tag:blogger.com,1999:blog-4921609404771984660.post4922016312432019590..comments2024-02-14T00:56:27.534-08:00Comments on Homeowner by 30!: Crunching the NumbersJessica Fletcher-Fierrohttp://www.blogger.com/profile/04721145697646712842noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-4921609404771984660.post-30472143992867608532011-11-07T20:28:05.015-08:002011-11-07T20:28:05.015-08:00As far as I know, you can get any contributions ou...As far as I know, you can get any contributions out of your Roth at any time. That is why putting money in the Roth is such a good idea - in an emergency, you can use your contributions without penalty. On the other hand, if you don't contribute to your Roth, the opportunity vanishes - you cannot put in money for past years. Good luck whatever you decide!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921609404771984660.post-7364293831279442822011-11-07T09:30:31.736-08:002011-11-07T09:30:31.736-08:00I love both of your (TeacHer Finance and Homewowne...I love both of your (TeacHer Finance and Homewowner) blogs. I read them both all the time.<br /><br />There are so many personal finance experts out there (Dave Ramsey, Gail Voz Oxlade, Suze Orman, Michelle Singletary, Jean Chatzkey...and the list goes on) with different plans. Regardless of the plan people have to modify it to fit their situations (i.e. loan forgiveness for teachers). <br /><br />My arguement is not that the 7 baby steps are for everyone, but that everyone should run the numbers for any plan they choose if they were to follow it exactly as written. This serves as a great point of reference, when the desire/need to customize comes into play.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921609404771984660.post-58627030342107023482011-11-06T17:05:50.959-08:002011-11-06T17:05:50.959-08:00I second the both awesome comment :)
This is the ...I second the both awesome comment :)<br /><br />This is the beginning of my fifth year, so it's a couple years away. But if I keep making minimums until then, that $5500 will wipe it out. So I'm definitely not going to accelerate payments - it doesn't make sense. <br /><br />I'm starting to think I might just go with a small e-fund - like around $5,000. That would last me for 3 months if I got laid off if I was really careful; then I'll just invest the rest of my excess income in my Roth. <br /><br />This turned into a long response comment...sorry :/TeacHerhttps://www.blogger.com/profile/08641784616684869834noreply@blogger.comtag:blogger.com,1999:blog-4921609404771984660.post-56292766885312657512011-11-06T12:25:53.073-08:002011-11-06T12:25:53.073-08:00@TeacHer: I know, I can see how she might confuse ...@TeacHer: I know, I can see how she might confuse us. Mostly because we're both awesome. When is your seventh year? If its not too far off, yeah I would just wait and then once the $5,500 comes through, get on paying the remainder off. <br /><br />The thing with cash savings is that it gives you options...a Roth is sort of stuck there until retirement or home ownership. Savings can be your New York fund, an emergency fund, a house fund, or anything else you need or want. But I change my mind a lot too, so I feel ya.Jessica Fletcher-Fierrohttps://www.blogger.com/profile/04721145697646712842noreply@blogger.comtag:blogger.com,1999:blog-4921609404771984660.post-61800721453241451892011-11-06T12:04:42.298-08:002011-11-06T12:04:42.298-08:00Lol, just saw your comment and I laughed when I re...Lol, just saw your comment and I laughed when I read If I Were a Wealthy Girl's post this morning! We are kinda similar, though, my frugal sister :)<br /><br />I'm also very back and forth about my goals for the upcoming year, and mostly for the same reasons that you are. It seems stupid to go all out on paying off my student loans when I have $5500 in forgiveness coming at the end of my 7th year. But frankly, I just don't know if ploughing so much money into cash savings is really my best bet either. Why not just put it into the Roth so that I can get some real growth? <br /><br />I just don't know...maybe I'll post about this soon....TeacHerhttps://www.blogger.com/profile/08641784616684869834noreply@blogger.comtag:blogger.com,1999:blog-4921609404771984660.post-36914631438085231532011-11-05T23:00:10.292-07:002011-11-05T23:00:10.292-07:00I like Plan 3, too. I think that Dave's advic...I like Plan 3, too. I think that Dave's advice on not contributing to retirement until you have your debts paid is bogus. I don't think that Dave is good for building long term wealth. He preaches more on a short term basis. Sorry, just not a fan of his. <br /><br />You are doing a great job. Your student loan will be done in no time.ND Chichttp://ndchicscents.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-4921609404771984660.post-29888345437366793562011-11-05T13:13:08.644-07:002011-11-05T13:13:08.644-07:00I like plan 3 as anything that funds the 6 month e...I like plan 3 as anything that funds the 6 month emergency plan the fastest is, in my opinion, the better. It is good to have a cushion. And planning for retirement is also a priority. Very good number crunching!Katy's Cornerhttps://www.blogger.com/profile/06345417397508211576noreply@blogger.com