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Does it matter? Re: Paying off Debt/ Paying into Retirement
Going debt free in 2013.
Trying to make a plan toward paying off CC debt AND maxing out a newly opened Roth IRA...
In December:
Consolidated my ~$6500 debt onto a new Chase Slate, so 0% interest for 15 months.
Opened a Vanguard Target 2045 account with $1000 (+ $80/week). Won't have funds to max it out for 2012 but plan to for 2013.
I own a home and live alone on ~50k so I'd prefer to keep funds dedicated to debt/retirement at or around $1000/month.
My initial plan was to pay down the CC debt AND contribute to my Roth IRA at the same time. I get paid weekly, so that is how my auto-withdrawls are coming out ($255/weekly):
Starting in January:
$175/week toward CC Debt, paid off in 37 weeks (2nd week of Sept).
$80/week toward Retirement, ~$3k toward retirement in 37 weeks when CC is paid off.
September: Once the CC is paid off I could switch to $200/week toward retirement and put the extra $80/week in savings.
I am VERY eager to get out of Credit Card debt. So my other option is to:
Pay the full $255/week toward CC debt, paid off in 25 weeks (Mid-June)
That gives me the remaining 27 weeks of 2013 to pay toward max retirement and add to savings.
Anyone have a plan that makes more sense? It's really important for me to get out of debt (short-term goal) but I know I also need to start working on retirement (long-term goal).
Will paying into retirement the first 6 months of the year really affect things long-term?
Thanks in advance!
Trying to make a plan toward paying off CC debt AND maxing out a newly opened Roth IRA...
In December:
Consolidated my ~$6500 debt onto a new Chase Slate, so 0% interest for 15 months.
Opened a Vanguard Target 2045 account with $1000 (+ $80/week). Won't have funds to max it out for 2012 but plan to for 2013.
I own a home and live alone on ~50k so I'd prefer to keep funds dedicated to debt/retirement at or around $1000/month.
My initial plan was to pay down the CC debt AND contribute to my Roth IRA at the same time. I get paid weekly, so that is how my auto-withdrawls are coming out ($255/weekly):
Starting in January:
$175/week toward CC Debt, paid off in 37 weeks (2nd week of Sept).
$80/week toward Retirement, ~$3k toward retirement in 37 weeks when CC is paid off.
September: Once the CC is paid off I could switch to $200/week toward retirement and put the extra $80/week in savings.
I am VERY eager to get out of Credit Card debt. So my other option is to:
Pay the full $255/week toward CC debt, paid off in 25 weeks (Mid-June)
That gives me the remaining 27 weeks of 2013 to pay toward max retirement and add to savings.
Anyone have a plan that makes more sense? It's really important for me to get out of debt (short-term goal) but I know I also need to start working on retirement (long-term goal).
Will paying into retirement the first 6 months of the year really affect things long-term?
Thanks in advance!
slickdeals:
