What’s the best way to save for retirement while paying down student loans?

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Posted by Melissa (MONEY FORUMS: 1, Answers: 0)
Asked on September 23, 2016 4:47 pm
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By putting any raises/extra income toward retirement. You won’t notice it!

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Posted by Melanie Lockert (MONEY FORUMS: 0, Answers: 65)
Answered: September 28, 2016 1:30 am
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This is a great question. Having student loans does not mean you can’t or shouldn’t start your retirement savings. First of all, If your employer offers a 401k or 403b plan with matching, you should maximize the match. If they match 100% of the first 4% of your income, then save at least 4%. This provides you with a 100% return on your savings!!!! You can’t afford to leave that money on the table! Another benefit of any company plan is that the income comes out of your paycheck automatically. Of course, if you don’t have a company sponsored plan you can save in personal retirement accounts elsewhere and arrange for the payments to come directly from your paycheck or bank account, so that you aren’t tempted to spend it. The total level of your savings depends a lot on your income and other expenses. Another good technique is when you get a raise or a windfall, put it right into a retirement account and keep living like you have been (unless your student loan debt is at a ridiculously high interest rate…then you might want to apply the extra to the debt.)

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: September 23, 2016 8:58 pm