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Financial Planning / Paying For College


Subject:  Re: Investment Vs. Debt Repayment Date:  1/31/2014  2:42 PM
Author:  2gifts Number:  8101 of 8536

My company also offers 401k which I plan on front loading to maximum matched contribution and then not adding to it untill the next year.

Does your company offer any sort of match on your 401k contributions? If so, check to see how they do the match. I have worked at companies where it didn't matter when you contributed, but they would match quarterly up to their maximum contribution. But now I'm working some place where they will match a set percentage, but on every paycheck, so if I were to front-load my contributions as I did on the previous job, I would lose all the company match for any paycheck where I did not have a contribution. That is something you will want to check.

should I get into investing at all now or should I wait untill my loans are gone?

If you have enough money to cover all your expenses including your loan payments, then I would put money into investments from now as you have time on your side. Make sure, though, that you are also building your emergency fund to cover at least 3-6 months of your expenses, and keep that in cash somewhere, even though it will not earn much in the way of returns. In case of an emergency such as losing your job, you will not want to have to sell into a potentially down market to use your investments.
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