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Retirement Discussions / Retire Early CampFIRE
|Subject: Re: Late Start but still want to retire early!||Date: 3/24/2004 2:12 PM|
|Author: 2old4bs||Number: 159008 of 795245|
I just increased monthly additions to about $900/month. $1500 in savings and am paying down my credit card balance of $15k by about $1000 per month.
If you are paying high interest rates (over 10%) on those credit cards, you might want to use all available monies to pay them off right now instead of contributing to your 401K. Also, start by paying the most against the highest interest credit card, while paying minimums on the others. When the highest one is paid off, proceed to the second highest interest rate card, etc.
When your cc debt is gone, max out your contribution to your 401K. Here are the annual maximums for those over 50:
In addition to the above, contribute $3000 each year to a Roth, since you appear to qualify from an income perspective (under $110K/year)--not only does the money grow tax-free, but the withdrawals in retirement are also tax-