145k in student loans. Am I using the right approach?

http://www.interest.com/401k/news/kind-return-expect-401k-plans/

Please educate yourself about money. This is the one area where you really don't want to rely on someones opinion, not even an educated one (just ask Willie Nelson).

As you can see by the link above, the minimum you will earn in a retirement fund (I recommend stocks over money market - for the long term) is 5%. These are facts.

My plan's growth was just over 9% in 2015, as I have moved to a more secure position. I am already retired. My spouse and I put as much as the law allowed (tax savings must be figured into wealth changes). We are sitting very well because I educated myself about money, I listened to the news, followed politics and made the smart changes before getting burned (in the 2008 debacle). Money, like everything else in the world has cycles. They are not difficult to learn.

As simply as I can put it, whatever you save in a retirement account is going to save you between 10 and 25% of income tax (deferred of course, but retired will probably be in a lower tax bracket). Then it will earn you at least 5% per year. So you can clearly see, retirement savings should take precedent over that 5% loan.

We paid ourselves first. Now we are both retired and sitting well. There are protections against creditors with some retirement plans. This angle should also be considered. Don't think that I am saying one shouldn't pay what's owed. That is not at all what I am saying. However, I did spend 5 years fighting (through lawyers) one (well known) bank because of their mistake. I finally prevailed, but the point is that the world isn't 'fair' so you must prepare for all contingencies. Currently, advisers suggest I flip my 401k to something else, and I have to remind them that I don't want to give up the protections. That shuts most of them up, but some actually believe that bad things won't happen! Greed is fairly prevalent in today's world. You must educate yourself if you don't want to be a victim.

One last note. We (my spouse and I) were both blue collar workers. I expect better from you.

/r/personalfinance Thread