Comments on: Should You Stop Saving for Retirement to Pay Off Debt?

By: Brian

Brian — Mon, 18 Apr 2011 02:33:30 +0000

Paying off debt and retirement are equally important. I would not sacrifice one for the other. 50% to debt and 50% to retirement imo..

By: Keep My IP » What is Debt to Income Ratio?

Keep My IP » What is Debt to Income Ratio? — Thu, 16 Sep 2010 12:36:50 +0000

[...] If you feel that your DTI is too high, you can do one of two things: increase your income or pay down debt. A decrease in a consumer’s DTI is a good way to enhance credit history, thereby making it easier [...]

By: Steve

Steve — Fri, 19 Mar 2010 00:40:31 +0000

That is very nice, but no one is ever going to get out of credit card debt by paying the minimum payment, you laid out a 5 year plan, assuming no new debt is incurred.

The Dave Ramsey plan would have that paid off in 1 to 2 years, then the math looks very different.

Besides, if you could do math, you wouldn’t have credit card debt.

By: etrade

etrade — Wed, 02 Sep 2009 13:09:45 +0000

My husband and I had been working on a good company for years. Good thing we have some money to pay for our debt while saving for our retirement as well.

By: reinkefj

reinkefj — Thu, 14 May 2009 15:48:37 +0000

Disclaimer, I worked on Wall Street but I am not an investment adviser. Nor do I play one on TV. When asked for investment advice, I give people the sure doubling formula, “fold it and put it in your pocket”!

One caveat on the 401k match. Almost BEFORE you get into the discussion. Remember Enron! What are the investment options after you take that match? If it’s a bunch of choices like S&P500, bonds, or other mutual funds, that’s OK. (You may find that there are other warts but that’s a different discussion. You can suffer a lot of warts with a good match.) If you are restricted to the company stock like Enron did, then that is a giant RED flag for ALL participants. (ENRON also required one to put all your retirement money in their 401k to participate. And, ENRON had horrendous withdrawal policies that went on even after you left the company.)

So, taking the 401K AT ALL should be premised on whether or not it is a GOOD 401k or a BAD Enron like one. (In chatting with family and friends, there are more Enron-like ones out there than you would suspect.)

Just my not so humble opinion.
fjohn

By: SavingDiva

SavingDiva — Thu, 14 May 2009 13:34:17 +0000

I paid off my debt while saving for retirement. My former employer offered an amazing match, so I took full advantage of it while I was working…when my debt was paid off I increased my retirement savings.