True, but most matching is limited to some small percent of your salary (say 5%). So if you make $50,000, your annual matching tops out at $2,500. So yes, you should definitely contribute up to the matching max (I implied this in my $50-$100 a month comment, but that should probably say $50-$100 a paycheck) to take advantage and use the rest to pay off the loans.
What are you talking about? What tax advantage? If you’re referring to Roth growth, that’s still taxes you pay now. If you’re referring to normal growth, that’s taxes you’ll pay later, which will probably be more than now.
Seriously, if you know of a way for me to turn $100 to $230 via a 401k, PLEASE let me know. That’s literally the greatest investment ever. Unless you bought Apple stock in the 80s.
You forgot one big factor: time value of money. You can’t really access that money for 40+ years and nominal money in the future is worth a lot less than money no.
Let’s say that you’re considering where to put $100 and your final return on your 401k after compound growth is 20% vs 6% student loan interest now. Would you rather have $120 in 40 years or pay off $100 of student loan interest, also saving you $6?
Yeah that was painful to read. Just another supporting point that everyone should have a personal finance class in high school. Everyone knows that the mitochondria is the powerhouse of the cell, but how many people know how compound interest works?
Pro tips from a CPA that dabbles in personal finance:
Contrary to lots of advice you’ll see out there, don’t make any sizeable contributions to your 401(k) until you’ve paid off your debt. Throwing in $50-$100 a month in there and letting that nest egg grow is fine, but because I assume that the interest rate on your loans is higher than your 401(k) return (and if it isn’t, please let me know where I can get 6-7% guaranteed returns), you should focus most of your money to paying off the debt.
Don’t get into credit card debt. Use credit cards to your advantage to rack up points or rewards (American Express’s 6% cash back on groceries card is fantastic), but pay them off in full each month.
I would just like to point out that track suits are not exclusive to Italians; Russians wear them all the time too (must be a mafia thing).
You haven’t seen anything until you’ve seen a middle aged, balding Russian man wearing an Adidas track suit zipped 3/4 up, chest hair showing, and sporting some really nice dress shoes. Given that it’s in my genes, a part of me hopes to be that cool 20 years down the line.
Will, please don’t turn this site (at least not the articles themselves) into another political scrap heap. There’s way too many of those on the internet and being able to read about Girl’s Basic-ness or Boston Max’s friend zone or Duda’s condom-less sexcapades provides a welcome reprieve from all that.
If San Francisco didn’t already have some of the most strict gun control laws in the country, we’d be having constant coverage of how we need to tighten gun laws.
Similarly, if it was a Democratic Congress member that got shot up by a Republican voter, we’d be having constant coverage about Trump’s hate rhetoric and gun-loving Republican NRA members.
Outside of client facing jobs or politics, who still wears a suit every day to work? We do business casual at my job and even that is stricter than most places.
I’d be interesting in hearing about it. Having settled into a very steady serious relationship, I now vicariously live through hook up stories on this site.
“‘With the waitress hovering over their shoulders while they all still deliberated on what to get, she finally asked Caroline, “Do you want to split the goat cheese salad? TBH, I’m not that hungry.’”
Ok, deFries, serious question: do you just write “TBH” to make it seem super basic to us, or does Girl actually say it out loud (“…tee bee eich, I’m not that hungry.”)?
Road trip guy: look up Lincoln Park golf course in San Francisco. It’s not the nicest one around, but it’s inexpensive and you’re treated to amazing views of the Golden Gate Bridge and the ocean. Just be warned: it’ll be cold. Like low 50s cold. And probably foggy. And windy.
Advertise
True, but most matching is limited to some small percent of your salary (say 5%). So if you make $50,000, your annual matching tops out at $2,500. So yes, you should definitely contribute up to the matching max (I implied this in my $50-$100 a month comment, but that should probably say $50-$100 a paycheck) to take advantage and use the rest to pay off the loans.
