Pay Off Debt or Save for Retirement?August 13, 2023
Should you prioritize paying off debt or saving for retirement?
If youre younger and have high-interest debt, tackle that first and pay beyond the minimum monthly rate.
Youll be able to stop wasting money on interest and then focus on long-term goals.
If you have low-interest debt but little retirement money, contribute to a 401(k) or IRA first, especially if youre older.
If you have debt with moderate interest rates, some retirement funds and decades left to save, strike a balance.
Consider your circumstances, and figure out what makes sense for you.
When it comes to financial priorities, the answer isnt one-size-fits-all.
Published with permission from RISMedia.