The average student loan debt load is now nearly $40,000! At the same time, studies show that Americans are not saving nearly enough for retirement. Rob West shows you how to balance paying off student loan debt with saving and investing for retirement. 
Paying down debt faster and investing more in a 401k both have their advantages:
<ul><li>Your 401k contributions are made with pre-tax money. It’s deducted from your adjusted gross income at tax time. That means you’ll pay less to Uncle Sam.</li><li>Because of the power of compound interest, time is critical when it comes to investing! That means age is one factor you’ll need to consider when setting your priorities. </li><li>If your employer offers matching funds when you invest for retirement, that is another key factor to consider. It’s rarely a good idea to turn down free money!</li></ul>On the other hand ... 
<ul><li>The sooner you pay off your debt, the sooner you can redirect that money into saving, investing, and other priorities. </li><li>Paying off debt will also help improve your credit picture overall as your debt-to-income ratio decreases. </li><li>Plus, paying off your student loans early means you’ll pay a lot less interest on them. </li></ul>Both options, investing more for retirement and paying off debt, have their merits. But there’s also a third option: You could opt to direct a percentage of your extra cash into each of them. 
Next, Rob answers listener questions including the following:
<ul><li>Is it best to meet with a financial advisor before beginning estate planning? </li><li>Does employment income impact Social Security retirement benefits? </li><li>Is there a good way to estimate what your RMDs (required minimum distribution) amounts will be in the future? </li><li>How greatly should a financial adviser’s fee structure factor into choosing an adviser? </li></ul>Remember, you can call in to ask your questions 24/7 at (800) 525-7000 or email them to Questions@MoneyWise.org. Also, visit our website at MoneyWise.org where you can listen to past programs, connect with a MoneyWise Coach, and even download helpful resources like the free MoneyWise app. Like and follow us on Facebook at MoneyWise Media for the very latest discussion! And remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

You have your budget; you’re living below your means and have some extra cash.  Now what?  For more than 40 million Americans with student loan debt, that’s a tough question. Should you accelerate those payments or boost retirement savings?

Student Loans vs. 401(k)

FaithFi | Nov 10, 2021

Show Notes

Where Faith Meets Finance

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