What are you talking about? What tax advantage? If you’re referring to Roth growth, that’s still taxes you pay now. If you’re referring to normal growth, that’s taxes you’ll pay later, which will probably be more than now.
Seriously, if you know of a way for me to turn $100 to $230 via a 401k, PLEASE let me know. That’s literally the greatest investment ever. Unless you bought Apple stock in the 80s.
A lot less than money now*
You forgot one big factor: time value of money. You can’t really access that money for 40+ years and nominal money in the future is worth a lot less than money no.
Let’s say that you’re considering where to put $100 and your final return on your 401k after compound growth is 20% vs 6% student loan interest now. Would you rather have $120 in 40 years or pay off $100 of student loan interest, also saving you $6?
Yeah that was painful to read. Just another supporting point that everyone should have a personal finance class in high school. Everyone knows that the mitochondria is the powerhouse of the cell, but how many people know how compound interest works?
Pro tips from a CPA that dabbles in personal finance:
Contrary to lots of advice you’ll see out there, don’t make any sizeable contributions to your 401(k) until you’ve paid off your debt. Throwing in $50-$100 a month in there and letting that nest egg grow is fine, but because I assume that the interest rate on your loans is higher than your 401(k) return (and if it isn’t, please let me know where I can get 6-7% guaranteed returns), you should focus most of your money to paying off the debt.
Don’t get into credit card debt. Use credit cards to your advantage to rack up points or rewards (American Express’s 6% cash back on groceries card is fantastic), but pay them off in full each month.
I would just like to point out that track suits are not exclusive to Italians; Russians wear them all the time too (must be a mafia thing).
You haven’t seen anything until you’ve seen a middle aged, balding Russian man wearing an Adidas track suit zipped 3/4 up, chest hair showing, and sporting some really nice dress shoes. Given that it’s in my genes, a part of me hopes to be that cool 20 years down the line.
Username checks out.
Seconded. I need to know what terrorist threat I should fear as much as I fear getting diarrhea after eating at Chipotle.
Will, please don’t turn this site (at least not the articles themselves) into another political scrap heap. There’s way too many of those on the internet and being able to read about Girl’s Basic-ness or Boston Max’s friend zone or Duda’s condom-less sexcapades provides a welcome reprieve from all that.
And that’s fantastic for all of the 7 people who watch MSNBC, but not for other sources that more people watch.
Look at CNN.com right now. Its top story is about Bill Cosby.
That’s because they don’t fit the narratives.
If San Francisco didn’t already have some of the most strict gun control laws in the country, we’d be having constant coverage of how we need to tighten gun laws.
Similarly, if it was a Democratic Congress member that got shot up by a Republican voter, we’d be having constant coverage about Trump’s hate rhetoric and gun-loving Republican NRA members.
Outside of client facing jobs or politics, who still wears a suit every day to work? We do business casual at my job and even that is stricter than most places.
I’d be interesting in hearing about it. Having settled into a very steady serious relationship, I now vicariously live through hook up stories on this site.
And you haven’t submitted this low key very cute story to PGP because…?
That’s awesome! I think the PGP community would benefit from hearing about how this happened so that they retain some hope in “sup”-ing someone.
Good lord. You really enjoy digging your own grave before working your ass off trying to get out.
“‘With the waitress hovering over their shoulders while they all still deliberated on what to get, she finally asked Caroline, “Do you want to split the goat cheese salad? TBH, I’m not that hungry.’”
Ok, deFries, serious question: do you just write “TBH” to make it seem super basic to us, or does Girl actually say it out loud (“…tee bee eich, I’m not that hungry.”)?
You should bang Lyla. Mia’s reaction to that will 100% tell you her underlying motives.
Road trip guy: look up Lincoln Park golf course in San Francisco. It’s not the nicest one around, but it’s inexpensive and you’re treated to amazing views of the Golden Gate Bridge and the ocean. Just be warned: it’ll be cold. Like low 50s cold. And probably foggy. And windy.