Hi MMM Community,
This is my first post. I'm a recent convert to frugality and the early-retirement mindset. But now I'm worried about my parents. They continue to live with debt and I don't see how they'll ever reach financial independence. As the kid it's not my place to tell them what to do, but I also don't want to see them work until they drop. So I'm curious what other MMM readers think. Their outstanding debts are:
Mortgage: $77,000 at 4%
New car: $26,000 at 1.9%
Student loan (for me): $20,000 at 5.7%
They nearly paid off the house several years ago, but they refinanced to pay for my sister's college education. They earn about $130,000/year before taxes and I think they have about $160,000 in a 401(k) that is managed by a financial planner. The house is valued at $165,000 on Zillow. My dad is 63 and my mom is 58. They both drive about 25 minutes from the suburbs to their jobs downtown. Those are all the numbers that I have.
What should they do? I think at a minimum they should sell the car and move to a smaller house. But I'd like to hear from more experienced MMMers. Any thoughts would be greatly appreciated!