Paying off college debt & saving for retirement at the same time - Is it possible?
RICHMOND, Va. (WWBT) - Folks who are drowning in student loan debt often ask: how on earth can I also save for retirement?
Michael Joyce with the Financial firm Agili says no matter how hard it is, you have to do both at the same time; you can’t ignore one at the expense of the other.
He says 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.
“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.
He adds you shouldn’t don’t leave money on the table. For example, if your company offers a 401K match - take it.
Even if you are just setting aside just one or two percent of your take-home pay in a retirement account, do it. He says every little bit helps.
A financial planner may also be able to help you figure out how you can afford to do both, pay down college debt while saving for your future.
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