I Am Debt Free!!!!!

[NatG11]

I just paid off my student loans. I have been working the past 5 years and 11 months on paying off 2 car loans and student loans for a total of $134,000 on a single income.

Now that I am debt free, I want to focus on retirement. I am 43 single with no kids and no retirement beside social security. I plan on putting the max into a ROTH IRA from now on. I am concern with not having enough for retirement.

Any advice please.

Thank U

[snafu]

Nat, welcome to SA. Congratulations on getting two car loans and major student loan Paid in Full. That's a huge milestone. Before making suggestions about retirement there is more information needed. 1st, does your employer offer any kind of contribution match? What percentage of income did you plan to contribute? Do you have an emergency fund?

It really helps to have more details like your general expenses, and some idea of your investment risk tolerance.

[NatG11]

Hello

I am self employed with my full time job (this may continue at least one more year). I looked into my part time job. They do not have a 401k for part time workers.

I only have 1000 in an emergency fund right now. My average income is around 6000 a month (feel very blessed). I try to put back a little for the summer months because that income goes down by 60%.

I am single with no kids. I rent right now and that goes up each year but do not want to commit to a mortgage because I may not be in Texas in the next 3 years. My average expenses needed for household living, insurance (medical and auto) food, gas and entertainment averages between 2800 and 3000.

[snafu]

Nat, I'm concluding that you're very self disciplined and suggest that you could set up and manage a SEP-IRA via Vanguard or low cost provider of choice in a pre tax Dollar Cost Average program [DCA] . [We often suggest Vanguard due to it's low cost and excellent management]. You will need to start with an initial contribution and I believe the maximum each calendar year for those self employed is 25% of pre tax income to $ 52K. You might start 2014 with the required initial contribution and the sum that reflects the payments you had been making, as a 'catch-up' as starting at 43 y/o is later than most. If you can save a sum for a balloon payment as late as 4/30/2015, it can count for 2014. Re-set the DCA to reflect your income when you're comfortable with the automatic system.

There is a tax deduction for these contributions but a severe penalty + tax for any early withdrawal. This is not a put-in, take-out system. We use the sum of the tax deduction + DCA contributions to equal 17% of our gross income for example. We also pay ourselves first by taking 5% of the top of any and all sums, no matter the source, to a savings account. When the sum is sufficient, it's swept to investment.

We all have different systems, circumstances and risk tolerance. Since the banking debacle interest rates on savings is not keeping up with inflation so we keep losing buying power. It's really hard to manage savings for downpayment on home for instance. Did you know that if you aren't certain you will stay in a home a minimum of 5 years, it's not smart to buy.

If you'd like more details and discussion http://www.bogleheads.org/forum/viewforum.php?f=1

[NatG11]

Thank You for your advice. I will look into your recommendations. Thank you again for taking out the time to respond.

[scottish girl]

I just paid off my student loans. I have been working the past 5 years and 11 months on paying off 2 car loans and student loans for a total of $134,000 on a single income.

Now that I am debt free, I want to focus on retirement. I am 43 single with no kids and no retirement beside social security. I plan on putting the max into a ROTH IRA from now on. I am concern with not having enough for retirement.

Any advice please.

Thank U

Congratulations!!

[Kundan Lal Rana]

I just paid off my student loans. I have been working the past 5 years and 11 months on paying off 2 car loans and student loans for a total of $134,000 on a single income.

Now that I am debt free.

It's really great. Congrats!

[NatG11]

Thank You So Much!!!

[Eagle]

I just paid off my student loans. I have been working the past 5 years and 11 months on paying off 2 car loans and student loans for a total of $134,000 on a single income.

Now that I am debt free, I want to focus on retirement. I am 43 single with no kids and no retirement beside social security. I plan on putting the max into a ROTH IRA from now on. I am concern with not having enough for retirement.

Any advice please.

Thank U

Congrats! $134,000 in 5 years? Fantastic. A Roth IRA is a great option. Are you buying a house? Does your employer offer a 401k or 403b?

[Destind4]

Congrats!!!!

[alarson566]

Thats super awesome. My girlfriend is just at the start of such an financial climb, she had 90,000 in student loans that we both will be working to pay off for many years. Great to hear you made it out!

[LittleMissSplendid]

I just paid off my student loans. I have been working the past 5 years and 11 months on paying off 2 car loans and student loans for a total of $134,000 on a single income.

Now that I am debt free, I want to focus on retirement. I am 43 single with no kids and no retirement beside social security. I plan on putting the max into a ROTH IRA from now on. I am concern with not having enough for retirement.

Any advice please.

Thank U

Congratulations! I can't wait to one day say the same =)

[NatG11]

Thank U guys so much!!!

I will be starting a Roth IRA (no 401k at my job) and saving for a house one day. I do not want one right now but want to be in a position to obtain one.

[alarson566]

Congrats! Such a wonderful accomplishment!

[yellowpen]

A big congratulations of a huge financial event. You should be proud of yourself!