I have 18,000 debt in student loans, but i also want to invest ASAP . One of the benefits that i get from my first and new job is the 401k match 6% which is what i currently have , 401k is through fidelity , should i change it to IRA? I have 21 years old with a bachelors degree and the only thing i want to do now is invest , can you advise me on t
Hi Joce0420,
I would say do the company match upto the 6% match for the 401K. I personally would go all out on the $18,000 debt, so that it’s in the rearview. Also it depends on what percentage the debt is. Do you have a budget and a 6 month emergency fund? Just my opinion.
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I’m with @Nirav. Do only up to the match and not a penny more. Then put 100% of everything toward killing that debt as soon as possible. Once that payment is out of your life, then build up an emergency fund, THEN you start PLOWING money into investing. You’re 21. All that might only take a year or two. That means you’re investing with ZERO debt and a CASH BUFFER by 23. Don’t let the debt follow you around forever.