Saving for retirement these days is not an easy task for most Americans. But save for retirement and pay off student loans?
FORGET ABOUT IT.
Well not so fast..
We’re here to tell you that IT IS POSSIBLE to save for retirement and pay off student loans at the same time.
And don’t worry…
You’re not the only one struggling right now.
The Struggle to Save for Retirement
More than half of Americans won’t have enough to retire when the time comes. And that goes for both Millennials and Baby Boomers. And the issue is not an issue of money being available to the nation. There’s enough that flows through our hands.
The root issue is something else.
People are simply not saving. Indicators show that the rising cost of living matched with rising inflation play a large role. The possession of debt is also making things worse.
Others have started too late or never managed their own retirement fund. Based on what specialists are saying, anyone reading this is more than likely NOT on track to a healthy retirement. I hope you’re seeing the urgency in our words. It’s becoming an unpublicized dilemma that many will have to solve.
If not, they will feel the negative effects. The disparity is real.
We’re here to ensure that you’re not one of them. But you’re going to NEED discipline. More importantly, it’ll require the right knowledge.
The Obstacle: Loans and The American Student’s Struggle Out of Debt
When we look closer at these circumstances, we see it affecting all areas of society. No one in the country can escape it. But there’s one person who will suffer more than most. This struggle is worst for those paying off student loans and handling other forms of debt.
Especially those right out of school.
The premise is simple. Students have debt, and they need ways of paying off that debt.
But as they join the workforce, they need to also balance their debts with an honest aim for retirement.
The problem is they are often unemployed or underemployed right out of college. And preparing for retirement consists of one primary thing. That is. …some form of savings. Employees working their way out of debt are also faced with the same challenge more than half of Americans face daily.
The American people are either oblivious of their retirement obligations or they don’t know the proper steps to prepare for it. There is a cloud of negativity around pensions and 401(k)s that would send anyone running for the hills.
That’s why we wrote this. You won’t just learn the importance of retirement. You’ll develop a level of understanding to manage debt. That way, you start preparing for retirement. Since retirement prospects rest on savings, your greatest advantage is to start now.
Some Simple Steps to Save for Retirement And Pay Off Student Loans
Organize a Strategy
You have a few choices in front of you:
- Pay the loan off now–worry about retirement later.
- Go all in for retirement now–worry about student loans later.
- Or you can do a combination of the two just mentioned.
You can find a balance between them. This way, you’re investing in what’s most important while not overlooking your debt.
That balance you find is one where you acknowledge both your responsibilities without having either overbearing.
This is why we suggest meeting the lowest in your 401(k) plan requirements. The employer’s match program usually requires you to have six percent to qualify. This you MUST consider.
A Little is Better than Nothing
You need to understand what a savings does to get the full advantage of it. In a 401(k), for example, the power of it as a retirement fund is not because you put money in it over a thirty year period. Look at it this way.
A salary of $50,000 saves you little yearly.
If you saved 10 percent of it, which is $5,000 a year, you would have $150,000 to your name after thirty years of working. Less if you don’t work that much. Either way, it’s not much money. Add an average of 18 percent in taxation over those years. Your $50,000 salary becomes $41,000. …thus reducing your savings.
Make twice that much with $100,000, and you still have little–roughly $246,000–to retire on.
The power of a true savings is in what’s called the compound effect. It’s what a true 401(k) does and why you need it. Compounding $41,000 can generate millions by the time retirement comes.
A little is ALWAYS better than nothing.
Sooner Rather than Later
Retirement is all about time and compound interest in various forms. Not everyone is able to put away 10 percent at the moment. The task is to start. The power of a compounded savings is not about large sums.
It’s a simple philosophy that offers tremendous results by doing it.
So don’t worry about being unable to save what you want today. Just save something. That’s enough. Prepare, prepare and prepare. Those small efforts compounded over time turn into great rewards.
You’ll have something to live on in retirement because of it.
Do you think you can save for retirement and pay off student loans now?
I hope you believe it’s a possibility.
It’s not easy. But YOU can do it!
Are you struggling to save for retirement and pay off student loans?
Have any questions or anything you would like to add?
Leave us a comment down below and we’ll chat with you!