it can really bring down the principal. I estimate I have already saved myself about $2,000-$3,000 in interest by scrimping and saving extra to pay down the principal on my highest interest rate student loans.

[esb3357]

Personally I would keep the rental house. How much "money" a month is it costing you? If you are not making any month but not losing any month then I would keep it. As long as you are breaking even you are making money because someone else is paying your mortgage. My parents have had a rental house for the last 30 years. My mom said while it has been a lot of work it will be a great retirement device. Especially for a stay at home mom.

I know I probably will be the odd one out but this is what I would do (this is what we actually are doing ourselves so I am not giving any advice I am not personally doing). I would start budgeting at one income NOW. Pay off the car the first. Than the student loans and worry about the mortgages last. I would increase your 401K to 10% and do the same with your wives and max your ROTHS. I was always taught that your retirement should ALWAYS be 10% and get use to not having it.

Half of my salary goes in to the emergency fund the other half goes into long term savings but not retirement. While no debt is good, mortgages and student loans get tax write offs. Plus what are you going to be making in the market versus what are you loan rates. I would not pay off my house at the expense of not having any other retirement. Remember having a few baskets with eggs in it is better than just on basket.