Author Topic: Where to stash my 'Stash?  (Read 1182 times)

tomsonaut

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Where to stash my 'Stash?
« on: October 19, 2017, 04:46:09 PM »
Hey all! Relatively new to the MMM blog and brand-spanking new to the forum in search of some sound financial advice. A quick about me: I just finished graduate school in May with a whopping $110k in student loan debt at 5.3-5.6% and live in the really, really fraking expensive (but otherwise quite lovely) city of Boulder, CO, just down the road from the MMM himself. The upside: I have an awesome job as an engineer with one of the University's research labs (sko Buffs!) that affords me a nice work/life balance while still raking in some pretty serious piles of dough. I share a two bedroom apartment with my girlfriend and one of our friends within walking distance from work that keeps my monthly bills very low (~$800/mo for rent, utilities, etc.) for the area and get a 10% match on 5% contributions to a 401a with the university. I also contribute an additional 15% (combined) before tax to the great 457 and 403b plans that are offered. After taxes and other deductions for vision insurance (blind as a bat and getting blinder every day) and HSA contributions, I shovel roughly $1950 at my student loan payments for a pay-off date in ~5 years. On top of this, I contribute $500 after tax to a Wealthfront personal investment account which I'm nominally using as a house down-payment fund even though I'm almost certainly better off renting given the state of the local real estate market. I don't really keep track of the rest of my spending after that, because while I'm sure there's room for greater efficiency, I like to leave a little room for life (I know, that's some wussypants shit right there).

My question to you financial whiz kids out there is this: am I really making the best use of that $500 after tax? Should I be squirreling it away before tax instead, working on hitting the maximum contributions of my 457 and/or 403b? Or should I be putting it in an IRA? Roth or Traditional? Or, should I be dumping that on to the garbage fire that is my student loans for an even earlier payoff date? I drive a 1996 Toyota Corolla paid in full (current mileage is well under 5k a year, but I am guilty of the occasional car-clown habit), don't have any other long-term debt, and I keep my reward credit cards paid off in full.

terran

  • Magnum Stache
  • ******
  • Posts: 3476
Re: Where to stash my 'Stash?
« Reply #1 on: October 19, 2017, 05:12:06 PM »
I would either up the student loan repayment, or up the 403b/457 contributions. See https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153


rpr

  • Pencil Stache
  • ****
  • Posts: 665
Re: Where to stash my 'Stash?
« Reply #2 on: October 19, 2017, 05:47:37 PM »
You are doing a great job with your finances. Any of the choices is fine. Given the somewhat higher rates on the student loans, I'd be inclined to shove as much as possible into that even stopping the 403b/457 plans. Once paid off, you can strive to max both of them out.