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Mike: You asked: So the question is, should I pay
bills before investing more in a 401K or vice/versa?


The short Foolish answer is that you should really consider paying off all debt before beginning to invest in the markets. As always, it's a personal preference.

My take on your paying off loans is that you should pay off the higher interest rate first (even though it will take longer to retire.) These loans are really impacting your spendable cash; reducing or eliminating them will make you and your family feel better about things. If you are planning to buy other "loan" type purchases in the future, I'd also consider saving for them, starting now, too. Of course, which would you like to do first?

Have a Great Day!

OldToad
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