I hate that I'm responsible...

[Captain Morgan]

If I weren't responsible, I could cash in my retirement savings and my emergency fund, pay off all my debt, and have enough left over for a down payment on a bike. Granted, my interest rate on my debt is probably lower than I'd get on a bike, so I'd just buy the bike outright.

But my point is that I'd still be in debt, not have any emergency fund and not have a retirement fund of any kind. I know what I WANT to do because I really want a bike, but I'm too damn practical so I know what I'm GOING to do, which is keep grinding away at this debt until it's gone, while still building up my retirement and emergency funds. Once all of the debt is gone, I will look at buying a bike. Ugh, responsibility sucks donkey dick! Wait a minute. Scratch that, cause I said I'm responsible. I DON'T suck donkey dick!

[vabarber2]

But being responsible will pay off for you in the long run!! Just hang in there bro! Good Job & Good Luck!!

[NONE_too_SOFT]

yep, and when you look back what are you going to think? obviously your answer will be "im glad i prepared for the future"... and thats not a bad response.


dont beat yourself up over it, your priorities arent wack.

[Mr Lefty]

I hear ya Cap... I try to keep that fund out of my mind... but once a quarter I get a statement... fuck what I could do with 15G's... (decent considering I've only been saving for 6 years)

but naw... no matter how you put it... motorcycles are luxuries and not necessities in my mind... so they're no reason to jeopardize my future...

on getting one of those jobs your looking at though!!!

[Captain Morgan]

Originally Posted by Ebbs15

I hear ya Cap... I try to keep that fund out of my mind... but once a quarter I get a statement... fuck what I could do with 15G's... (decent considering I've only been saving for 6 years)

but naw... no matter how you put it... motorcycles are luxuries and not necessities in my mind... so they're no reason to jeopardize my future...

on getting one of those jobs your looking at though!!!

Well, i have almost 14 between retirement and emergency fund, but just over 11 in debt. Stupid attempt at being an insurance agent and spending everything I had and more, but only earning commission. The difference is you have a bike. I'd say you're in a better position than I am.

[Mr Lefty]

Originally Posted by Captain Morgan

Well, i have almost 14 between retirement and emergency fund, but just over 11 in debt. Stupid attempt at being an insurance agent and spending everything I had and more, but only earning commission. The difference is you have a bike. I'd say you're in a better position than I am.

true... I won't argue with ya there... but you will too.. I'm gonna say with in the next 2 years... and I'm almost always right... cept when I'm wrong

[fatburg]

Don't forget to take out the 20% penalty and taxes...that makes your 14 about 7...suck.

I've done the math several times, I can cash one of my retirement accounts out and pay off everything but my house. Of course if I hold on a little longer, I can open my gym and borrow against my retirement penalty free.

[DLIT]

Originally Posted by Ebbs15

I hear ya Cap... I try to keep that fund out of my mind... but once a quarter I get a statement... fuck what I could do with 15G's... (decent considering I've only been saving for 6 years)

but naw... no matter how you put it... motorcycles are luxuries and not necessities in my mind... so they're no reason to jeopardize my future...

on getting one of those jobs your looking at though!!!

They're a necessity in my mind. I'm banking on winning the lottery for the rest.

[Captain Morgan]

Originally Posted by OneSickPsycho

Roles are reversed for me... My dad and step-mom are planning on living with me three months out of the year and will be payin' me rent. :nana:

Cap, you're pretty smart about money, but I can't help wondering... Have you done the math to see if it would make sense to use that money to pay off your debt, then combine what you are paying onto the debt and what you are contributing to your retirement to rebuild the IRA's? I'd have to imagine you are paying more in interest on your debt than you are making through the IRA's...

Yes. I've considered it, but I have low interest debt. $3K is at 6% until paid off, the rest is at 0% (4K till October, the rest until it's paid off, which means minimum payments forever. ). If I don't get the opportunity for 0% again by October to transfer what's remaining of the 4K, I'll consider using most of the emergency fund to get rid of it cause it will go up to 10%.

I had been earning very close to the 6% on my e-fund, but then the fed stepped in and stopped that by lowering rates. I have recently been considering taking that money out to pay off the 3K, but I got into this debt situation to begin with because I didn't have an emergency fund. Right now, I'm of the mindset that I'd rather pay 3% to have the e-fund in place than get myself in the situation I was in a couple years ago and have been struggling to get out of ever since.

I've considered selling off the investment portion of my Roth account and paying off some of the debt, but now is the time to be investing since the market is in a slow cycle. Granted, everything I had put in during 2007 isn't doing squat, but I can decrease my average cost by investing now, thus making my gains greater when the market finally turns around. As much as I hate to say it, I'd be willing to bet the market gets down to the low 11's before it turns around again. Yeah, it sucks to invest in the 12's if it's going to the 11's, but there is no way to time it, so I just keep putting in a hundred every paycheck (2x per month). Eventually, it will turn around and with a lower average cost, I'll stand to make more in the long run.

But you guys are definitely thinking along the right lines. I'd pay off the debt if the interest rates were higher on it. I will have my e-fund where I want it very soon (3 months expenses), so I'll take the money that's going to that and put it toward some of my debt.

[marko138]

Tapping into the retirement should be an absolute last resort for emergencies. The fact that you don't want to tap into it to buy a bike is both responsible and smart. Fuck that.