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URL:  http://boards.fool.com/thanks-yes-i-will-cut-back-on-401k-as-soon-as-i-13809035.aspx

Subject:  Re: How did you do it? Date:  11/30/2000  12:39 PM
Author:  AliFool Number:  15437 of 128580

Thanks. Yes, I will cut back on 401K as soon as I get my "matching" portion for 2001 (company matches dollar-for-dollar up to match point). I have already built up something in past 401Ks and current one, so I can feel OK about taking a break in order to save and pay down debt. We can't live ONLY for the tomorrow that's decades away!

I am in the process of dropping my ESPP from 10% to 1%. I know I will feel bad about that, but we can do it later when we truly have more "disposbale" income. Some might say, "Well, why not buy the shares and just sell them on the end-date of the plan for a virtually foolproof 15% discount (less taxes on that 15%)?" I guess the good reason NOT to do it is that during the 6 months of the plan, that money WON'T be available to us. It will be sitting in the stock plan waiting to purchase shares. So... I guess we may as well not do this.

EXCEPT... I just got notice about how to do this, and I'm looking at where I have to click to change the percentage and I don't want to do it! Hmmmmm.... why NOT? Maybe I will have to think about that some more.

We are also going to make sure we have the right number of allowances and enough withholding for tax year 2001. 2000 should be interesting for us as its our first tax year for married filling jointly.

Beyond this... husband is not putting any money into ESPP (it's not available yet). He's putting only 1% or 2% in his 401K "just to feel like he's doing SOMEthing." Everything else is going to that credit card. Next will probably be my car loan.

We also talked last night about what a "realistic" situation is for us. Realistically... we will both be here, working, for awhile. We won't move to where we want to buy a home for awhile. We know we don't want to have kids for a few years... so, we figure we can do OK renting our 1-br place during that time... and focusing on working, knocking down debt, starting to ACTUALLY SAVE that downpayment, etc. In about 3-4 years we will begin to think more seriously about moving, buying a home, and starting a family. We'd like to have a house, but will wait to we can move and have a different quality of life, in addition to a different financial picture.

Thanks for your input and for letting me share.

--AF
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