UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: ishtarastarte Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 310480  
Subject: Re: 401K Date: 5/24/2001 3:08 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
My wife has a 401K thru a previous employer and I am considering taking that money and putting it on my highest balance and pay most of it down. My wife and I are 30 and 31 yoa, respectively. I believe she only has about 4K in the 401K and we owe about 5800.00 on the credit card. I believe with our ages that we have plenty of time save up for our retirement as long as we get these credit cards paid off. We had 13 credit cards and now we are down to three. I guess I am just really looking for some recommendations on my idea or what to do. My wife's new employee is with the local board of education and they have a 403B and a mandatory retirement that she contributes to. We are planning on opening up a Roth IRA within the next six months to start her retirement back up.

I hope this makes since.

Well, it sort of makes sense. But did you consider the tax implications? If she doesn't put the 4K in an IRA, she'll have to pay taxes on it. You'll end up with much less then the 4k to actually put toward your debt, and even that wouldn't pay it off. You're mortgaging your wife's future to pay off debt. I say it just doesn't look like a good idea. It sounds like you've been paying off debt for a while and you're getting tired. I totally understand, but I don't think this is the way to go. Just keep paying them down as you can, you'll be alright soon!


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next


TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Post of the Day:
Macro Economics

Looking at Oil and Gas
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.