Don’t overlook retirement when paying down student debt

Getting that first student loan bill can be terrifying.  For many borrowers, it is the precise moment the monopoly money of student loans becomes real debt. For young lawyers, it can lead to an epic panic.  I owe how much?  This can’t be right, who do I need to talk to in order to get this fixed?  Am I going to have to sue somebody?  Will I ever get this paid off? The unmitigated fear gradually leads to discipline and determination.  Borrowers start to make responsible decisions such as making a budget, and putting a plan in place for aggressive repayment.  Unfortunately, these positive steps can also lead to a mistake. Start planning for retirement now At a modest 7% yearly return, $1,000 set aside for retirement at age 25 becomes nearly $15,000 at age 65.  Waiting until age 50 to save that same thousand dollars means that it grows to less than $3,000 by age 65. The math and the time value of money may make sense,…

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