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[quote=Anonymous][quote=Anonymous]With a low fixed rate, I would not prioritize paying down your loans, though you certainly want them paid off by the time you reach retirement age. What you are paying now is fine, I would not increase it.

I would not prioritize saving for your daughter's college at this time. Your net worth is very low, and your future income stream is not 100% assured (suppose you get sick, for instance). I would build up your own assets/reduce liabilities first before putting money in an account that can only easily be used for you child's education. Put in a token amount - maybe match the father's contribution. Then you can increase your contribution in 10 years or whenever, when you are in better financial shape.

I think you are right to max out 401K given that you have started retirement savings late.

For the rest, I would save aggressively for a large downpayment on a house. It will be critical that you don't spend too much - your loans are already the size of a fair mortgage. Consider an apartment or a very small house for the two of you. I would use a combination of savings and mutual funds - on the latter I agree 8 percent is optimistic. Stock valuations are currently very high - make sure you get a balanced portfolio of low fee funds. I support the Vanguard suggestion.

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Oops.  I'm the 13:21 poster.  I probably should have just said "+1" and saved myself the trouble.[/quote]

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