I have been thinking about retirement a lot lately.

I wanted to pay down my mortgage faster, first. & build more cash too.

But lately I have been thinking that it seems retirement money is pretty protected money. IT is golden. Tax savings vehicle, protected in all/most instances from bankruptcy, creditors, lawsuits, etc. Isn't it? Pay down your house and get sued, it could be gone. I have been thinking that perhaps we should make retirement savings our #1 priority. If we save less cash in the meantime, the retirement money could bail us out too. IT is so golden.

I think overall I will focus on a little of everything - just not put all of my eggs in one basket. That is all I am really opposed to.

I have also been thinking about this a lot in terms of return. Our mortgage is 5.75% interest and I believe with tax breaks it really amounts to 4%. Locked in forever... Before I looked at our cash and thought I have $5k making not that much more. I'd rather pay down the mortgage. BUT looking at my retirement I can easily have $200k in 10 years earning a far better return than my mortgage costs. From that regard it does make sense to focus on retirement money.

In the grand scheme of things nothing much has changed in my plan except once I get up to $15k or so in the e-fund, hopefully in the next year, we are going to focus on maxing out our retirement vs. just saving. I am a safe person and I like cash. But I think this is a good plan. We can still continue to add to the e-fund, small amounts, but contribute considerably more to retirement.

At most now we can save is $10k or so a year - and that would take a miracle - hehe. Maybe most of it to ROTHS and a little to the e-fund. Like $8k vs. $2k. But forget the mortgage 'til we have substantially more income. Maybe we can fully fund the retirement at $8k - wow!!

For now I would like to pay an extra $150/month mortgage if I can, but probably not unless I can also max out retirement. I guess if I can make that my rule - retirement first and then extra mortgage payments, it is not bad. We weren't going to considerably pay down the mortgage until dh got a job, but at that point we will probably be saving WAY more than the most we can contribute into retirement vehicles. At that point we will just be spreading out among all 3 - retirement, savings/investments, mortgage.

Since we have a lot less to work with today, retirement trumps the mortgage by a mile. With my renewed thinking. I am also considering putting off the final payment on my personal loan to next December instead of June. The interest rate is 3% I believe. We can save so much if I don't pay it off early as intended. December would still be 6 months early, but easier to swing, and we would have built up some nice cash too.

I am rethinking my "run out and pay off all the debt" stance. & even moreso my need to hoarde cash. Getting smarter I guess.

My parents taught me about living within my means and avoid debt, which has served me well, but little wisdom in regards to retirement and investing. I am not sure if I would have realized all this without this website. Wow! Nothing is black and white - that is for sure.

No matter what I will not put ALL my eggs in one basket. But I will start putting a lot more eggs in my retirement basket - that is for sure...