Over at The Simple Dollar there’s a great discussion on Figuring Out A Debt Strategy After The Home Purchase and I wanted to weigh in on the comments but didn’t know if my comment was too long or what.Â So here it is below.Â Basically there’s discussion on what Trent wants to do now with his debt/money after he moves into their home.
My recommendations are listed here:
- Pay down the education debt normally.Â Feel ok with debt that’s allowing you a better life – education.
- Pay your mortgage normally.Â Did I read that right?Â You want to pay off the mortgage?Â That is a grand goal and can certainly be paid in 15 years.
- Too much in HSBC – 3-6 months total for the both of you or set an amount that the return will make the account grow automagically to your satisfaction.
- Lose the 529 plans for your kids.Â It would be better to have an investment account at a brokerage with both your and your wife’s name on it called the education account.Â If your kids need it then use it for their education.Â If they don’t because of grants, scholarships, etc. then it’s your money or help them start a Roth IRA with it.Â You owe your kids equality of opportunity and not money for all of them to go to college.Â You never know what they’ll want to do when they get there.Â Plus you really need to look at what the 529s do to your financial life when your kids reach that age.Â There’s more than one way to pay for college, there’s only one way to pay for your retirement.
Of course, like Trent says, there’s more Personal than Finance in Personal Finance.Â Â 🙂 Â