The Driver
I drive.
$3,000 a month?!
I think there's something to be said about axing those student loans. Something happens psychologically that improves your state of mind. I say get rid of all your debt, OP.
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- Thread starter UPSER110
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$3,000 a month?!
I think there's something to be said about axing those student loans. Something happens psychologically that improves your state of mind. I say get rid of all your debt, OP.
lol true, no one bid it last year, they would always put me on it so I decided to bid it this year. It was one of 4 routes available when I bid.
Yesterday I ran a bulk truck with 150 pieces. Left the building with my route at 1030. 44 stops 240 miles, 10.35 hrs paid.
I've been listening to Dave Ramsey's podcasts alot and debt free is the way to be.
ManInBrown
Well-Known Member
Don't get too excited. Take home won't be as much as you think. Uncle Sam is licking his chops. Congrats
Brownslave688
You want a toe? I can get you a toe.
It can that's why we are on a 5 year loan plan. But not at the expense of retirement. You can never get back those early years of growth in your 401k.
Trust me my wife hates her student loans and asks all of the time why we can't just put the 401k money towards them. I run a retirement calculator for her and show her she'll retire with millions. Then all is good again.
UpstateNYUPSer(Ret)
Well-Known Member
....and not have to worry about having a college degree or the debt that goes with it....
35years
Gravy route
It all depends on how you invest the 401k, what interest rate the student loans are at, and what tax rate he paying. Remember that you will eventually be paying uncle sam taxes on that 401k in retirement. The common advice is that you will be paying at a lower tax rate in retirement...Not always true if you have put aside a significant potion of your income and have a generous pension.
If he has unsubsidized student loans with relatively high interest rate he may be better off paying off the loans first, especially if he is risk-adverse in his 401k and has other substantial tax deductions..
If, on the other hand, he has low interest loans, a high tax rate, and assumes a reasonably aggressive investment mix in his 401k, he might be better off putting more in the 401k.
Bankrate has many tools and articles about personal finance. Here is one that fits your situation...
Should You Pay Debt Before Saving? - Bankrate
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UpstateNYUPSer(Ret)
Well-Known Member
To me it makes little sense to have $20K in a 401k and $20K of student loan debt. Pay down the debt then focus on your retirement.
dudebro
Well-Known Member
It does make sense, if it costs only 15k to put that 20k into the 401k (pretax investment), and if the ROR on the 401k is 7% or better, while the interest on the student loan debt may be lower (and should be calculated AFTER any tax writeoff). The early years of interest on a retirement account are HUGE.
PT Car Washer
Well-Known Member
Throw in Saturday Air and Air exception work and $50K to $60K is realistic.
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