The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: What to do now?||Date: 4/24/2006 7:26 PM|
|Author: DeltaOne81||Number: 51373 of 78166|
we only have $6500 in debt.
Step 1: Get rid of it. Every penny of it. As soon as you reasonably can. There is absolutely no reason to ever carry any consumer debt period (note: I understand that people may have illnesses, etc that can cause those situations, so, let me rephrase... there is no reason to ever continue to carry any consumer debt longer than you need to, period).
We have $42k in a PayPal Money Market account earning 4.52% interest/month.
Why so much? You may have a reason, so I won't tell you to reduce that yet, but it seems awful high to me.
But I will say, if you don't have a reason why you picked that number, how much are you paying on your debt? 10%? 15%? Chances are that $6500 of debt is wipping out over $10K, perhaps over $20K of your earnings on your Money Market account.
Since the company always matched in stock 'units' that amount is variable
Well sure, any investment will be variable. But are you saying that a significant portion of your 401K is in company stock? If so, you may want to consider changing that. I get the feeling that's what you're implying.
This is an Internet service and will increase in value/income.
Hopefully, but you don't want to be counting your chickens before they hatch. If I were you, I would pretend this income doesn't exist. And then anything you get is found money that can go straight to savings.
So, for the moment, we (my wife and I) receive $5471/month.
Great. So you should be able to live on less than $5000. Probably easily less than $4000. Heck, you should be