restructuring: 401k, student loans and savings rate

[lootpacman]

Hi Guys,

My last thread with a lot of details was: http://www.savingadvice.com/forums/d...ns-faster.html

Recently, I have:
* Been laid off, I was leaving anyways (predicted it in thread link above...company restructuring...changing market...yadda yadda)
* Started a new job (pre-empted the layoff )
* Got a slight salary bump, now at 80$k per year

Current position:
Student loan debt: $17.2k
Emergency Fund: $8.8k
CC debt: <$200 i.e. my utility bills/month
401k balance: $20k... will need to rollover into IRA
IRAs: $6.5K (roth and traditional)

Upcoming needs:
* New apartment, may need $4k, first,last,security

1. New company doesn't offer any 401K match, and the fund selections are pretty bad, ex. Blackrock funds K class...will probably choose the Vanguard 500 Index Admiral Fund. Symbol: VFIAX

a) I was thinking of contributing 20% to 401k with no match? Is that too much?

2. I have three student loans left. Monthly payment $260 now.
Loan A: $6.2k @ 6.55%
Loan B: $7.1k @ 3.1%
Loan C: $3.4k @ 4.25%

My goals:
1. Pay off student Loan A before July
2. Increase retirement fund by $15k+ (since 401k is bad, not sure how much I'll put in)
3. Increase emergency fund, save 30% of each paycheck
4. Maybe rebalance my invests, IRA and 401k are currently using FDEWX, it's a target date fund. Was considering a Total Market index fund from Fidelity. Keep in mind I will roll my 401k into IRA from previous company.

Note: I will need the $4k to find a new apartment by end of April most likely.

What do you guys think? is 20% too much for bad 401k plan? and trying to save 30% of paycheck.

LPM

[Goldy]

Are you contributing to a Roth? I think everything else looks pretty good if you can swing it. What level do you want your EF to be at? Just to clarify, are you planning to increase your EF now or after you pay the loan off in July?

[feh]

Even if most of the options in your 401K are lousy, having access to VFIAX makes it all worthwhile. That would be my first choice for ongoing retirement contributions.

You'll have a wider choice of funds in your IRA for rounding out your portfolio.

[lootpacman]

Are you contributing to a Roth? I think everything else looks pretty good if you can swing it. What level do you want your EF to be at? Just to clarify, are you planning to increase your EF now or after you pay the loan off in July?

@Goldy,
I'm planning to increase the EF after I pay off the loan, because I will probably need to use part of my EF for the down payment on a new apartment (renting).

I would like my EF to be $10k by December (preference is actually $15k).

I was also considering to do less than 20% so I could contribute to loan payments more or build EF faster. So maybe 12-15%.

[thestrongprofessional]

Consolidating student debt

Hey lootpacman,

Have you considered consolidating your student debt? There are various banks out there that will help you consolidate your debt under one low interest rate depending on your qualifications. I've provided an article below with some of these institutions and their requirements:

https://studentloanhero.com/featured/5-banks-to-refinance-your-student-loans/

By doing this, you may be able to save hundreds if not thousands of dollars on interest payments over the life of the loan and reduce your monthly payments. I've had friends who pursued this option and it was a life saver for them. Hope this helps.

Raphael

[lootpacman]

Consolidating student debt

Hey lootpacman,

Have you considered consolidating your student debt? There are various banks out there that will help you consolidate your debt under one low interest rate depending on your qualifications. I've provided an article below with some of these institutions and their requirements:

https://studentloanhero.com/featured/5-banks-to-refinance-your-student-loans/

By doing this, you may be able to save hundreds if not thousands of dollars on interest payments over the life of the loan and reduce your monthly payments. I've had friends who pursued this option and it was a life saver for them. Hope this helps.

Raphael

Hey! I was able to pay these loans off a few years ago in late 2017 or early 2018 if I remember correctly. Great suggestion though.