I still post on the bump bf and wm boards, but when I went to mm it really doesn't show up for me. It's weird but I can't get to the mm board anymore. I'm glad I'm back here again, after dd2 I just have not had time to come on here.
Post by thatgirl2478 on Jan 9, 2013 14:20:22 GMT -5
ok - so what's the beef:
1. That she only has 1,000 set a side for retirement? 2. That she has ret in her 'e fund'? 3. That she has her 1,000 'retirement' in a vanguard targeted date fund?
Just to clear things up, DR's retirement advice is to put 15% of gross pay into retirement. He has you do the minimum in your 401K to get the employer match, then you go to a Roth. If you max that and haven't hit 15%, you go back and put more in your 401K
Just to clear things up, DR's retirement advice is to put 15% of gross pay into retirement. He has you do the minimum in your 401K to get the employer match, then you go to a Roth. If you max that and haven't hit 15%, you go back and put more in your 401K
This is correct, and I very much agree with his order (401K to get match, then Roth, then back to 401K)
What many people here do NOT agree with is that you should not do this until all non-house debt is gone.
Just to clear things up, DR's retirement advice is to put 15% of gross pay into retirement. He has you do the minimum in your 401K to get the employer match, then you go to a Roth. If you max that and haven't hit 15%, you go back and put more in your 401K
But its Baby step 4-- AFTER you pay off your debt and then have 3-6 months in savings.
Just to clear things up, DR's retirement advice is to put 15% of gross pay into retirement. He has you do the minimum in your 401K to get the employer match, then you go to a Roth. If you max that and haven't hit 15%, you go back and put more in your 401K
But its Baby step 4-- AFTER you pay off your debt and then have 3-6 months in savings.
Yep! At which point it's super easy to do because you're free from other payments.
Honestly, we've debated what to do on the retirement aspect of DRs plan (as I've posted here) and we are putting some into retirement even though we're on baby step #2. I understand why DR has you do it... I also understand why so many aren't comfortable with it. If we couldn't get out of debt in < 2 years while still contributing to retirement, we'd probably stop contributing completely to get out from under those debts and get our lives back to where we want to be.
Nevemind, did you come to this thread from the old MM?
Nope. But we are DR fans in our house. Mostly because we've tried other plans and this is the only one that is actually getting us on track. I have a hard time hating a man that is finally getting us out of debt
Yep! At which point it's super easy to do because you're free from other payments.
Honestly, we've debated what to do on the retirement aspect of DRs plan (as I've posted here) and we are putting some into retirement even though we're on baby step #2. I understand why DR has you do it... I also understand why so many aren't comfortable with it. If we couldn't get out of debt in < 2 years while still contributing to retirement, we'd probably stop contributing completely to get out from under those debts and get our lives back to where we want to be.
um, see the other post. Some of us wont be debt free for years because there is simply too much. Educated people often have 200-300K in student loans. The time wasted not putting money into retirement will cost some people millions in retirement.