Merry Christmas / Happy Hanukkah / Happy Kwanza / Seasons Greetings:
Month 32. The last month hasn’t been particularly easy.I’ve been juggling the expenses associated with furnishing a new apartment. I spent approximately $1012 on furniture for the living room (consisting of a sofa, loveseat, ottoman) and that figure includes shipping and tax), $184 on a computer desk + chair and roughly $100 on a coffee table. I still would love to get some accent tables and a headboard but neither of those are essential right now. I’ve never spend this much money in my life and my credit card has been getting a ton of usage these last few weeks. The end is near though.
It looks like I will get an additional $12,000 or so as a result of the refinancing the townhouse out of my name. To me that is a significant amount of money and I’m very cautious about how to best utilize it. Ex says I made out like a bandit. The obvious way would be to apply it directly toward my student loans as I receive each installment. As of this date December 9, 2014 the amount I will receive would represent close to 47% of my student loan. Between my tax return, expected bonuses, settlement money owed to me by the glass company I worked for and “cash flowing it”, I think I can hold true to the original purpose of this blog. To be free of my student loans a few months into the ripe old age of 32. I can see the car paid off by the time I’m 34. Then absolutely no debt, my retirement savings will be well underway.
I started reading Tony Robbins Book – Money Master the Game: 7 Simple Steps to Financial Freedom. It will help me answer the question about what I’m doing with my retirement accounts. Don’t want to get killed in fees. So ready to move out, 6 more days…
As of 12/9/2014:
$5334 in 401k, $4743.89 of that is Vested. – YtD Return of 6.42%
$402.47 in Betterment Roth IRA
635.39 in TDAmeritrade Roth IRA
Total Retirement: 6371.86
Currently, my contributions are increasing by 480 each month. At this rate assuming I lose none of my principal and earn 0% interest I will have over $50k by the time I turn 40. Torn right now between maxing out Roth IRA contributions for 2014 and getting out of debt .When I’m debt free I’ll definitely max out my Roth.
So wait what? I can have over 5x the balance / $32k by just contributing an extra $4462 one time? These calculations don’t factor into the equation risk. The student loan payment will always be there unless I pay it off. The $450-1000 I save in not having a payment each month could easily be used to funnel money into a Roth or other investments. 13 years though of interest accumulating, feeling the weight of Sallie Mae / Navient over my shoulders. It’s almost half of my entire life I’ve owed this organization money… Think I’ve answered my question….