Author Topic: Some debt and investing question  (Read 2144 times)

blackjack

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Some debt and investing question
« on: March 29, 2015, 05:07:50 PM »
When's it best to open a taxable account?
age 31`
Ideally like to pay off my car loan (17k) and mortgage asap (220k)
income 95k
Roth 401k (8% income) which is about $150 a week and maxing out my Roth IRA
current 401k $9000
Prudential NO MATCH (company gives $100 a month per 1 year of service pension plan, retiring at age 50 would give me about 3k a month)
 BOND MARKET INDEX FUND   Fixed Income - Intermediate Bond 15%
 S&P 500 EQUITY INDEX FUND   Large Cap Stock - Blend 30%
 S&P 400 MIDCAP INDEX FUND Mid Cap Stock - Blend 20%
 RUSSELL 2000 INDEX FUND Small Cap Stock - Blend 20%
 INTERNATIONAL INDEX FUND   International Stock - Blend 15%

Vangaurd Roth IRA ($10,000) Target fund 2045 date

about 5,000 in energceny..

should i lower my 401k amount to help pay off my car and mortgage early?
should i start a taxable account and then once thats pretty heavy that would be my mortgage money?
am i generally on the right path?
trying to figure out best way to tackle car and mortage debt
thanx
« Last Edit: March 29, 2015, 05:10:28 PM by blackjack »

MDM

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Re: Some debt and investing question
« Reply #1 on: March 29, 2015, 05:27:32 PM »
1) When's it best to open a taxable account?
2) should i lower my 401k amount to help pay off my car and mortgage early?
3) should i start a taxable account and then once thats pretty heavy that would be my mortgage money?
4) am i generally on the right path?
1) After you have used up the annual $18K +$5.5K available for 401k and IRA accounts
2) Depends on the interest rates you are paying on the loans.  Yes if the loans are >4-5%, no if less than 3-4%, flip a coin in between
3) Yes, provided #1 is accomplished
4) Yes if you do #1-3.

blackjack

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Re: Some debt and investing question
« Reply #2 on: March 29, 2015, 06:09:07 PM »
thank you for that..

its going to be tough to max out the 401k.... but i'll do my best =]
i guess i'll try to tackle the car loan asap

rpr

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Re: Some debt and investing question
« Reply #3 on: March 29, 2015, 06:14:47 PM »
blackjack -- start slowly. Increase contributions by $100 every couple months. Track your spending.   You have a good income and are also living in a reasonable cost of living area.  Take advantage of it.
What are the interest rates on the car loan and mortgage?


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blackjack

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Re: Some debt and investing question
« Reply #4 on: March 29, 2015, 07:04:31 PM »
hi
yeah that sounds like a good strategy....

the mortgage is 4.125%, 30years
car loan is 4.54% , 5.5 years

rpr

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Re: Some debt and investing question
« Reply #5 on: March 29, 2015, 07:06:54 PM »
I would do as MDM suggested.


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