Needs advice, I’m a college new grad with ~28k student debt with low APR. should I still put money into 401K (max out?) and/or high premium HSA? Or should I focus on paying off the loans first?

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1. Pay minimum on your loans
2. Contribute to 401k up to amount you get the maximum company match
3. All extra money goes to paying off the loans
I paid off $30k in a year and a half out of school doing this.

likehelpful

I agree with this, but would add emergency savings (6 months of expenses) before putting in extra money towards debt. Also put your tax refunds and bonuses towards your debt. Those extra payments really make a difference

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Listen to Dave Ramsey - Youtube or podcast

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You have a great point here. Because of Dave Ramsey I am debt free except my mortgage. I am not even a Christian.

likehelpful

I’m bad as financing, but I think it’s better off asking stupid questions now than later ...

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The way all the debate is going to cancel all the student debt, I would pay minimum every month for student loans and max out 401K/IRA/Roth 401K/Roth IRA

likesmart

might as well just spend all your money hoping for the end of times to occur.

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with a disciplined budget you can do both and adjust where your money is flowing based on your risk appetite. if the debt gives you anxiety and you want to be done with it sooner, adjust your budget so more money flows to the debt.

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For what it’s worth, you should save 10-13% a year in your 401k. You can include employer contributions if you want but keep in mind those aren’t always vested when people leave.

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I would agree with this except Deloitte is shit for 401k best to pay off more student loans and put the minimum for company match which is .25 sucks. But at least bonuses at Deloitte are good.

Generally speaking it’s a wiser choice to put extra money towards investments if you have a loan under 5% APR as the market will likely have a better return than 5%.

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Is it when the economy has a downturn and you lose in one day in investment claue what would pay off a loan that is not dischargeable in bankruptcy?

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I would also throw $100 a month in the HSA never know when you need and it can be invested after hits 2k I think. Love it for contacts or occasional Dr visit

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check out how to use your hsa for tax free investing as well. basically you save into the HSA and invest it to grow tax free. you pay your medical expenses out of pocket while you're young and let the balance grow for when you're older.

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