Avoid debt or invest?

[Murse]

I believe I have a pretty good grasp on what I should do but I wanted to get others opinions to make sure I am on the right track. I have a year left until I am an RN, then I will be getting my BSN online which I will likely pay cash for seeing as it's around 10k. After getting my RN, I intend to work for 2 years (while getting my BSN) then I want to attend grad school. My question is during my 2 years working, what is my best bet for maximizing net worth in the long run? Do I simply save all of the money in a bank account to keep it safe and avoid debt? Do I invest in a 401k up to employer match and max out my roth both years and try to minimize educational debt? After grad school the pay jump should go from around 60-70k/year to 100-120k/year. The cost of grad school would be 50-60k for tuition, plus living expenses, plus the opportunity cost of having to cut down or possibly eliminate working for 2 years while attending school.

I am not afraid of debt, feel I would love the new role and enjoy practicing until a more traditional retirement date.

[Cheddar Stacker]

I like debt but that's just me. See link below for a lot of discussion:
http://forum.mrmoneymustache.com/ask-a-mustachian/let's-settle-this-with-a-vote-invest-or-payoff-debts/

In regards to your specific situation, I would do everything you can to keep expenses low, particularly tuition. If you NEED to pay $50-60K for tuition to earn that kind of money then I guess it's worthwhile, just see what you can do to reduce any unnecessary costs.

I would pay down any debts that have excessive interest rates that aren't deferred while in school. Other than that, I would accumulate as much savings as possible and invest it aggressively. Once you finish school, analyze the debts, pay off the highest interest rate ones first, then once you get into the 4-6% range you have to evaluate where you want to put your money. I would put it in the stock market rather than pay down any debt that's under 5% interest.

401k's are great, but access to pay down debts would be tough. If you can do 401k's and taxable accounts I would do that in your situation. If you can't do both, taxable might be better for you since you are building up so much debt right now. Once you start earning $120K you need to max out your 401k, and if possible max an IRA as well but you may be over the limits. This is your best bet for a quick accumulation of funds.

[Murse]

Thanks for the response, I actually read that thread and considered posting my question in there but did not want the original post to be off topic. The 50-60k is the only program within my state, I can look at other options (online) but will likely weigh in favor of my state school, possibly a school from neighboring state.