Thank you so much for your help pf!!!
What have you read that assisted in this area? I have started studying but feel a little overwhelmed.
Also, the car loan does have a high interest rate (10.25%) but the loan ends in 2008 and I have a plan to pay it off early thus the interest will only cost $300. The developed discipline of investing for retirement interests me greater than paying off a loan. I don't believe I will be in debt from that day forward as I have learned the value of saving and as of friday will be able to save a great deal of money.
A few more questions, I will have the opportunity to opt out of Social Security. Do I take the opportunity and invest in other retirement accounts? Also, not investing in Social Security will open myself to financial problems if I become disabled. In that case, what type of safety net should I invest in?
Happy to help.
I've read dozens of books and magazines. I also learned a lot through my time at Vanguard. I have 2 books on my must read list
: The Automatic Millionaire and Investing for Dummies. If you need help with general personal finance stuff then Personal Finance for Dummies is good too. I'd just read the Automatic Millionaire at the store (I'll take a couple hours depending on how fast you read) but Investing for Dummies has a LOT of info that can be good to refer back to as you learn more so it might be a good investment (used).
If you have weighed the advantages/disadvantages of not paying off your car loan then you are making an informed decision so go for it.
I would give my right arm to opt-out of SS. I don't think I'll ever get any benefit from it and would MUCH rather take home that 7% and invest it elsewhere...god knows it will benefit me more that way. But your point about disability is good so you should look into disability insurance (most people should have it anyway). I would shop around a bit (I think Bach talks about this in the AM) to make sure you're getting a good deal and make sure you get appropriate coverage (so it covers you for doing YOUR job, not just any job).
Good luck, it sounds like you're on a good path!