Retirement Savings vs. Debt Repayment - The Best Use of Money

If you’re in your early 20s, you might be struggling with a common financial planning question: Should you be saving money for retirement, or should you first pay off your debts?

The answer to this question could vary depending on your individual circumstance.

Should You Start Saving for Retirement Before Paying Off Student Loans?

Save for Retirement! Andy Smith, Senior Vice President of Financial Planning with Financial Engines says: "You absolutely should be saving as much as you can for as long as you can."

Here's a scenario of Maria & Connor, 27 year olds working at the same company...

Maria immediately started saving $300 a month. Connor started saving $300 a month starting at age 37.  They both saw 6% annual returns  and reinvested all their earnings.

But at age 67, Maria had over $250,000 more in savings than Connor because she saved earlier and could take advantage of the power of compounding interest!

SWIPE UP to read where & how you should invest your retirement savings.