Student Life >> Personal Finance >> Should I pay off student loans or start a retirement account
Should I pay off student loans or start a retirement account
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7 posts back to top |
Posted 18 days ago I just graduated from college and will start to have to pay student loans and personal loans within the next 5 months (about $18k) . I am also very interested in starting out a retirement account soon. I have been told that I can open an IRA for as little as $50 a month. Should I start to pay off the debt or start a retirement account? What is the best place to invest? I am 23 years old. |
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6 posts back to top |
| Posted 17 days ago It is very wise to begin planing your retirment the earlier the better. My recommendation will be do both. You cannot avoid paying student loans. There are many programs that will forgive part of student loans by doing volunteer work. Priority one is to pay off student loans and cut down on other expenses so that you can put away money for retirement. Good luck! |
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9 posts back to top |
| Posted 17 days ago I don't have any experience with this, but instinct tells me to get those loans behind you as soon as you can so that you can start that retirement fund. If you've just graduated, you have plenty of years ahead of you for building up your retirement fund, but I wouldn't want college haunting me for years to come while I have a nest egg starting. Finish paying for college and then move on. |
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2 posts back to top |
| Posted 16 days ago Both are very important decisoins. I have been working since I have been 15 and when I started working for my current employer 6 years ago as soon as I was able to contribute to my 401(k) I did and can say for 21 I have close to 15k banked. When looking for an employer since you a fresh out of college I would rec taking into consideration their retirement plan and what they match because what they match is free money. I also established an IRA and feel something as small as 25.00 biweekly is a very managable amount to put away. It goes right into my IRA and I don't even see it. Making student loan payments can be brutal but its a must. Also consider this as an option. My boyfriend made a commitment to himself, everytime he gets overtime he takes that money and puts it aside to make extra payments on his student loans, in addition to what his minimum payment is. He knows exactly what he needs to live on and any extras go to paying of debt such as student loans or credit cards.Hope that helps. |
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| Posted 16 days ago Start investing in your future and retirement. First off set aside a emergency fund so you are not left high and dry if "life happens" because it does. Get into the habbit of paying yourself first. Most experts recamend 10 percent of your paycheck. Get into this habbit sooner so it will be hard to break in the future. Than attack your debt. I read getrichslowly.com for advise on personal finance. it is a great blog. Also the military will pay off your tuition loans if you join for a three year contract most of the time. I am going to college for free because i was in the army- something think about. |
