Anonymous
Post 12/31/2012 19:01     Subject: Getting a raise, help me plan
Anonymous wrote:
Anonymous wrote:Depending on what rate the car loan is, I wouldn't pay it off if you are looking to get into a house.



Yeah, that's where I'm (the OP) stuck. The car rate is 2.9%. If we pay it off, that's 20k less that we'll have in our house fund....


If you loose your job and need cash, you'd have to sell your cars presumably. Better strategy: build that nest egg. 2.9% is free money.

We are paying ours off this year but only because I'm tired of having them around. Financially it doesn't really make a lot of sense to do so.

After the nest egg, I'd consider paying them off then only for two reasons - a $500 a month car payment might support $20k I'm car loans while $500 a month might support $100k in mortgage, and 2- plus the tax deduction. But if you want "smart money".... The answer is to let it roll at 2.9%, invest the difference and (likely) earn a rate in excess of 2.9%.
Anonymous
Post 12/31/2012 16:09     Subject: Getting a raise, help me plan
Anonymous wrote:Depending on what rate the car loan is, I wouldn't pay it off if you are looking to get into a house.



Yeah, that's where I'm (the OP) stuck. The car rate is 2.9%. If we pay it off, that's 20k less that we'll have in our house fund....
Anonymous
Post 12/27/2012 17:35     Subject: Getting a raise, help me plan
Depending on what rate the car loan is, I wouldn't pay it off if you are looking to get into a house.
Anonymous
Post 12/27/2012 14:04     Subject: Getting a raise, help me plan
Anonymous wrote:
Anonymous wrote:
Step 0: Pay off debt (i.e. car loan)
Step 1. Build a 50k emergency fund
Step 2. Max 401ks
Step 3. Start saving towards home


I agree with this, including step 0.
Anonymous
Post 12/27/2012 13:34     Subject: Re:Getting a raise, help me plan
Pay off the car and start putting away as much as possible for the emergency fund and the house purchase. Between the downpayment, the closing costs, and the inevitable remodeling, you'll need a minimum of $150K put away.
Anonymous
Post 12/25/2012 19:39     Subject: Getting a raise, help me plan
Anonymous wrote:
Step 0: Pay off debt (i.e. car loan)
Step 1. Build a 50k emergency fund
Step 2. Max 401ks
Step 3. Start saving towards home
Anonymous
Post 12/23/2012 14:51     Subject: Getting a raise, help me plan
Step 1. Build a 50k emergency fund
Step 2. Max 401ks
Step 3. Start saving towards home
Anonymous
Post 12/23/2012 14:17     Subject: Getting a raise, help me plan
I would be maxing your retirement funds before contributing any more towards your kids college. Have you done Roth IRAs?
Anonymous
Post 12/23/2012 14:08     Subject: Re:Getting a raise, help me plan
We have 20k emergency fund, but that's also the house fund, so we do need to double it I guess we pay off the car, then do that without worrying about beefing up retirement or college funds?
Anonymous
Post 12/23/2012 11:01     Subject: Getting a raise, help me plan
First, create an emergency fund if you don't have one.

Then, I vote for paying off the car to get rid of debt and free up money for other purposes. No need to pay interest for a depreciating asset if you can avoid it.

Anonymous
Post 12/23/2012 07:16     Subject: Re:Getting a raise, help me plan
Uh, if that were obvous to me, I woudlnt have asked

Seems like paying off the car in the next few years woudl also be important in terms of getting a house? Forgot to include that we'll (fingers crossed) probably get 20k from selling our current house
Anonymous
Post 12/23/2012 06:31     Subject: Getting a raise, help me plan
Uh, obviously you're basically going to put all the extra money into saving for a downpayment for a house, if you're interested in getting a house within the next five years. If I were you that would be where the money would go.
Anonymous
Post 12/23/2012 06:10     Subject: Getting a raise, help me plan
The details aren't all worked out, but I expect about a 25%-35% raise in the next month (from around 90k to 120k). We've been livign very comfortably so far, so I'm hoping to use that extra money wisely. Once I start thinkign of the things I want to do with that money, it doesnt seem to go too far


Here are my goals:

Retirement: At 34, currently have 115k, with 11% salary +5%match each month (DH, also 34, only has about 80k)
College: currently have 28k for two kids under 5
Car: 19k car loan
House: want to get into a 450k-500k house within the next two years, only have 20k saved


Thanks!