question about raise

**ladykemma2** · 08-14-2008, 09:52 AM

i am getting a $165 raise in my biweekly take home pay.

I am planning on using 65 of that to fund underfunded items in my freedom account, specifically annual optometrist new eyeglasses, xmas, and annual dentist /cleaning.

there remains the 100 bucks.

i am on 6 months emergency fund step. should be ready by spring 09

then new car fund should be started.

i earn 50,000 per year before taxes.
for retirement, 15% per year is 600 per month

10% is 400 per month. 100 biweekly right now is going into a 403B. if i take that new raise 100 bucks biweekly, and start a Roth IRA, that will bump my total retirement contributions to 10%. the next year's raise should put me to 15%.

my question is: should i divert all fundage to 6 month EF and then new car fund, or just divert the unseen funds to the retirement.

clear as mud?

**Russ** · 08-14-2008, 10:01 AM

I would build funds. Once built, you can quickly add large amounts to your retirement funds and easily catch them up.

**itlw8** · 08-14-2008, 11:04 AM

how old is your car
how old are you
how much do you have in your retirement account
how long do you plan to work
how much do you have saved for that airconditioner

**ladykemma2** · 08-14-2008, 11:21 AM

Originally Posted by itlw8

how old is your car
how old are you
how much do you have in your retirement account
how long do you plan to work
how much do you have saved for that airconditioner

my car is 2001, 70,000 miles, in great shape
i am 45 years old. i will get a nice teacher pension of 80% of salary
i have about 10,000 in 403B
i plan to work at the teacher job until 65 or 70
i have about 1800 saved for the a/c. the "Home repairs and maintenance" subaccount is getting 300 per month.

ah, i see where you are going. please continue.

**itlw8** · 08-14-2008, 04:32 PM

well it would be nice if I knew what I was talking about but we will let those who know more do that

ME I would start building that car fund so you do not need to do a loan it can always be used for an emergency if needed. you may only have another 3 years at best

I would also plan on the what ifs... what if you choose or can't work that long.. I have seen many teachers burn out and retire much earlier than that though they still sub with the 80 and out they can do that.

**ladykemma2** · 08-15-2008, 08:05 AM

{pre caffeine early morning musings deleted}

still looking for opinions...

**Greebo** · 08-15-2008, 08:47 AM

I'd build the EF to full levels as fast as you can, before anything else.

**ladykemma2** · 08-15-2008, 01:03 PM

thanks everybody! i wanted to give those funds a name before they disappeared into the void.

BTW, i did some retirement calculations last night (AARP). dave ramsey's 15% (600 a month for me) is spot on target for a cushy retirement.

**dancar3** · 08-15-2008, 07:27 PM

I also vote to have that 3 - 6 month emergency fund fully funded with that extra money coming in......you should be able to accomplish that fairly quickly and then move on to the car fund. Btw, congratulations on your raise!!