s/o Save for kids' college or pay off student loans?

[Anonymous]

Anonymous wrote:OP, is that 3k in savings your only cash savings or do you also have a separate emergency fund that you're not counting?

As for the comments regarding selling the house and the realtor fees, I think some of those decisions would be based on how much equity/appreciation OP has in his home. If he paid $600k (assuming little to no down payment) for it 10 years ago and it's now worth $800k, there is a chance he could net quite a profit even with the associated fees.

Selling would be an option if OP were moving away from DC. Rent isn't cheap in DC so he's likely to spend just as much or only save a tiny bit by renting. Not to mention he will lose the interest deduction. That coupled with the realtor fees aren't worth moving to pay off the loans.

[Anonymous]

Anonymous wrote:Who are all these people commenting on this thread? Since when does one need "cash savings" in excess of a mortgage? Only in HHI-is-500+-DCUM-land is OP's situation concerning. People are so out of touch.

I made a comment on this, right above you. We have a HHI of 135k/yr and have a cash savings of 3 months living expenses. The financial ignorance on DCUM-land is what is stunning.

[Anonymous]

Anonymous wrote:OP, is that 3k in savings your only cash savings or do you also have a separate emergency fund that you're not counting?

As for the comments regarding selling the house and the realtor fees, I think some of those decisions would be based on how much equity/appreciation OP has in his home. If he paid $600k (assuming little to no down payment) for it 10 years ago and it's now worth $800k, there is a chance he could net quite a profit even with the associated fees.

We have about 25K in a separate savings account, but we do not touch it.

Also, we have roughly 100K in equity in our house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You do both, as well as increase your retirement savings.

Especially if you do not want to have your kids in the same boat as you financially.

Also, they can go to state schools and take a boatload of AP and IB courses and get a full ride to college.

And, you move to a shittier shitshack because that is what you should have afforded in the first place.

What is your HHI? No excuse numbskull!

215K HHI

Ok. Wow! Wow! Wow! We are a 250K HHI. Live in Bumfuckistan with horrible schools - just read the MD school forum. Same age as you. Our mortgage is 1/3 of yours because we live in Bumfuckistan.

So, the thing that is against you is mainly your student debt (and IMHO your mortgage - but I have a Bum********* POV). You do not have an insignificant HHI. You are a high earner and you can get out of this hole - I promise you that. Take the advice of the pps who have mentioned Dave Ramsey.

Community college and then state schools transfer for kids. Do not even waste money applying to out of state school. If they end up doing engineering or comp sci majors at the state school - even better.

Take in a tenant.

Aggressively put money in your retirement. Do not leave ANY MATCH on the table.

Pay off your debt based on the highest interest rates.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, is that 3k in savings your only cash savings or do you also have a separate emergency fund that you're not counting?

As for the comments regarding selling the house and the realtor fees, I think some of those decisions would be based on how much equity/appreciation OP has in his home. If he paid $600k (assuming little to no down payment) for it 10 years ago and it's now worth $800k, there is a chance he could net quite a profit even with the associated fees.

We have about 25K in a separate savings account, but we do not touch it.

Also, we have roughly 100K in equity in our house.

Yikes. How on earth do you make over 200k but only have 100k in equity? You really need to figure out what you've been spending your money on. I suggest opening a checking account and having one person's salary deposited into the account. Have this account used entirely for loan repayment. Don't use the account for anything else or even carry a debit card with you.

Learn to live on one salary.

[Anonymous]

Anonymous wrote:to pay down these loans you HAVE to be able to live off of only one income. That is key.

+ 1. We did just that. We have always lived, saved and planned everything on one salary. Sent kids to public schools, state college etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:to pay down these loans you HAVE to be able to live off of only one income. That is key.

+ 1. We did just that. We have always lived, saved and planned everything on one salary. Sent kids to public schools, state college etc.

Lesson learned to anyone reading this thread - don't buy a home you can't pay the mortgage and other basic living expenses (including car) on one salary. Use the other salary for discretionary and savings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, is that 3k in savings your only cash savings or do you also have a separate emergency fund that you're not counting?

As for the comments regarding selling the house and the realtor fees, I think some of those decisions would be based on how much equity/appreciation OP has in his home. If he paid $600k (assuming little to no down payment) for it 10 years ago and it's now worth $800k, there is a chance he could net quite a profit even with the associated fees.

We have about 25K in a separate savings account, but we do not touch it.

Also, we have roughly 100K in equity in our house.

