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That's right, I'm 10 weeks "fresh" out of college. (But I'm not past my expiration date, yet. Just noone's bought me from the grocer's shelf.)

Obviously, I've got to get rid of my CC debt first. But then what? I'll probably have a 401k started w/ my employer. (Seems most employers have that option for Engrs.) Should I get my Roth started before I work on majorly killing off my student loans? Or is there something else that I'm missing?

Thoughts? Experiences? I'm not too fond of this student loan that's been with me since the beginning of my "4-year" education. How much should I let it bug me?

(4 years? HA!!!)

Thanks for your input!

Becky
...who is ANXIOUSLY awaiting her FE results...
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That's right, I'm 10 weeks "fresh" out of college. (But I'm not past my expiration date, yet. Just noone's bought me from the grocer's shelf.)

Obviously, I've got to get rid of my CC debt first. But then what? I'll probably have a 401k started w/ my employer. (Seems most employers have that option for Engrs.) Should I get my Roth started before I work on majorly killing off my student loans? Or is there something else that I'm missing?

Thoughts? Experiences? I'm not too fond of this student loan that's been with me since the beginning of my "4-year" education. How much should I let it bug me?

(4 years? HA!!!)



4 years? Moi, I took the 10 year plan while changing my major numerous times before settling on EE.

My advice:
* debt payoff first, whatever you pay on debt effectively earns you a better return than any funds you put into savings.
* after debt payoff, take the money you were paying on debt payoff & dump it into whatever savings plan you decide on.


BTW, most employers seem to have a one year employment period before you can participate in 401K programs.
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I would pay off my debt before worrying about investing. That said, I might consider putting 1% of my salary toward a 401(k) once I could until the loans are gone. Remember, I am not a financial advisor, I just play one on the internet.

[i] ...who is ANXIOUSLY awaiting her FE results... [/i]

Don't stress over them now! The time to worry was when you took them. You're from Iowa St. right? There's a guy working at my office from there and if you are close to being as smart a cookie as him, you did fine. OK?

By the way, your football team is going down on October 27th!

Gig 'em.
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Yeah, paying the CC debt down first is probably a good idea...

But then I'd start on your Roth as long as you can still make your monthly loan payments on the student loans. I don't know the income trends in your particular field, but an engineer probably has a limited number of years they can contribute to a Roth before their income goes over the cap.

Besides, the interest rate you earn on your Roth investments will probably be higher than the interest you pay on the student loans, plus the interest itself is untaxed.
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Becky,

Where are you working? Just curious.
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Becky,

Where are you working? Just curious.


Well, uh, I'm still working on that minor detail... I've been making phone calls and have a meeting set up for next Wednesday, but I am not sure if it is an informational interview or a true interview. I am calling on Monday to confirm the location (the gent was supposed to get back to me on Friday, but didn't). It's with an Architectural Acoustics contracter in the area; I'm hoping for the latter case (i.e. a job interview), or at least some good info on other firms.

Why, do you know anyone who needs an acoustical or noise control engineer in the Miami/Fort Lauderdale area? :) Doesn't hurt to ask, I guess...

Becky
...who is feeling sheepish for counting her chicks before they're hatched.
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Why, do you know anyone who needs an acoustical or noise control engineer in the Miami/Fort Lauderdale area? :) Doesn't hurt to ask, I guess...

Acoustics? I was recently called about a position at a company called AUTEC (a subsidiary of Raytheon). The position was out of West Palm Beach or Miami (can't remember), but there was some travel to an island in the Bahamas :) They test torpedoes and, as you may imagine, there is a great deal of acoustics involved. I had already accepted a job so I didn't pursue the matter further, but I encourage you to call them. Ring up Heidi Blake (561) 832-8566 x7432.

Good luck on your possible interview Wednesday and stay positive!

ug
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Hey there - welcome to the working world. Here are my thoughts on your situation, I was in the same boat myself 6 years ago.

I had CC debt out the wazoo and paid that off simultaneously with making investments. Being an engineer, you'll find that you have more $ as time goes by, but that time aspect is critical to an investor. Put both aspects (long term and short term) to work for you - reap the benefits of the time value and compounding of a Roth IRA or 401K for the long term. Meanwhile, "make money" in the short term by paying off that CC debt sooner (the sooner you pay off your cc committment the less you will spend in interest). Think of your aggressive paying off of that cc as putting $ in your pocket. You might consider getting a 12 or 24 month debt consolodation loan (better rate than a credit card) that would force you to pay that blasted thing off. After you do - pay off that balance every month!

If you've got some student loans (like a Stafford) pay those on their graduated scale - the interest you pay is tax deductable for a couple of years. The interest rate is lower than a cc and this is one of the best debts (if there is such a thing as "good debt") you can have in establishing a good credit rating.

So in short:
Do contribute to a Roth or 401k - even if just a little bit.
Do whatever you can to pay off that cc debt.
Pay off any student loans on their normal repayment schedule.

Obviously these are my viewpoints but I hope this might help you in your decision making.

Happy trails,
JDub
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