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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75799  
Subject: Re: need help with retirement investing and debt Date: 1/23/2014 5:46 PM
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IMHO, order of importance…

…pay off debt. Either in lump sum or in 12 monthly installments (soon to be 11) to get it paid off before 2015. So just under $2k/month. Having no debt offers one a great amount of freedom, least of all the ability to take advantage of an opportunity when it appears.

…if you have money left after paying off debt, consider building up an emergency fund. Most suggest 6 months of living expenses. Why? That is usually when long term disability insurance kicks in. Plus, if you were to become unemployed next week, it gives you some time to make good decisions instead of panicked decisions. Again, maybe set aside $X/month until you've reached your target over the next year.

…with the above taken care of, then do up to the company match. That 6% is free money.

…I agree with another poster, until you get more "educated", stick it in an S&P 500 index fund. Or consider one of these Lazy Portfolios

http://assetbuilder.com/lazy_portfolios/

…last piece of advice, everyone thinks they can tolerate volatility until they experience it. What would your reaction be if you woke up tomorrow and your portfolio was cut by 30% or more. Remember, you don't have to hit home runs, a bunch of singles and doubles will still get you in the Hall of Fame (or retirement).

JLC
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