Student loan versus retirement savings is a challenge that many millennials face. Sure, you have a job now with real income, but retirement is far away and student loans are sitting and staring at you like some sort of monster. When your staff comes to you for advice, here is what you should say.
Never Give Up Free Money
Many companies offer matching funds for 401(k)s or other retirement plans. In this situation, you contribute a small amount of your paycheck to your 401(k) and your company puts an equal amount in. When you’ve vested in the account (usually five years), that company’s contribution is yours to keep forever. That’s free money. Contribute enough towards your retirement to take advantage of this free money.
Manage Your Student Loans
Dan Macklin, Co-founder and VP, Community & Member Success, of SoFi , a company which specializes in finding you the best deal for your debt, has a great suggestion: “See if you qualify to refinance your student loans and put the amount you’ve saved directly into your retirement rather than treating it as extra spending money.”
To keep reading, click here: Student Loans vs Retirement Savings: Which Should Be Your Priority?