Hey Jeremy! Thanks for all your content! We have about 60k in debt included cars, student loans and cc’s. Our main focus is to knock out the CC debt first as of course it’s costing us much more in interest per month. We make about 190k total at the moment and have a pretty aggressive plan to get out of it asap. Putting at least 2.5k per month towards it. Our monthly expenses are pretty high but was wondering if it makes sense to put a little a month in to index funds at all. I also have about 12k in a 401k that I think i need to move. It’s sitting in a fidelity account from my old company. My new company also uses fidelity but doesn’t match. Do you suggest I move it to the new account but don’t contribute? I think I also need to switch out my investments on it to a target date index fund. Thoughts?? A little bit of a messy question but some guidance would certainly help!
Hey @erichroman!
To answer a few of your questions:
- I wouldn’t invest any new money at all at the moment. Use that big salary and crush that debt as fast as possible with a singular, white hot focus. When you have no debt and no debt payments, THEN you can start investing big, massive, chunky payments and build some massive wealth. Pay off the debt so you’re not suck in the debt trap the rest of your life. Here’s a post that walks through the phases of investing: How to prioritize your money (The phases of investing) – Personal Finance Club
- I would probably roll over your old 401k to either an IRA or your new 401k. I generally suggest an IRA except that you may want to do a backdoor Roth IRA in the future and having money in a Rollover IRA can complicate that situation. Check this article on why I like rolling over old 401ks: Four reasons to rollover your old 401(k)s – Personal Finance Club
- If you do rollover your old 401k to an IRA (or your new 401k), yeah, I’d take a look at the investments and make sure they’re in low fee index funds!