Meet Alice
Age: 37
Salary: $83,000
Employment: Account Supervisor
Savings and Investments:
- Checking – $2,500
- Savings – $5,000
- IRAs and 401k (including husband’s funds) – $105,000
Debt:
- Credit cards: $13,500
Alice’s main concerns, in her own words:
Want to get serious about debt and saving. Debt: 13,500 excluding mortgage (10.5 at 0% until April 2016; remainder car loan) Assets: 2500 checking 5000 saving (emergency fund) ; $105,000 in 401K and IRA between me and my 50-year-old husband. Made a budget and set up automatic payments to debt, IRAs and 529s (6yo son, 4yo daughter). Then my husband lost his job. My job will pay the bills, including debt and I have auto deductions of 7% of salary to 401K. But this leaves nothing for funding IRA, 529 and emergency fund.
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Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.