Author Topic: Savings, Retirement, or Student Loans  (Read 1535 times)

lbonga1

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Savings, Retirement, or Student Loans
« on: May 14, 2016, 02:03:03 PM »
I could use some help deciding where to focus my efforts in my current situation. I recently started a new job, with a salary of $45k. I am eligible for their 401k after 90 days, but I reviewed the options, and they just aren't worth it. No match, and the cheapest funds worth contributing to has fees of .09% or higher. I am also currently in school working towards an MA in software engineering, currently quarter-time but will need to go to at least half-time in fall (I'm required to finish the program within 3 years). I have $38k in student loans from my undergrad, with about 2/3 of that amount unsubsidized at 6.55%. The rest is at 3.25-4.15%. When I go to half-time at school, I won't have to pay the interest on the lower interest loans, but will continue to pay interest on the unsubsidized loans. I am trying not to take out any loans for my MA, as my mom is loaning me a majority at 1%.
To further add to my crazy busy life, I recently found out I am pregnant, due on Christmas Eve. My job does not offer paid maternity, but with CA laws, I will be able to take up to 12 weeks off (6 weeks of state disability pay, and the rest unpaid). I will have about a week of vacation time to supplement. I have two other children (3 and 1.5 years old) that my FI stays home with, so daycare costs are not a concern.
So here's what I'm wondering. I know we'll need to save money for baby expenses and for me to take the time off work, but with any extra money, should I put it into an IRA (Roth or traditional?) or pay down the student loans? Or I could just stuff it in my 5% interest savings account for now since we'd also like to save for a house? With the student loans, any extra payments go toward interest first, then the highest interest loans. I think there's currently about $5.5k in interest accumulated. Let me know if I should include any more information.

Sibley

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Re: Savings, Retirement, or Student Loans
« Reply #1 on: May 14, 2016, 03:13:52 PM »
So, you're pregnant, and your SO doesn't work? If you don't have a good emergency fund, that's priority #1 right now. Otherwise you'll be going into credit card debt to survive. Whatever you don't end up needing to live on will become the basis of your emergency fund once you go back to work.


kpd905

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Re: Savings, Retirement, or Student Loans
« Reply #2 on: May 14, 2016, 04:56:10 PM »
No match, and the cheapest funds worth contributing to has fees of .09% or higher.

Do you mean 0.9%? Because 0.09% is extremely low.

lbonga1

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Re: Savings, Retirement, or Student Loans
« Reply #3 on: May 14, 2016, 05:00:50 PM »
No match, and the cheapest funds worth contributing to has fees of .09% or higher.

Do you mean 0.9%? Because 0.09% is extremely low.

Yes, 0.9%. Sorry for the typo.

ShoulderThingThatGoesUp

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Re: Savings, Retirement, or Student Loans
« Reply #4 on: May 15, 2016, 04:09:34 AM »
Can you stop and restart the Master's program?