UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: MurrayS Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76395  
Subject: Re: Help with 403b/457b and Roth IRA Date: 2/26/2004 12:51 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
One thing not mentioned here is a home equity loan or line of credit. You should be able to reduce the rate on the 9% loan plus take a deduction on the interest if you itemize. I estimate that you currently pay $52 per month ($7000 x 9% / 12) per month on this loan so you should be able to afford some closing costs. Depending on the rate, you may want to roll in the 4% balance.

I'm inclined to keep funding the 401k & 403b accounts. You mention putting $26k into these accounts which, at 30% tax rate, saves you $7800 per year. Take the tax savings alone and you have the first CC paid off in one year.

Another way to look at it: if you can pay $1000 off per month, you will have the $7000 balance paid off in around 8 months and pay ~$200 in interest which, to me, isn't a huge deal either way. Whatever decision you make isn't likely to increase or decrease that number by a large amount, even with a 20% swing in the market either way. I would stay on your current plan.

Bottom line, you have good instincts and you seem to have control of the situation. For that, you should be commended.

-murray
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement