Financial confusion, help please!
January 4, 2012 9:46 AM Subscribe
Should we file taxes separately or jointly? Pay off a chunk of student loans now or pray for forgiveness? Help me identify the interaction of these questions. I'm not good with money! Details inside.
posted by powerbumpkin to Work & Money (15 answers total) 1 user marked this as a favorite
Me: 30 y/o graduate student who will finish PhD in a year. 45K in interest-deferred student loan debt. Not sure of interest rates on various loans. No credit card debt. No car payment, etc. 21K in Roth IRA. 13K in savings. Present income hand to mouth. Future income 50K+.
Him: 27 y/o stable corporate job w benefits earning 42K annually. 11K in student loans, being paid as agreed on 10 year plan. No credit card debt. Contributing to Roth up to maximum company match. Savings are small but growing.
-We are getting married in 10 months.
-We want to have kids. I want to stay home with them some, therefore I expect to be in and out of the paid labor force over the next few years.
-We want to buy a home where the mortgage (and insurance, property taxes) will be less than we pay in rent. This is possible where we live.
-I will probably be eligible for Income Based Repayment. I may also be eligible for Public Service Loan Forgiveness (if a non-partisan policy institute on a state university campus qualifies).
-Can I consolidate my student loans now for lower interest? Should I? How?
-I have this urge to use my savings to pay down student loans, but I think it might be stupid since forgiveness is a possibility. What would you do?
-I am confused about whether there is more financial benefit to filing our taxes separately or jointly. His considerably better financial situation might preclude me qualifying for Income Based Repayment. What things should I be considering?
-If the advice is: consult a financial planner, can you tell me where I can find someone who won't steer me wrong?
I'm kind of an idiot financially, luckily I'm a pretty frugal idiot.