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Author: tc001 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75664  
Subject: Re: 401k Info Date: 7/1/1998 9:29 PM
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<<<I'm guessing that if this is your first 'real' job that the income is far greater than any income you
have had previously. Given that, I'd recommend putting the MAXIMUM permitted by the plan into it.>>>

<<That's a correct assumption, but I'm afraid that I also fell into debt some time ago, and need to pay
that off as quickly as possible.>>


To add two more cents to the pot, I would only contribute up to the maximum of the employer match. You'll never get a second shot at this "free money". Then I would defer all other cash to paying off the debt. After that debt is gone, THEN I would max out the 401K *and* an IRA.

Note: Some debt is acceptable, like mortgages. I also might not view student loans with too harsh an eye. When you say "debt", I tend to think of the bad kind characterized by high rates, large balances, and/or incurred for frivolous purposes (cars, vacations, restaurants, Christmas shopping, etc.).
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