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.
leveraging. compounded interest.
look up those terms.
I get both those terms really, I do.
THEORETICALLY someone who has 200 - 300k in student loan debt would also have a nice sized income - right? What's stopping this person from paying off their debt in 2 - 3 years besides discipline & living below their means.
Now, legitimately, not everyone who has 200 - 300k in student loan debt has a 6 figure income. However, then we're debating the merits of getting into MASSIVE student loan debt for a low paying job rather than the original topic of paying of debt vs saving for retirement.
Again, if you can pay off your debts in 2 - 3 years, you're not losing THAT much leverage or compound interest. Plus no where does it say in DR's plan that you can't contribute some (<15%) in a retirement plan before step 4!
I would pay them off in 2-3 years from NOW- after paying them off for 7 years already. I was paying them down before life got in the way and threw me a $16,500 daycare payment.
And I dont think you do get the terms. Because if you did, you wouldn't follow DR.
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?
She has $1600 set aside. In a regular savings account. I suggested a Vanguard target date fund as they have a minimum investment of 1k.
The beef (for me) was that no one on that board ever advises retirement, it's all DR debt payoff without thinking about a more varied priority list. And then someone was snarky to me, so I have a beef with them.