It’s me here, the non-PF blog-half with, like, no knowledge of investments.* What even is an annuity? (Please don’t tell me in the comments!)** I take the standard deduction on my taxes, yo. I do things the easy way.
student loans: on track to be paid off in approximately 2018 — oof! However, that’s assuming I don’t make extra payments, which I just did. (#2 says WOOO! )
My current principal is $14,712.20. Ow. My interest rate is somewhere on dl.gov but I am too lazy to find it. I do get the quarter-percent lower interest rate (or whatever it is) for automatic electronic payments. I consolidated at some point in the past when rates were good. The calculator-thingy says I will pay back over $18k if I stay on the graduated payment plan and don’t make extra payments.*** Ow, again.
The amount of my student loans seems like a lot. It’s mostly for undergrad, though I did take a few thousand dollars in grad school to get me through the summer once. I went to state schools and worked during the summers, but did not work during the school year for undergrad. All my loans are subsidized. I had them in deferment in grad school and I think for a while afterward. I am on the graduated repayment plan, in which payments increase every two years. I plan to make extra payments on top of this amount sometimes.
Car paid off. I moved to my current location from a big city, where I was able to use my partner’s car, get a carpool, or take public transportation. Here the public transit is practically non-existent, and my partner’s not here. So I had to buy a car. I made it my top priority to pay off, and I did it in around 18 months. (#2 says wooo!) I had a substantial down payment before I bought, around 30%. Some of this money came from generous gifts from family, including my partner.
Saving for house down payment some day. It really depends on where I end up living, though.
retirement: on track. I have automatic paycheck deductions and I set up extra savings recently. One of the perks of my job is that my employer makes a whopping large contribution, percentage-wise, to my mandatory retirement fund and I don’t have to wait for it to vest. My meeting with the guy from TIAA-CREF reassured me that I am ok to leave my settings alone for now and I might not be destitute when I’m old. I hope.
There. Are you bored yet?
*#2 says: note that #1 is the person who got me on the pf kick, way back in graduate school when she told me I shouldn’t keep my entire semester pay of 10K in a savings account when I could earn 5% interest on some in a CD (or money market) and still spend it when I needed it in the summer. That was AWESOME and eye-opening. I’d known about long-term stock investing but had no clue on more immediate concerns outside of savings accounts.
**#2 says: ooh ooh, I know this one! Social Security is an annuity! So are old-fashioned DB pensions. (#1 says: yes, this is exactly what I didn’t want to hear about.) An annuity is insurance against outliving your assets.
***#2: My BOE says that’s somewhere between 3 and 4 percent. So, higher than a savings account these days but lower than my mortgage. One day safe investments will be making more than again that but not today. Waaaay lower than the 7-8% loans my DH had for undergrad. (Shakes tiny fist at private loans.)