Which is better?

[drcraig]

In your case Smoke paying off the credit cards gives a two fold benefit. It diminishes the effects of compounding, but more importantly it helps remove more effects of the negativity surrounding the issue, which is most important for your family.

 

[FlyingLow]

Thanks guys for all the help.

 

[ntw0rk]

Thanks for all the info. I know a lot lean towards pay the debt first. But I have also heard pay yourself first. This is why is a hard decision to make.

Realistically, paying down debt IS paying yourself!

Read the book, you'll get a lot out of it!!

 

[FlyingLow]

Realistically, paying down debt IS paying yourself!

Read the book, you'll get a lot out of it!!

Well I think I might be asking the wrong question. I'm not talking about taking money out of savings. I'm saying I'm paying more then the minimum due on a credit card. Now I have still have extra cash each month. So I can either put it into the credit card to pay it down or put it into an IRA to build my retirement or do a little of both. I think there are just to many variables on this. I would have to lay out my whole finical status to really get a good answer. I was just looking for more of a general rule of thumb. But I will take a look at the book. I'm going to go by the library today anyway.

 

[203Cree]

Well I think I might be asking the wrong question. I'm not talking about taking money out of savings. I'm saying I'm paying more then the minimum due on a credit card. Now I have still have extra cash each month. So I can either put it into the credit card to pay it down or put it into an IRA to build my retirement or do a little of both. I think there are just to many variables on this. I would have to lay out my whole finical status to really get a good answer. I was just looking for more of a general rule of thumb. But I will take a look at the book. I'm going to go by the library today anyway.

Pay a little to both. Or pay off the cards now and dump all that to retirement. You'd really need to sit down and do the math on which direction would put you the furthest ahead in the long run. It would stand to reason that paying off the debt first would, but maybe not.

And if you're not kicking at LEAST 10 percent to the TSP, you should smack yourself. It's taken before taxes. Less money on your paycheck, less money paid out in taxes, more money in your pocket. I worked mine out so that my TSP contributions actually drop me down a tax bracket. By the time everything is said and done, I end up with almost the same amount of money in my hand and more in the bank. Look into it. That's all I'm saying. And when the contribution matching comes along for you, bump it to 15. That'd be an even 20 in a fund that see's on avg. 6% a year if you leave it in the G fund, more if you play the market.

 

[FlyingLow]

I have the S fund and it has been kicking ass!! The last 3 years it has done:
42% 2003
18% 2004
10% 2005

 

[203Cree]

Yeah, I've looked into the S fund, but I think I'm gonna dump all mine into the L fund. Less work, lol.

 

[FlyingLow]

Yeah, I've looked into the S fund, but I think I'm gonna dump all mine into the L fund. Less work, lol.

Who wants an L fund? I mean honestly.

 

[Rockin Ronnie]

Dude! I just dropped a perfectly good beer!! Where the hell did you come up with all that Ronnie??:dontknow:

Umm, Gee well I made $146,780.00 the first year and $465,000 last year and I should make $678,000 this year. I think I figured it out!!!!!!! But heh if you guys can teach me how to make more on investments I will be all ears!!!!!! If not say heh this guy is simply trying to help out a friend!!!!!

 

[FlyingLow]

Umm, Gee well I made $146,780.00 the first year and $465,000 last year and I should make $678,000 this year. I think I figured it out!!!!!!! But heh if you guys can teach me how to make more on investments I will be all ears!!!!!! If not say heh this guy is simply trying to help out a friend!!!!!

First off, HOLY SHIT!!! I feel good with the coke machine gives me too much change back!!!

Second while those returns are great, what amount of initial got you there? (You don't have to answer as I'm not trying to put your finance out there, merely stating a point.) But I will give you a call about the PM's we traded today.

 

[Rockin Ronnie]

I'm ex military(Air Traffic Control) honorable dishcharged 1986. I believe in helping my brothern whenever I can. Now please give me a buzz and let's chat.
Ronnie

 

[Stanimal]

pay the cards off

 

[Manic]

Umm, Gee well I made $146,780.00 the first year and $465,000 last year and I should make $678,000 this year. I think I figured it out!!!!!!! But heh if you guys can teach me how to make more on investments I will be all ears!!!!!! If not say heh this guy is simply trying to help out a friend!!!!!

Care to have a seminar?

 

[FlyingLow]

I'm ex military(Air Traffic Control) honorable dishcharged 1986. I believe in helping my brothern whenever I can. Now please give me a buzz and let's chat.
Ronnie

Will do Ronnie. Today is my first day back to work so I might not get a chance to call until this weekend. But let me ask you this air traffic control question. When I'm on the radios I always call my controllers sir and m'am. But some of the other pilots won't cause they know the controllers are lower ranks. Do you guys ever notice that or even care?

Smoke