Pay off student loans or save for downpayment

"Not sure where you are getting that from"

It was only an example swe. Just trying to understand the recommendation, not trying to give you grief. Sounds like there is some level of interest rate that would flip the recommendation (between 3.5% and 20%). Tough for me to get my head around, the value of compounding dollars 30 years from now vs. risk and cost of current debt. I would get rid of the debt first.

Geek -- My only point is that it would not be a very interesting story. Of course, I have a high threshold for boredom, which is why I am on this thread!

May I add that "bluepanda" sounds like the name of a sheet of paper that one should lick for a very groovy trip?

No

See other advice on anger management/quelling the need to troll.

No, I'm a very real person, asking a very real question about what to do with my savings and debt.

And FYI, the place I am considering is a 2 bedroom 2 bath for about $669,000. I'm considering this in connection with moving in with my GF. I figured if I could just buy a place and then have her pay part of the mortgage instead of splitting the rent, it ought to be something I consider. Obviously we might break up, the roof might cave in, etc...

It was only an example swe. Just trying to understand the recommendation, not trying to give you grief.

> Sounds like there is some level of interest rate that would flip the recommendation (between 3.5% and 20%).

So would a ton of other factors. So would him living in Greece. Or making $50k.

But he gave the specific parameters, including his rates.

With loan rates near inflation, paying them off quickly when you haven't put enough away is simply a bad move. Getting your cash reserve and paying off gross interest rates (lets say double digits) and then getting your retirement compounding going is a good #3.

If I contribute $5K to my IRA now, for 2010, can I deduct it off my income when I file?

You earn too much. Assuming your employer offers 401K.

Too much for deduction, but not too much to contribute and have your gains/interest sheltered from taxes.

Please note that I am not an attorney, nor a tax professional, nor even a real person. I'm a username on an anonymous discussion board in cyberspace. Consult a professional professional.

>Please note that I am not an attorney, nor a tax professional, nor even a real person. I'm a username on an anonymous discussion board in cyberspace. Consult a professional professional.

Is your husband a litigation partner at a large law firm?

>Please note that I am not an attorney, nor a tax professional, nor even a real person.

And let me guess, you aren't even affiliated with another real estate web site

"So would a ton of other factors. So would him living in Greece. Or making $50k."

Yes, but what I was asking was at what interest rate does your recommendation change? 4.5%? 8.5%?

why do you care?

the good news (for you) is that he is going to buy something.

> Yes, but what I was asking was at what interest rate does your recommendation change? 4.5%? 8.5%?

Scroll above, I answered that.

But, back to the point I was making, if you can change one variable, why not change the others too?

But, in any case, the recommendation stands based on the actual situation.

so the girlfriend is going to be paying part of your mortgage???

1) Don't pay off the student loans - that's a terrific rate with very manageable low monthly payments
2) If you still own the car, sell it and use the proceeds to pay off part/all of the balance
3) Continue to invest in your 401k at least up to the max that what your employer matches - it's an immediate 50-100% return on your investment in many cases
4) Rent with your gf below your means for a few years and build capital. My guess is that as a young, upwardly mobile attorney, you will quickly outgrow any place you can afford in the near term and will want to move before your property appreciates enough to matter/break-even. Plus you won't have to deal with any break-up risk.