Originally Posted by
wmupilot85
Oh, I am. Remember, if I make a $1,000 payment to student loans, that all $1,000 goes toward principal, which means a significant amount of interest gets kicked off instead of $700 going toward interest and $300 toward principal (just throwing a number out there). Total savings outweigh what I'd earn in interest from a 401k and the free money.
If 3 years of not investing into a 401k makes me unable to retire, then I've done more wrong in my career than not putting money away into a 401k for 3 years.
If putting in $4000 a year into your 401k is costing you more than $2000 in student loan interest, then you are potentially better off, depending on how the market does. And that would mean that your student loan interest is astronomically high! Also, keep in mind that your student loan interest is tax deductible. So your effective interest is lowered by your marginal tax rate.
My original point though was that your 401k wasn't just the interest you earned on what you put in. It's the interest PLUS the 50% match. So what you are is actually 50% + whatever interest the total ($6k) earns. Again, your ROI is actually 50% +.
Sent from my iPhone using Tapatalk