You are using an older browser version. Please use a supported version for the best MSN experience.

Paying off college debt & saving for retirement at the same time - Is it possible?

Richmond-Petersburg WWBT logo Richmond-Petersburg WWBT 5/31/2021 Rachel DePompa
It's possible to save for retirement while pay off your college debt at the same time (Source: file photo) © Provided by Richmond-Petersburg WWBT It's possible to save for retirement while pay off your college debt at the same time (Source: file photo)

RICHMOND, Va. (WWBT) - Folks who are drowning in student loan debt often ask: how on earth can I also save for retirement?

Michael Joyce with the Financial firm Agili says no matter how hard it is, you have to do both at the same time; you can’t ignore one at the expense of the other.

He says you have to look at how much you are going to pay on the student loan over the minimum amount versus how much you are going to put into a retirement account.

“In a retirement account what’s always important to remember is not only are the funds in there not taxed until well into the future, but that money grows. It compounds without a tax drag,” said Joyce.

He adds you shouldn’t don’t leave money on the table. For example, if your company offers a 401K match - take it.

Even if you are just setting aside just one or two percent of your take-home pay in a retirement account, do it. He says every little bit helps.

A financial planner may also be able to help you figure out how you can afford to do both, pay down college debt while saving for your future.

Copyright 2021 WWBT. All rights reserved.

Submit a news tip.

Want NBC12’s top stories in your inbox each morning? Subscribe here.

AdChoices
AdChoices

More from Richmond-Petersburg WWBT

Richmond-Petersburg WWBT
Richmond-Petersburg WWBT
image beaconimage beaconimage beacon