Saving for Retirement more Important than Paying off Debt
Those who start saving at age 35 years have a very difficult time putting away enough money to retire comfortably. The ideal time to start saving for retirement is your job first. If you have a number of private student loans, you’ll probably want to pay this off a priority, since the rates are variable and you do not so much repayment options. If you’re sure you’re where you want to be for the next 10 years or so and are eager to own a home, you can start a deposit fund as soon as you finish paying off credit card debt.
Prioritize retirement means paying off your debt and building an emergency fund will take longer, but so be it. The amount of extra interest you pay on your debt will be offset by tax benefits and investment gains you make in the long run in your retirement accounts. That’s because the federal student loans are relatively low, fixed prices and many flexible repayment options. You can also qualify for grants forgiveness in 10 years if you work in the public service or 25 years if you do not. An income-based repayment plan allows you to minimize your payments so you could cash for other purposes.