Anonymous
Post 01/09/2017 14:24     Subject: s/o Save for kids' college or pay off student loans?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Here's our rough budget -- I don't have it here at work, but they are rough numbers.

car loans 575
credit cards 350
529s 400
savings 250
gas 300
groceries 1000
medical OOP (Rxs and therapy) 450
mortgage 3350
student loans 1000
utilities 300
internet 250

We have health/dental insurance from FEHB and vision through my wife's employer.


(She has about $300K in her employer's 401k and a pension plan.)


Why is internet $250? Does that include cable / phones?


verizon FIOS -- wife works from home and we have to pay for our own internet


That still doesn't make sense. The only plans I can even find on the fios website that are that high are business plans where you need to have lots of people accessing the internet simultaneously. I work from home several days a week and have been just fine with my regular old internet service.

Given the high out of pocket medical costs, I hope you do a health care FSA. I would also be seriously looking at different plan coverages to see if there's one that's a better fit for the Rx or offers some reimbursement for out-of network therapy.
Anonymous
Post 01/09/2017 14:11     Subject: Re:s/o Save for kids' college or pay off student loans?
No, don't give up the match.

Pay off your credit cards
Pay off your car loan
Pay off your student loans

Your kids can go to public school and take out their own loans.
Anonymous
Post 01/09/2017 14:09     Subject: s/o Save for kids' college or pay off student loans?
Anonymous wrote:Thanks, all.

We have about 5K in credit card debt.

Should we stop the retirement savings? (She gets a 5% match from her employer.)


You are in your 50's and still have credit card debt??? You are a financial disaster.

I thought you drove old cars. Why do you have a car payment?

You are obviously living above your means. Tell your teenage children to get jobs.
Anonymous
Post 01/09/2017 14:00     Subject: s/o Save for kids' college or pay off student loans?
Anonymous wrote:Just tell your kids they are screwed.


The kids will be fine. Plenty of people go to college with little to no help from parents (most people I know, actually). And hopefully OP's children will learn a lesson form this and choose an affordable school option.
Anonymous
Post 01/09/2017 13:55     Subject: s/o Save for kids' college or pay off student loans?
I know it's hard not to fund the 529's but you need to throw everything you can at your debt. Once you start to get things paid off, it is immensely satisfying to watch your balances go down.

You may want to make some deep spending cuts, at least for a few months, in order to reset your priorities. It's not a bad thing to feel a painful pinch; it can help us learn to make better choices going forward.

Been there, done that - paid off $35,000 of consumer debt in my 30's on a much lower salary and will never go back. Good luck. You can do it.
Anonymous
Post 01/09/2017 13:16     Subject: s/o Save for kids' college or pay off student loans?
Will check out Dave Ramsey and Michelle Singletary -- thank you!
Anonymous
Post 01/09/2017 13:15     Subject: s/o Save for kids' college or pay off student loans?
Anonymous wrote:Thanks, all.

We have about 5K in credit card debt.

Should we stop the retirement savings? (She gets a 5% match from her employer.)


I'd be hesitant to lose the match, since it's basically free money. For now, I'd save up to the match, and spend the next few months getting a handle on how you spend your money and where you can cut back. Get into Dave Ramsey - read his books and check out the podcasts. Get motivated - I think once you get a handle on things you'll be able to make good changes.
Anonymous
Post 01/09/2017 13:14     Subject: s/o Save for kids' college or pay off student loans?
Anonymous wrote:Thanks, all.

We have about 5K in credit card debt.

Should we stop the retirement savings? (She gets a 5% match from her employer.)


No. Always keep the match- that's free money! Stop the 529 savings and stop all other forms of savings.

Pay off credit card
Pay off car
Pay off student loans
Save for retirement


Save for kid's colleges
Anonymous
Post 01/09/2017 13:14     Subject: s/o Save for kids' college or pay off student loans?
You should get the match.

Good luck, make this the year you turn this around.
Anonymous
Post 01/09/2017 13:11     Subject: s/o Save for kids' college or pay off student loans?
Thanks, all.

We have about 5K in credit card debt.

Should we stop the retirement savings? (She gets a 5% match from her employer.)
Anonymous
Post 01/09/2017 13:03     Subject: s/o Save for kids' college or pay off student loans?
Anonymous wrote:
Anonymous wrote:At first glance, your car loans seem high for your situation. How close are you to getting those paid off?

How much money do you have in savings currently? in 529's? In retirement accounts?


car loans will be paid off in 2017

Have 3K in savings, 10K in 529s, and my 401K is about 250K


So total retirement is currently about 550k, plus you'll have wife's pension? Could be better, but it's not the worst place to be. If car loans will be paid this year, I'd plan on keeping those things until the wheels fall off, and throw that money towards your debt. How much credit card debt do you have?
Anonymous
Post 01/09/2017 13:03     Subject: s/o Save for kids' college or pay off student loans?
Anonymous wrote:You claim you live in a shitshack, but with that mortgage, it's tough. Honestly, I'd sell your place and rent something for awhile. After all, your kids are moving out within a couple of years anyway. Throw every cent of anything you make from the sale of the house at your student loan debt. Then trim EVERYTHING from that budget and start chunking it at your debt.

Dave Ramsey would tell you to stop all savings -- of all types-- and throw everything at your cc debt until that's gone, then attack your car debt (or sell your nice cars and buy beaters), then go for your student loan debt.

It's going to take you years to pay all of this off and if your wife already has $300k in her 401k, you may just need to let that sit and churn while you get rid of this crazy noose around your necks.


Especially if you have $250k in your 401k. You all need to focus on getting rid of the debt because all of that retirement will mean nothing until you get rid of that student loan debt.
Anonymous
Post 01/09/2017 13:02     Subject: s/o Save for kids' college or pay off student loans?
I can see how OP ended up where he ended up...
Anonymous
Post 01/09/2017 13:02     Subject: s/o Save for kids' college or pay off student loans?
Honestly you must have gone to nice colleges. Why did you choose to go for jobs that were a fed and a non profit? You took low paying jobs for the nice education you probably had. I really think you need to go to the private sector for a decade or so and make money.
Anonymous
Post 01/09/2017 13:02     Subject: s/o Save for kids' college or pay off student loans?
A few things that immediately stand out-- food

Start shopping at Aldi. It's actually fine and a great cost saver. 1000 is too much, get it to $600 tops. You can do that. Let your family go out to dinner once a month for pizza or something
Why is internet $250? We have cox-- internet and basic tv is less than $80/month. We also get Netflix

Where do you live that your house is a shitshack? Still a high mortgage. Can you move?

How much longer on the car loans? I thought your cars were 12 years old