Author Topic: Looking for some feedback  (Read 3142 times)

soczab

  • 5 O'Clock Shadow
  • *
  • Posts: 7
Looking for some feedback
« on: April 17, 2013, 03:53:24 PM »
Hopefully this is the right forum for this (i wasnt sure if it fit here or the investor forum more)!  I've been out of grad school and working for a little under a year now, and i figured its more than time to get serious about figuring out how to invest/adhering to a budget and so forth (thank you mint.com for the budget help!)

Basically, ive got no credit card debt or mortgage, though I do have a moderate car loan and a giganto pile of student loan debt (since I work in a non-profit, i've actually calculated ill have far more of it forgiven than paid heh.  A nice bonus since the job doesnt pay all that well).

I've been socking away 10% of my pre-tax income in my job's 403(b) plan (and they will start matching up to that 10% at the end of the year), and i've been dropping 100 dollars a month into betterment.com mostly because it was a no think sorta thing to do.    I've got a thousand in betterment, and a few thousand in a generic savings account (which reading this forum has given me the sense of it being a bad place to sock money).

Anyway, mostly im looking for some advice on where to put what free income i have, and how to get started with some serious savings (on a not horrible but not that impressive of a salary).  Should i be opening an IRA?   Trying to invest (but not in a retirement account) with someone like Vanguard?  Trying to max out that 403 more?  Something else?  Any advice you all had in helping me make an educated decision would be great.

hoodedfalcon

  • Bristles
  • ***
  • Posts: 441
  • Location: Deep and Dirty
Re: Looking for some feedback
« Reply #1 on: April 17, 2013, 06:01:10 PM »
Based on your comment about the loans being forgiven, I am guessing you have federal student loans, are on IBR/PAYE and you are planning on PSLF? If so, obviously there is less incentive to put all that extra money towards the loans, since hopefully they will be forgiven anyway. At least that is how I am approaching my federal student loan debt. It feels sort of uncomfortable, but I have plenty of private loans to make me uncomfortable too. :) Anyway. I just wanted to say I feel your pain.

Zaga

  • Handlebar Stache
  • *****
  • Posts: 2175
  • Age: 39
  • Location: North of Pittsburgh, PA
    • A Wall of Hats
Re: Looking for some feedback
« Reply #2 on: April 17, 2013, 06:19:12 PM »
I'd pay off the car first of all.  Then since you will have the student debt forgiven after some time, make sure you are following all of the rules for that and read a few investment books like Mutual Funds for Dummies and Boglehead's Guide to Investing.

soczab

  • 5 O'Clock Shadow
  • *
  • Posts: 7
Re: Looking for some feedback
« Reply #3 on: April 17, 2013, 06:25:49 PM »
yup hooded, IBR (im bad at acronyms so no idea what PLSF is, but probably heh.  Subs and unsub federal lones forgiven after 120 payments at a non-profit).  and yeah i agree with you it feels so weird to see the mountain of student loan debt and just be waiting it out essentially.  But on paper seemed like the smart move.

hoodedfalcon

  • Bristles
  • ***
  • Posts: 441
  • Location: Deep and Dirty
Re: Looking for some feedback
« Reply #4 on: April 17, 2013, 06:46:24 PM »
PSLF=Public Service Loan Forgiveness. I have about 7.5 years left before I make it over that mountain.

Yeah, I'd focus on getting that car loan taken care of first of all. Sounds like you are doing what you need to do for the employer match (10% match is pretty awesome). Good luck!