You can consider investing for retirement if you had all or part of your student loans forgiven.
President Joe Biden canceled $10,000 in student loan debt for borrowers earning less than $125,000, and $20,000 if they received Pell grants in college.
If you’re one of the around 11.8 million people eligible for this cancellation, you may find you now have some extra cash each month. Here are some suggestions for what you can do with that surplus.For example, a 25-year-old investing $1,000 every year for 10 years, then $2,000 every year for 10 years, would have $160,000 at age 65, assuming a 6% rate of return, according to Her Money.
For example, a 25-year-old investing $1,000 every year for 10 years, then $2,000 every year for 10 years, would have $160,000 at age 65, assuming a 6% rate of return, according to Her Money.If you’re looking to buy a house, you could direct the bulk of your excess cash to a home fund and still contribute a few percentage points to your retirement account.
If you aren’t able to contribute to both goals at the same time, contribute to the shorter-term priority you’d like to accomplish, and make a plan to contribute to the other when you get other extra income.
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