Newbie here. IRA/Student Loans/Investing, which comes first?

Investing
#1

This stay at home order has given me the extra time to focus on things that matter, like my finances. I have $24K in student loans, no credit card debt, a mortgage loan and no car loan. I have a pension through work and am contributing $100 monthly ($50 to the pre-tax account and $50 roth). I also have a Vanguard traditional IRA account with a 401K rollover from a few years ago and a Vanguard Roth IRA that I have not contributed anything to. I have a $1000 emergency savings and since family lives with me, I am comfortable keeping it at $1,000 for now.

My Student Loan detail is as follows:
Outstanding Rate Min Payment
1,200 4% 14
1,359 4% 16
1,937 7% 22
4,361 4% 50
4,361 4% 50
5,816 4% 67
5,664 4% 65
Total 24,698 283

My first thought is to take the following steps:

  1. Contribute the $6K to the Vanguard Roth IRA this year and each year first. I could put $3K now and $750 from Sept to December to max out the $6K this year. I will do $500 each month next year.
  2. Throw any extra money towards the student loans to pay it down to zero balance
  3. Then when I am done with the student loans I will start putting putting more towards investing and savings.

Is that the right path to take? Your advice and suggestions are appreciated. Thank you in advance.

#2

Hey! This post might help you see where you fall in the steps. As always, getting out of debt fast (other than a mortgage) is always recommended. Paying down debt is a guaranteed return on your investment.

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#3

As @dgurgan said, definitely check out the phases of investing. Notably, I’d switch your steps 1 and 2. And I’d go HAM on those debts, attacking the smallest one first.

#4

Thank you both. This really helps!!

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