Yikes. How on earth do you make over 200k but only have 100k in equity? You really need to figure out what you've been spending your money on. I suggest opening a checking account and having one person's salary deposited into the account. Have this account used entirely for loan repayment. Don't use the account for anything else or even carry a debit card with you.

Learn to live on one salary.

As I posted earlier, we were wrong to help out aging parents, as they were what we spent a great deal of money on. Our mistake and in the past.

[Anonymous]

Thanks for all the advice.

[Anonymous]

Sorry Op,
There have been some extremely judgmental jerks posting. I pray that this year will be the year that things turn around for you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, is that 3k in savings your only cash savings or do you also have a separate emergency fund that you're not counting?

As for the comments regarding selling the house and the realtor fees, I think some of those decisions would be based on how much equity/appreciation OP has in his home. If he paid $600k (assuming little to no down payment) for it 10 years ago and it's now worth $800k, there is a chance he could net quite a profit even with the associated fees.

We have about 25K in a separate savings account, but we do not touch it.

Also, we have roughly 100K in equity in our house.

Yikes. How on earth do you make over 200k but only have 100k in equity? You really need to figure out what you've been spending your money on. I suggest opening a checking account and having one person's salary deposited into the account. Have this account used entirely for loan repayment. Don't use the account for anything else or even carry a debit card with you.

Learn to live on one salary.

As I posted earlier, we were wrong to help out aging parents, as they were what we spent a great deal of money on. Our mistake and in the past.

I'm sorry to hear this .

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, is that 3k in savings your only cash savings or do you also have a separate emergency fund that you're not counting?

As for the comments regarding selling the house and the realtor fees, I think some of those decisions would be based on how much equity/appreciation OP has in his home. If he paid $600k (assuming little to no down payment) for it 10 years ago and it's now worth $800k, there is a chance he could net quite a profit even with the associated fees.

We have about 25K in a separate savings account, but we do not touch it.

Also, we have roughly 100K in equity in our house.

Yikes. How on earth do you make over 200k but only have 100k in equity? You really need to figure out what you've been spending your money on. I suggest opening a checking account and having one person's salary deposited into the account. Have this account used entirely for loan repayment. Don't use the account for anything else or even carry a debit card with you.

Learn to live on one salary.

As I posted earlier, we were wrong to help out aging parents, as they were what we spent a great deal of money on. Our mistake and in the past.

You are never wrong to help out the elderly, especially when they're your parents. Anyone who harangues you for that is lost in a way that goes far beyond money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, is that 3k in savings your only cash savings or do you also have a separate emergency fund that you're not counting?

As for the comments regarding selling the house and the realtor fees, I think some of those decisions would be based on how much equity/appreciation OP has in his home. If he paid $600k (assuming little to no down payment) for it 10 years ago and it's now worth $800k, there is a chance he could net quite a profit even with the associated fees.

We have about 25K in a separate savings account, but we do not touch it.

Also, we have roughly 100K in equity in our house.

Yikes. How on earth do you make over 200k but only have 100k in equity? You really need to figure out what you've been spending your money on. I suggest opening a checking account and having one person's salary deposited into the account. Have this account used entirely for loan repayment. Don't use the account for anything else or even carry a debit card with you.

Learn to live on one salary.

As I posted earlier, we were wrong to help out aging parents, as they were what we spent a great deal of money on. Our mistake and in the past.

You are never wrong to help out the elderly, especially when they're your parents. Anyone who harangues you for that is lost in a way that goes far beyond money.

It's wrong if you sacrifice the financial wellbeing of your own family, especially your children.

[Anonymous]

You're not in bad shape. 550K in retirement plus a pension and SS means you're probably going to be fine in retirement. How many years are left on your home? I wouldn't sell unless you were planning to move to a low cost of living area in retirement and buy a home in cash. Committing to lifelong rental payments in retirement is not a good move.

It sucks but no more 529 payments. You both need to save to the matching point for retirement, but you need to snowball the student loan debt. I'd also look into whether your particular loans qualify for debt forgiveness.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Who are all these people commenting on this thread? Since when does one need "cash savings" in excess of a mortgage? Only in HHI-is-500+-DCUM-land is OP's situation concerning. People are so out of touch.

I made a comment on this, right above you. We have a HHI of 135k/yr and have a cash savings of 3 months living expenses. The financial ignorance on DCUM-land is what is stunning.

I think they meant cash savings in excess of the mortgage payment.