re: Student Loan Planning/Strategy

quote:

---

If you are already enrolled in a thrift savings plan with the govt, then good for you. Make sure you are maxing out the match funds or you are leaving free money on the table.

Depending on your tax circumstances, you may be better served with a traditional IRA. The trad IRA can't be touched until retirement without penalties, BUT it is potentially deductible on your 1040 (depending on your income levels).

The benefit to the Roth is liquidity: all contributions can be withdrawn at any point (earnings must stay in until retirement, but they are tax free when withdrawn). So you can treat it like a savings account of sorts.

The larger point is this: the earlier you can start saving, the better. Market advantages (earnings) are better over the longest term possible, generally speaking. Don't wait until you feel comfortable or secure to start saving for retirement. Build it into your budget as a non negotiable thing.

Think of it like this: your retirement savings are more important than cable, high speed internet, or a cell phone. Don't go paying for all of those until you pay yourself (retirement savings) first.

---