Quote:
Originally Posted by maat55
I would concentrate on paying off the debt even before the 401k match.
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Quote:
Originally Posted by jIM_Ohio
the match is FREE money.
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Jim, I agree with you but for the benefit of others, it isn't just that the match is free money. It is the amount of that free money that really tips the scales. If you prepay $100 of a loan at 5%, you save $5 in interest. If you invest that same $100 and get a 50% match, you receive $50 free from your employer. Save $5 or earn $50. That should be a no-brainer. Add in the compounding growth that then occurs on both your $100 contribution AND the $50 matching funds and the advantage becomes even greater. Worried about the stock market? Fine. Even if you invest that money in a conservative, fixed-income investment, you'll still come out way ahead.
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Steve
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