Post by oldienewbie on Sept 26, 2012 13:43:11 GMT -5
Mainly I am concerned with retirement but would love your thoughts on our overall situation. (sorry for any typos posting from phone)
Income $78000 annual
Takehome $4600 monthly....after taxes, insurance, 401k contributions, dh also is required to put 6% into the state pension plan and the state contributes as well.
Expenses (bills) $2100
Expenses (living, gas groceries, fun) $1650
E-fund Savings $250 (current balance $6000)
Short-term savings $325 ( current balance $2275 used for Christmas, property taxes, kindergarten tuition)
Leftover $275 this is new to us b/c we no longer pay a part time sitter an just paid off 0% cc that was due by feb 2013. No plans for this money yet.
Debts:
Mortgage $110,000 29 years left ( have no plans to pay this off early. Long story but purchased from inlaws and financed through them. All documented and have amortization etc.... don't want to think like this but when they pass we are mortgage free.)
HELOC $20,000 fixed rate 5.25% paying extra to have it paid off in 8 yrs vs 10 yrs. payment included in expenses above.
No SL, CC or car debt. 08 and 09 Honda and Toyota that will be driven for several more years.
Current 401k balances 75,000 combined (25k mine 50k DH) current contributions of $675 per month including employees matches. This does not include any pension benefits.
DH will also receive a pension from the state of $2200 (before taxes) at retirement.
So how are we doing?? What should we do with the extra $275 per month that we will now have come Oct? We would like to retire around 60.
Post by makingithappen on Sept 26, 2012 13:57:03 GMT -5
I'd contribute a little more to retirement. You are right at 10% each month and on schedule to slightly behind for the total amount based on age. It sounds like y'all are doing excellent with debt management though! congrats on that I believe recommendations now are closer to 15-20% each month.
What about Roth IRA's? You can put up to $5,000/year each and I think that would be a good addition to what you have. I would probably throw the $275 in this direction and maybe even the e-fund savings (what is your e-fund goal?) as soon as you are comfortable.