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?

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

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

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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...

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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.

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