You may be wondering about the right way to go about paying off debt, investing for retirement, or both. Well, I'm here to help you determine the right plan and guidelines for the best return on investment and the best results for your financial goals. Here is a simplified plan on the best way to pay down debt, set up an emergency fund, and plan for retirement.
If your employer matches 50% up to the 401K maximum, you should take advantage of this return. The correct way to look at an employer match is as a guaranteed return on your investment. A 50% match equals a 50% return on investment, which is outstanding.
Contribute to match
Set up an Emergency 3-6 month Expense Fund
Pay down Interest bearing debt such as Credit Card – Not Mortgage
Try to then contribute as much as possible to 401k – not only to save for retirement but also because of tax benefits
Disclaimer: The content on this site is provided for information and discussion purposes only. It is not intended to be professional financial advice and should not be the sole basis for your investment, financial or tax planning decisions. Under no circumstances does this information represent a recommendation to buy or sell securities, or any other products, or services. All content and information is subject to change at anytime.