3rd Quarter 401k Back in the Positive November 30, 2006
For the 2nd quarter 2006, I wrote that my 401k performance was negative. In the 3rd quarter 2006, I did better but not by much. At least it’s in the positive range. My personal rate of return for the period ending September 30, 2006 was: 3.54%.
Hope you’re doing better than that.
Lately I’ve been thinking of reducing my contributions to 401k to the minimum contribution dollar amount an employee needs to contribute to get the maximum employer match in order to pay off some home equity line of credit, which is at approx 8% or so interest rate. I’ve already maxed out the 401k in the past few years so I’m thinking that I can take a break until my higher interest line of credit is paid off. Is this a smart idea?
- Posted in : Retirement, Savings
- Author : Kyle
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Honestly, I am curious about your strategy. Did you keep contributing to your 401k? I stopped this at one point to pay down credit card debt, but I regret it because I missed out on some serious growth opportunities.
In the end, I’d probably recommend just slightly reducing your 401k contributions because you could make more on the market in the long run than you will “save” by paying down any debt that is less than 8 or 9% interest. The interest rate and investments are a key. So is an employer match.