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How do you manage multiple savings goals at a time?

July 24th, 2007 at 05:06 pm


I'm having an issue here deciding on how to approach multiple goals.

I have $13,000 at 0% credit card debt for life of balance. I have this money in a money market fund paying 5.4%. The minimum payment on this is $200.00

I have contributed 10% of DH's salary into the 401(k) and I regularly contribute to my IRA (usually only about $2000. Total IRA value $99,000

I am prepaying tuition (two years at commuity college) for DD9 and DD8 ($226 a month for another 4 years 9 months). The other college money in their names is this: DD9 $7K, DD8 $7K, DS4 $7K, DS2 $1K.

Our mortgage is $290K on a $510K value and we own a rental property paid off for $330K. We do make an additional payment per year based on pay every two weeks (13 payments a year).

Where would you put additional money gien this situation: Retirement, College, Mortgage?

Posted in Uncategorized | 7 Comments »

7 Responses to “How do you manage multiple savings goals at a time?”

  1. disneysteve Says:
    July 24th, 2007 at 05:15 pm 1185297353
    1185297353

    I'd want to see you maxing your Roth and your husband's Roth before you worried about college savings. There are all types of financial aid for college but there is no aid for retirement. That should always come first.

  2. Ima saver Says:
    July 24th, 2007 at 05:34 pm 1185298463
    1185298463

    I agree with disney steve!! Retirement first!

  3. yummy64 Says:
    July 24th, 2007 at 08:44 pm 1185309842
    1185309842

    Retirement first - but I would also work to getting the debt paid off - cause it is so nice not owing money more than anything else. The peace of mind is worth it for me.

  4. Aleta Says:
    July 24th, 2007 at 11:01 pm 1185318064
    1185318064

    Max out your retirement first and you'll be way ahead.

  5. fern Says:
    July 25th, 2007 at 07:39 pm 1185392371
    1185392371

    Putting more into a 401k gives you 2 big benefits:

    1. It reduces your taxable income.
    2. The money invested there grows tax-deferred.

    What could be better?

  6. PauletteGoddard Says:
    July 25th, 2007 at 10:05 pm 1185401113
    1185401113

    Retirement, then Mortgage, then College.

  7. baselle Says:
    July 26th, 2007 at 04:23 am 1185423790
    1185423790

    I manage multiple savings goals by taking advantage of savings vehicles that do multiple things.

    The 401K encourages you to save for retirement, but it also lowers your taxes directly and off the top, which helps you save more. The mortgage deduction works okay, but not as well as the 401K because you have to itemize and only the interest is deductable.

    If you are looking for bulking up your emergency fund and retirement, you can't beat a Roth. You save for retirement, but for serious emergencies, since what you put in is after tax you can take out what you put in without penalty. (The earnings of the money can't be taken out without penalty)

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