Reply to How many of us make under 100K?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Family of 3, HHI is $105K.  We rent in Alexandria, $1k a month in daycare, have students loans, credit card debt - the works.  It's TIGHT but we still save (modestly) for our DS college fund and our retirement accounts.  We don't have much in savings but we feel VERY lucky that we can pay our bills and even have a little fun every now and then.

It's tough but it can be done.

And to the dumba$$ who asked - yes, we are BOTH college graduates with degrees in Business.

[/quote]

I thought conventional wisdom was to pay off credit card debt before saving for college and retirement (or maybe you do retirement first if you have an employer match). [/quote]

Yes -we contribute the bare minimum in order to get the employer match (i.e. FREE money ) Otherwise, we would definitely be throwing everything at the debt.  [/quote]

what is the consensus on borrowing against the 401K?  it is interest you pay yourself, but less than the average returns.[/quote]

General consensus is not to do it but I know people at my agency who have done it (for home repairs, emergencies) and it seems like an OK last alternate if you are years from retirement.  The interest rate on a TSP loan right now is like 1.375 and I think they are fairly easy to get but you do lose out on the compounding interest AND you are repaying with after-tax money (as opposed to initial pre-tax investments).

I don't think it's the best option but at the end of the day, if you need it, you need it.  We almost went this route but decided against it because for now, it's our only safety net.

Such is life.   :roll: [/quote]

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