Comments on: Should you Invest or Save for Retirement While in Debt? http://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/ Personal Finance for Geeks from the Debt Snowball to Homemade Air Conditioners Sun, 05 Feb 2012 16:55:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: This Week in Personal Finance - January 15, 2010 | Redeeming Richeshttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-11686 This Week in Personal Finance - January 15, 2010 | Redeeming Riches Sat, 27 Mar 2010 16:59:52 +0000 http://www.fiscalgeek.com/?p=1508#comment-11686 [...] Paul over at Fiscal Geek asks a questions we’ve all asked at some point in our lives, “Should You Save For Retirement While in Debt?” [...]

[...] Paul over at Fiscal Geek asks a questions we’ve all asked at some point in our lives, “Should You Save For Retirement While in Debt?” [...]

]]> By: How to Start Investing for Retirementhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-10695 How to Start Investing for Retirement Tue, 16 Mar 2010 03:54:26 +0000 http://www.fiscalgeek.com/?p=1508#comment-10695 [...] I’m assuming you have your unwanted debt cleared out and have a decent emergency savings built up. If you don’t read more on this topic here: Should You Invest or Save for Retirement While in Debt? [...]

[...] I’m assuming you have your unwanted debt cleared out and have a decent emergency savings built up. If you don’t read more on this topic here: Should You Invest or Save for Retirement While in Debt? [...]

]]> By: Best of the Rest: Guest Post Editionhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4420 Best of the Rest: Guest Post Edition Sun, 17 Jan 2010 14:47:47 +0000 http://www.fiscalgeek.com/?p=1508#comment-4420 [...] Geek asks: Should you Invest or Save for Retirement While in Debt? It’s an interesting question and he provides a way to earn a guaranteed 19% return on your [...]

[...] Geek asks: Should you Invest or Save for Retirement While in Debt? It’s an interesting question and he provides a way to earn a guaranteed 19% return on your [...]

]]> By: paulhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4321 paul Fri, 15 Jan 2010 21:06:35 +0000 http://www.fiscalgeek.com/?p=1508#comment-4321 Thanks Joe I really appreciate it. Thanks Joe I really appreciate it.

]]> By: JoeTaxpayerhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4318 JoeTaxpayer Fri, 15 Jan 2010 20:56:47 +0000 http://www.fiscalgeek.com/?p=1508#comment-4318 Too often, as an engineer and a numbers guy, I am blinded to other issues. The PF bloggers I run into here and elsewhere have opened my eyes to other views and ways of approaching issues. While my initial response may start from the same thought process, I appreciate what I've learned from all of you. Just saying. Joe Too often, as an engineer and a numbers guy, I am blinded to other issues. The PF bloggers I run into here and elsewhere have opened my eyes to other views and ways of approaching issues. While my initial response may start from the same thought process, I appreciate what I’ve learned from all of you. Just saying.
Joe

]]> By: Joe Plemonhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4317 Joe Plemon Fri, 15 Jan 2010 20:44:09 +0000 http://www.fiscalgeek.com/?p=1508#comment-4317 I'm with the radically focused approach, regardless of age. The watered down approach could cause one to lose focus and certainly guarantees the "older" person that he will be in debt that much longer. If I know I need to get rid of debt before I can invest, I will rightfully be that much more motivated. Like Peter said, it may take an extra job for a couple of years, but after the debt is gone, all that had been going for the debt can now be used to pay yourself (emergency fund and retirement). I’m with the radically focused approach, regardless of age. The watered down approach could cause one to lose focus and certainly guarantees the “older” person that he will be in debt that much longer. If I know I need to get rid of debt before I can invest, I will rightfully be that much more motivated. Like Peter said, it may take an extra job for a couple of years, but after the debt is gone, all that had been going for the debt can now be used to pay yourself (emergency fund and retirement).

]]> By: LALhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4309 LAL Fri, 15 Jan 2010 18:41:50 +0000 http://www.fiscalgeek.com/?p=1508#comment-4309 Depends. Honestly if you are out in 1 year then cool, but if it takes 4-5 years? I mean to pay off $63k in 11 months is average $5-6k/month. Very impressive. But put it into this perspective. That's more than the average american family makes annually, $50k/year. And that's after tax dollars. Thus, the shovel is huge to allow for an extra $5k/month. I don't have $5k/month even without retirement savings to pay off debt. Thus I think people need to examine their own budgets and timelines. It's easy to tell people to not save for retirement if you can get out of debt in less than one year. I think it's a lot harder if you make $50k and have $50k in debt and it'll take longer to pay off. Either way works out. Depends. Honestly if you are out in 1 year then cool, but if it takes 4-5 years?

I mean to pay off $63k in 11 months is average $5-6k/month. Very impressive. But put it into this perspective.

That’s more than the average american family makes annually, $50k/year. And that’s after tax dollars. Thus, the shovel is huge to allow for an extra $5k/month. I don’t have $5k/month even without retirement savings to pay off debt.

Thus I think people need to examine their own budgets and timelines. It’s easy to tell people to not save for retirement if you can get out of debt in less than one year. I think it’s a lot harder if you make $50k and have $50k in debt and it’ll take longer to pay off.

Either way works out.

]]> By: paulhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4265 paul Fri, 15 Jan 2010 05:13:34 +0000 http://www.fiscalgeek.com/?p=1508#comment-4265 I'm with Matt, it's what I've done for the time being and it's what has allowed us to aggressively get out of our 63,000 dollar hole. I’m with Matt, it’s what I’ve done for the time being and it’s what has allowed us to aggressively get out of our 63,000 dollar hole.

]]> By: Matt Jabshttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4264 Matt Jabs Fri, 15 Jan 2010 05:00:11 +0000 http://www.fiscalgeek.com/?p=1508#comment-4264 Yeah... that is another thing I struggle with and go back & forth on. But at the end of the day I'm choosing to leave it on the table in lieu of guaranteed ROI from debt reduction. .-= Matt Jabs´s last blog ..<a href="http://www.debtfreeadventure.com/giveaways-personal-finance-january-2010/" rel="nofollow">Current Giveaways on DFA "“ January 2010</a> =-. Yeah… that is another thing I struggle with and go back & forth on. But at the end of the day I’m choosing to leave it on the table in lieu of guaranteed ROI from debt reduction.
.-= Matt Jabs´s last blog ..Current Giveaways on DFA ““ January 2010 =-.

]]> By: JoeTaxpayerhttp://www.fiscalgeek.com/2010/01/should-you-invest-or-save-for-retirement-while-in-debt/#comment-4262 JoeTaxpayer Fri, 15 Jan 2010 04:50:28 +0000 http://www.fiscalgeek.com/?p=1508#comment-4262 One thing I'd add to this discussion is a proposed exception. One should not walk away from an employer match on 401(k) money, especially the dollar for dollar match some offer on first X% of one's salary. One thing I’d add to this discussion is a proposed exception. One should not walk away from an employer match on 401(k) money, especially the dollar for dollar match some offer on first X% of one’s salary.

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