Save for Retirement While Paying Off Student Loans
In a conversation with Rachel DePompa of NBC12, Michael Joyce reminds us that it’s important to save for retirement while paying off student loans. No matter how hard it is, it’s important to not ignore one at the expense of the other. You have to look at how much you are going to pay on the student loan over the minimum amount versus how much you are going to put into a retirement account.
Retirement Savings Compounds and Taxes Are Postponed
“In a retirement account what’s always important to remember is not only are the funds in there not taxed until well into the future, but that money grows. It compounds without a tax drag,” said Joyce.
Save Up to Your Company’s 401(k) Match
Michael adds you shouldn’t leave money on the table. For example, if your company offers a 401(k) match, try your best to save up to that match amount. But even if you are setting aside just one or two percent of your take-home pay in a retirement account, do it. Every little bit helps.
A financial planner may also be able to help you make a plan to save for retirement while paying off student loans. Our team of experts at Agili would be happy to help.