I'm sure similar questions like this have been posed in different forms before but it is always nice to add your own personal touch. First some things about myself to give you a background. I am a 28 year old engineer living in Long Island, NY currently making $105,000 base salary per year. Currently 8% of that is going towards my 401k (with NO employer match). I rent a small 1BR apt for $1100 per month with my fiance and dog.
I am trying to decide between these two options:
a) Pay down all of my student loans to $0.0 and CEASE ALL INVESTING including 401k contributions.
b) Continue my paying cycle as is and continue investing in my work 401k as well as my independent Roth IRA and individual investment accounts
c) Combination of the a & b
So here are the gory details:
Loans
$94,108.56 @ 3.28% (multiple loans 2.75%-4.75% averaged)
$1,299.00 @ 6%
$8,459.26 @ 5.11% (two loans at 4.8% and two loans at 0.33%)
Investments
$44,942 in 401k (Rate of Return is ~9%, ~12% and 28% last 3 years, NO EMPLOYER MATCH)
$6,231 in Roth IRA/Individual Taxable Account (Rate of return ~6%)
There you have it This does not include any checking/savings amount cash. I will be the first to admit I am blessed with a generous salary due to my hard work ethic and where I live. However, I am constantly going back and forth between what is better for me and my family in the long run, paying down all my student loans immediately, or continue investing and paying them down slowly. Things that keep poping up are my good rate of returns, low student loan interest rates, and tax benefits of 401k contributions.
I just recently started tracking my expenses in September so I do not have accurate trending info on this yet but I am really just looking for info on this one topic, not necessarily early retirement.
I am new to the Mustachian way for thinking/living, so any input/comments would be greatly appreciated.
Thanks in advance,
RyanV, P.E.