Comments on: What’s Your Highest Priority? House? Retirement? Or 529? http://www.thesunsfinancialdiary.com/random-thoughts/whats-your-highest-priority-house-retirement-or-529/ Sat, 21 Nov 2009 20:14:32 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Lazy Man and Money http://www.thesunsfinancialdiary.com/random-thoughts/whats-your-highest-priority-house-retirement-or-529/comment-page-1/#comment-132 Lazy Man and Money Wed, 01 Nov 2006 20:39:28 +0000 http://www.thesunsfinancialdiary.com/2006/11/01/whats-your-highest-priority-house-retirement-or-529/#comment-132 I'm not seeing where he said a big house. If he's buying too much then that can be a problem. Otherwise, I'm with Trent, and believe it's an asset. My parents could choose to use their home for a large chunk of their retirement. The cars could be a concern, but I'm also betting that he's been in school his whole life (having just got his PhD) and has driven whatever a $100 can buy that works. While I wouldn't say go and buy new, I can imagine that the family might need two cars, but only if he has a partner (which you don't mention). Also depending on what his PhD is in, I could see him having left over money. I’m not seeing where he said a big house. If he’s buying too much then that can be a problem. Otherwise, I’m with Trent, and believe it’s an asset. My parents could choose to use their home for a large chunk of their retirement. The cars could be a concern, but I’m also betting that he’s been in school his whole life (having just got his PhD) and has driven whatever a $100 can buy that works. While I wouldn’t say go and buy new, I can imagine that the family might need two cars, but only if he has a partner (which you don’t mention).

Also depending on what his PhD is in, I could see him having left over money.

]]> By: The Sun http://www.thesunsfinancialdiary.com/random-thoughts/whats-your-highest-priority-house-retirement-or-529/comment-page-1/#comment-131 The Sun Wed, 01 Nov 2006 20:10:06 +0000 http://www.thesunsfinancialdiary.com/2006/11/01/whats-your-highest-priority-house-retirement-or-529/#comment-131 Trent: I agree in this case the focus should be on the house downpayment. However, I don't think it's wise to simply put off retirement contributions (not 401(k) but IRA). Putting a small amount ($50, $100) into IRA shouldn't be too much a burden, but after 30 or 40 years, the regular small contribution will be huge. I just think saving for downpayment and retirement can go in parallel. Trent:

I agree in this case the focus should be on the house downpayment. However, I don’t think it’s wise to simply put off retirement contributions (not 401(k) but IRA). Putting a small amount ($50, $100) into IRA shouldn’t be too much a burden, but after 30 or 40 years, the regular small contribution will be huge.

I just think saving for downpayment and retirement can go in parallel.

]]> By: Trent http://www.thesunsfinancialdiary.com/random-thoughts/whats-your-highest-priority-house-retirement-or-529/comment-page-1/#comment-129 Trent Wed, 01 Nov 2006 18:43:52 +0000 http://www.thesunsfinancialdiary.com/2006/11/01/whats-your-highest-priority-house-retirement-or-529/#comment-129 The house downpayment is the obvious choice here, because it's an asset that you can use later to help pay for college via home equity loans and such, and it's not going to be a tax burden if the child doesn't need the help. I am keeping a small 529 for my child, but the brunt of my savings is for my home. The house downpayment is the obvious choice here, because it’s an asset that you can use later to help pay for college via home equity loans and such, and it’s not going to be a tax burden if the child doesn’t need the help. I am keeping a small 529 for my child, but the brunt of my savings is for my home.

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