Actually, your rate of return is 50% on the match. You will make around $65k this year. For a 3% match, that's around $2000 that you are leaving on the table. And that doesn't include the accrued interest you will make on the $6000! I mean, we are talking about $160 per pay check on average. If you can't afford that much each pay check in order to make 100% ROI, then you are doing it wrong.


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so on another note skywest has a very large group of schmoes in new hire class.....can the semantics be done already? I'm just very tired of the constant lectures about performance..................

And our most recent position notice shows 4 upgrades.

I don't like to agree with you much but, this!

Like I said, seems like your current self is borrowing from your future self at a very high rate of interest. WMUpilot, I hope your math is right!

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 your interest rate is less than your rate of return on your 401(k), you're throwing away tens of thousands of dollars down the road. If they are equal, then you are better off paying off your loan.

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% +.




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When did this become the JP Morgan thread? Back to XJT rumors please. If I want to read about financials, I will pick up a WSJ.

Looks like we got TRICKED instead of TREATED by Management this Halloween