As I mentioned in yesterday's post, the company that Pa works for is lowering their 401k match.
So the question was - what to do with that other 4%?
Pa and I discussed it a bit, but we each had a different idea - we just weren't sure. We don't have to decide for a couple weeks as they are matching up to 8% until April 1st, but we wanted to be ready and confident to make a change at that point.
But to what? I feel that both of our thoughts had good reasoning, so we were left with - which was the smartest choice? So I emailed Mary, the author of the Debt-Proof Living book that we favor, and I asked for her help with the answer. To...
A. Keep it where it is, regardless
B. Move that 4% to the debt load
C. Start an IRA
Mary responded very quickly - I was tickled. Mary said, without hesitation....
D. Use that money to continue to build the Contingency Fund if that's not fully funded (6 months pay)
Because that's crucial - more so now than ever with so many around us losing their jobs - it very easily could be us next. We need to be prepared. And IF that is fully funded, then use that 4% to pay down the unsecured debt.
It's good to have a plan. Thank you Mary.
That is awesome that she answered so quickly. I am in the midst of reading her book now. We just paid off our last debt aside from our mortgage but now I want to get that paid off and get different funds set up. Thanks for the info. you always pass on.
Posted by: Laurie Gelo | March 06, 2009 at 07:47 AM
He is lucky that they are matching even somewhat still. Our match was totally taken away, among many other things...
Posted by: ashley | March 06, 2009 at 08:46 AM
torm, your clarity of thought always amazes me knowing that you have so much on your plate and 4 kids to tend to. truly inspiring. and mary just went to the top of my cool people list----i mean, really......how cool is she!??
Posted by: tania | March 06, 2009 at 09:06 AM