Was an idiot and got deep into CC after graduation along with some medical bills. Finally after 5 years I am at a place where while I still have debt I can breathe and manage cash flows. How does my current 401k mix look or should I look to change it? Also, currently investing 4% to my 401k as my company matches up to 4%. Should I keep going after debt or should I bump up percentages to say 10%?

Debt:
7800 car
24000 (Student Loans)

401K (25K) Only have been investing for 2.5 half years as I took some time off to pay off CC

57% VFIAX
22% VIMAX
21% VSGAX

edit to say that I am 27 years old

I would say depends on your income and monthly budgeting / spending

If you make a lot, can Max 401k and still hammer away debt, then that's what I'd do
But if you're doing 4% 401k and barley making headway on the loans, then I'd consider slowing the 401k

The 401k is 100% stock, which a lot will tell you not to do, depends on your ability to tolerate risk and market downturns

I think you are doing a good thing in getting free money from your company with the match at at least 4%.

In my opinion, I would look for other ways to save than cutting your 401(k). By the time you pay taxes on it plus not getting your free money match its a tough way to get ahead.

Are you upside down on your car? Get that paid off and don't into another car loan until you pay off your student loans.

Do both by cutting your expenses hard. It's not as bad as you may think.

Interest rates on car and student loans?

How much do you have to pay towards debt each month now?

Is your employer 401k matching dollar for dollar? Or do you need to be investing more than 4% on your end to take full advantage of the 4% match?

Do you think you will stay at that company long enough for their 4% to vest? If so, keep getting that. It's a guaranteed 100% return.

Otherwise, I'm guessing the credit cards are at a higher interest rate than you're likely to earn on any investments. So I'd focus on paying those off, and not worry about investing.

YNAB.com

John Francis Donaghy said:

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Interest rates on car and student loans?

How much do you have to pay towards debt each month now?

Is your employer 401k matching dollar for dollar? Or do you need to be investing more than 4% on your end to take full advantage of the 4% match?

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Car rate is currently at 4.24%
Student Loan is currently at 6.25%.

Company is matching me dollar for dollar up to 4%. So I am currently taking full advantage of the company match.

I get being diversified into Bonds as well as Stocks, but at 27 and playing catch up while saving for house and ring for my girlfriend wouldn't I want to be all in on stock for the next couple of years?

One other thing to remember is not to get everything tied up and then end up getting back in CC debt again or paying a penalty when you dip into retirement early if you have an emergency. Especially if you have a relatively low margin and have payments (car, loans) you need to make sure you have some type of emergency fund or safety net.

I would keep the 4% match but everything else I would throw at the student loan / car debt. The car interest rate isn't horrible but the student loan is pretty high and I would focus on getting those gone. I would do some excel work and figure out, depending on your free cash flow, if paying off the car quickly then focusing on the student debt comes out better or working on the student loan first. Sometimes getting a smaller cheaper debt off the books quickly is better than focusing just on the higher rated larger debt and is also a good emotional boost.

As far as being all in on stock, I go by the rule if the purchase is <3 years then I wouldn't be all stock on it and >3 years then equity is fine as you can weather most downturns in that time frame. It all varies by the individual. Good luck man!

Take the free money with your 401(k) match and hammer the debt down as much as possible and as quickly as possible. I say this because you mentioned getting a ring for your girlfriend. If marriage and a family is on the horizon, your discretionary cashflow may take a hit and you might find your ability to pay down debt diminished. This is all assuming your earning potential will continue to grow throughout your career and you'll be in a better place save more over time. There's so much more to it than this but you can never go wrong focusing on debt reduction - especially prior to having increased financial obligations that can come along with starting a family.

Good luck and I wish you the best for your future.

Get the employer match, then set up and contribute any overage to a roth ira (vanguard is cheapest, free to open, takes about a week to link to checking acct). Increase roth contrib by 1% (or more) every january until you max, then shift back to the 401k and start adding +1% (or more) each new year.

Max 401k. Pay off debt. Get a budget and track. Pay everything you can by a rewards credit card, assuming you can pay off every month - makes it easier to track plus you get rewards. Win/Win. Then you can see where your money is going by $ and %. Then cut expenses where you can-this savings goes to the highest rate debt.

Take whatever you are saving for a ring and apply to your debt. If your GF is smart she will be glad she's not marrying into or taking on additional debt when you say "I do".

Also - seems like you have a good head on your shoulders.

Once paid off, drive that car until the student loans are paid off.

Ideally longer so that once you have no debt...you can focus on catching up on 401k/investing before getting into another car loan.