Simply Money: Pay student loan first or fund 401(k)? - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

Simply Money: Pay student loan or fund 401(k)?

Nathan Bachrach Nathan Bachrach
CINCINNATI, OH (FOX19) -

FOX19 Financial News expert Nathan Bachrach stopped by the FOX19 Morning News Thursday for our weekly Simply Money segment.

Question: "I'm working full-time as I earn my doctorate. I have $100,000 in student loan debt. Should I focus on paying that down or add to my 401 (k)?"

Nathan: "I'd recommend you start funding your 401 (k), particularly if your employer is offering a match.  You also need to make sure you have an emergency fund. Assuming you don't have a lot of high-interest credit card debt, you can then start focusing on paying off those loans. If you do, send in extra money, make sure you make it clear that you want it applied to the principal of the loan." 

Question: "I'm 64 and retired. I collect Social Security (without taxes taken out) and a pension (no taxes taken out.) I have a yearly income of $23,000 and my wife doesn't work. Do I need to file a tax return?"

Nathan: "We talked to our simply money tax expert, Al Pearlman, to answer your question. He said that it depends on a few things. First, you don't say if the $23,000 of income includes Social Security. If you and your wife are both under age 65, you file jointly, and you have a gross income of at least $20,000 not counting Social Security, then yes, you need to file a return. You can find more information in the 1040 instructions on the IRS website at www.irs.gov. "

Nathan's tip of the day

Nathan: "Check out a mobile app called "check." It offers real-time alerts about bills that are due, overdrafts and big or unusual purchases that might be fraud.

Copyright 2014 WXIX. All rights reserved.

  • Trending StoriesTrending StoriesMore>>

  • McDonald's customers sue over paying for cheese on burgers

    McDonald's customers sue over paying for cheese on burgers

    Sunday, May 27 2018 6:35 AM EDT2018-05-27 10:35:01 GMT
    Sunday, May 27 2018 6:35 AM EDT2018-05-27 10:35:01 GMT
    The plantiffs claim McDonald's has been overcharging them because they have been paying for cheese they didn't want nor receive. (Source: Flickr)The plantiffs claim McDonald's has been overcharging them because they have been paying for cheese they didn't want nor receive. (Source: Flickr)

    The plaintiffs claim McDonald's has been "unjustly enriched" because customers have been paying for cheese they don't want.

    More >>

    The plaintiffs claim McDonald's has been "unjustly enriched" because customers have been paying for cheese they don't want.

    More >>
  • Grieving couple unable to cremate stillborn, conjoined infants due to NC law

    Grieving couple unable to cremate stillborn, conjoined infants due to NC law

    Sunday, May 27 2018 2:24 AM EDT2018-05-27 06:24:37 GMT
    Sunday, May 27 2018 2:24 AM EDT2018-05-27 06:24:37 GMT
    A North Carolina law on cremation procedures forbids the cremation of more than one person within the same cremation chamber. (Source: WRAL/CNN)A North Carolina law on cremation procedures forbids the cremation of more than one person within the same cremation chamber. (Source: WRAL/CNN)

    A North Carolina law on cremation procedures forbids the cremation of more than one person within the same cremation chamber.

    More >>

    A North Carolina law on cremation procedures forbids the cremation of more than one person within the same cremation chamber.

    More >>
  • Police release body cam footage of I-95 shooting death

    Police release body cam footage of I-95 shooting death

    Friday, May 25 2018 11:21 PM EDT2018-05-26 03:21:37 GMT
    Marcus-David Peters was shot and killed by a Richmond police officer on Monday, May 14. (Source: Richmond Police Department)Marcus-David Peters was shot and killed by a Richmond police officer on Monday, May 14. (Source: Richmond Police Department)

    The Richmond Police Department released body camera and surveillance camera footage on Friday of the shooting death of Marcus-David Peters.

    More >>

    The Richmond Police Department released body camera and surveillance camera footage on Friday of the shooting death of Marcus-David Peters.

    More >>
Powered by Frankly