I wanted to start by mentioning I have read the following.
WHAT
0. Establish an emergency fund to your satisfaction
1. Contribute to your 401k up to any company match
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.
3. Max HSA
4. Max Traditional IRA or Roth (or backdoor Roth) based on income level
5. Max 401k (if 401k fees are lower than available in an IRA, or if you need the 401k deduction to be eligible for a tIRA, swap #4 and #5)
6. Fund mega backdoor Roth if applicable
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.
8. Invest in a taxable account with any extra.
WHY
0. Give yourself at least enough buffer to avoid worries about bouncing checks
1. Company match rates are likely the highest percent return you can get on your money
2. When the guaranteed return is this high, take it.
3. HSA funds are totally tax free when used for medical expenses, making the HSA better than either traditional or Roth IRAs for that purpose.
At worst, the HSA behaves much the same as a tIRA after age 65.
4. Rule of thumb: traditional if current federal marginal rate is 25%; Roth if 10% or lower, or if MAGI is too high to deduct a traditional IRA; flip a coin otherwise.
See Credits can make Traditional better than Roth for lower incomes and other posts in that thread about some exceptions to the rule.
See Traditional versus Roth - Bogleheads for even more details and exceptions. State tax (or lack thereof) should also be considered.
The 'Calculations' tab in the Case Study Spreadsheet can show marginal rates for savings or withdrawals*.
5. See #4 for choice of traditional or Roth for 401k. In a 401k there are no income-based limits for deductions or contributions.
6. Applicability depends on the rules for the specific 401k
7. Again, take the risk-free return if high enough. Note that embedded in "high enough" is the assumption that your alternative is "all stocks" or a "fund of funds"
(e.g., target retirement date) that provides a blend of stock and bond returns. If you wish to consider separate bond funds, compare the yield on a fund
with a duration similar to the time remaining on the loan, and put your money toward the one with the higher interest/yield.
8. Because any earnings, even if taxed, will help your FI journey.
I'll list my relevant assets/debts next.
Assets:
Vanguard Roth IRA: $65,964
Company 401k (invested with Vanguard): $35,117
Vanguard Traditional IRA: $6,001
Checking/Savings: $1,406
HSA*: $225.08
Total Assets: $108,774
Debts:
Student Loans (refinanced with SoFi thanks to MMM): $23,501 (4.74% variable rate; has been going up by about 0.01%/month lately)
Auto Loan: $14,414 (0.9%)
Total Debts: $37,915
Net Worth: $70,859 (two years ago I was around NEGATIVE $5,000!)
*The HSA is fairly new, and next year it will match dollar for dollar for $600.
I wanted to attempt to follow the above quoted recommended order for U.S. Mustachians, and I figured having some extra eyes on me could help catch mistakes I might be making. I googled the 10-year treasury note yield, and unless I'm looking at the wrong figure it said 2.25%, which makes #2 refer to ~7.25% and #7 refer to ~5.25%. Here goes...
0) I am comfortable with a small emergency fund. I keep at least $1000 cash and could use Roth contributions as an emergency as well. My job security is very high, and I'm constantly contacted by job recruiters trying to get me to go elsewhere.
1) I max 401k to $18k.
2) No debts at 7.25%...skipping for now to next...
3) Maxing HSA next priority. Check.
4) Maxing out traditional IRA (gross income around $73k+). Check.
5) Maxing 401k already. Check.
6) N/A
7) No debts at 5.25% (but student loan is close and rate might rise over time)... skipping for now to next...
8) I don't currently have a taxable account...
I guess my question is primarily at steps 7 and 8. Is the consensus that I should only make minimum payments on my student loan if the rate remains less than ~3% higher than the 10 year treasury note yield (~5.25% today) if that allows for me to open a taxable account with what extra remains? I've currently been putting all remaining income toward reducing that student loan debt, thinking I'd open a taxable account after it is gone. I'm living on about $19k/year and trying to hold steady at this level.