Financial Check Up - Need Help!

[GoodSteward]

The 401k is a great deal since it is pretax money.

Unless it is based on a Roth as well. I recently changed mine over once the company added it as an option(recently changed retirement companies). I left the traditional alone and jumped to adding only to the Roth. I only have 3 years in so it didn't shake things up much.

[FLA]

There are many that don't favor how I manage my EF, but I am going to share it with you anyway. 6 months expenses is commonly recommended for the EF, with that money being held in savings. I only keep 3 months in savings and focus on maxing out both of our Roth IRAs each year. Contributions to your Roth can be withdrawn at any time.

I used my Roth for an EF for years and never needed it. Then I got sick, so I started saving from paychecks and disability to create a 6 mos EF that is not in the Roth. it worked well for many, many years, knowing the Roth contributions were there. In fact, it's still working because I know that money is there should I need it for a bigger emergency.

[DaveInPgh]

I used my Roth for an EF for years and never needed it. Then I got sick, so I started saving from paychecks and disability to create a 6 mos EF that is not in the Roth. it worked well for many, many years, knowing the Roth contributions were there. In fact, it's still working because I know that money is there should I need it for a bigger emergency.

I hope you are no longer sick.

Yes, placing that focus on my and my wife's Roths has me feeling more at ease about being able to handle a bigger emergency.

[cashisking500]

i'm hoping you all can steer me in the right direction on what we should be doing. I want your input on how we (wife and I) are doing financially...

Age: 32/Wife: 32 - No children
Combined Gross Income: $108,000 per year
401K: Combined $68,000
Roth: Combined $11,000

We are contributing 10% of our gross monthly income to 401K and Roths.

Emergency Fund/Cash: $17,500

Debt:

Mortgage: $180,000 (Worth $200,000)
Car Loan 1: $12,900 left (2.74% rate, 38 months left on 60 month loan)
Car Loan 2: $13,500 left (0.9% rate, 52 months left on 60 month loan)

We typically have $1,000 left over at the end of the month, so should I not put that into savings and use it to pay down this debt? Or do I use the Dave Ramsey method and take 13k from EF to pay down car loan?

Are we behind in retirement savings?

Thanks for your advice!

Just an update to this as I was going back through some of my old posts...our situation is now the following:

Age: Me: 33/ Wife: 33
No children
Combined Gross Income: $124,000 (this just shot up from $111,000 last week)
Take Home Pay: $7,050 per month
401K: $77,000 combined (I contribute 5% with 5% match, she contributes 5% with 3% match)
Roth IRA: $18,000 combined (I max Roth, she currently contributes $150 a month, but we will be maxing it very soon)
Mortgage: Just refinanced to a 20 year term, 3.625% rate...mortgage is now just 19% of net income with $182,000 balance

Expenses run us about $5,100 per month

Debt: Car loan 1: $9,350 left; Car Loan 2: $10,800 left

Emergency Fund: $23,500

We plan to pay off Car 1 at end of October. I project we can do this and stiff have over $20,000 left in emergency fund at that time.

I feel like we have improved, thanks at least, in part, to advice received on this forum. Thank you!

[FLA]

well done!

[Mandy63]

Looks like you have made some really good progress. Nice job.