Should I contribute to my IRA or pay of my student loans if the highest interest rate is only 4.66%? : personalfinance


I (25m) currently have about 19,600 in debt across 5 student loans. The interest rates are 3.76%, 3.86%, 4.29%, 4.29%, and 4.66%.

I contribute 6% of income to my 401k to get the company match, and have $500 in my IRA. I have enough disposable income that I can either max out my 2019 IRA contributions and continue to max every year, or pay off the 4.66% loan in late August and then continue to make $1000/month payments ($179 minimum) on the remaining loans.

I know it would feel great to knock out my debt, which I could probably do by the end of 2021 with no IRA contributions and then catch up quickly after the debt is paid off, but I feel like the IRA investments would yield more in the long run. Which one should I prioritize?



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