Hello,
Relatively new to the site and it has been a joy to read thus far. I was hoping for someone to point me in the right direction after a quick breakdown of my financial scenario. I am 27 and my wife is 25. After I graduated I did an okay job dumping money into my 401 and Roth, but then I started playing golf/got married/paid for a wedding. Looking to get back on track, as I am now serious about retiring early.
Me
Salary: $80,000 b/w base and commission- trending towards making closer to $100k in 2015
Roth IRA: Vanguard Target 2055 Retirement Fund (assume I'm going to get destroyed for this?)
$16,000
Currently investing $250/mo in Roth
401k: $35,000 again a Target 2055 fund
Currently investing 4% in 401
Wife
Salary: $51,000
Roth IRA: $3,000
Currently investing $70/mo in Roth
401k: $12,000
Currently investing 4% in 401
Other Stuff
- paid $30,000 for a wedding in 2014. No debt left after that.
- recently pulled out $3,000 after being conned into buying a bunch of whole life insurance by my (then) financial adviser for three years.
- saving $2,000/mo for a house- currently about $6,500 in the fund
- 0 credit card debt
- $18,000 in student loans at about 6% interest
- both cars paid off
When I buy a house early next year, I will be looking to increase the amount in all investments.
- do we pay off student loans first?
- am I throwing away money with the Target Retirement Fund?
- do I increase the contributions in 401 or roth first? I have read you max roth first.
- any other general advice?
Thanks very much for the help!