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Retirement Investing while Paying Off Student Loans

 

Why would I save for retirement when I am paying off my student loan debt?  This doesn’t make any sense!  Oh yes it does!!!!  While you might think it is better to pay off all of your debt before saving for retirement, think again.  Not only do you need to save regularly for retirement but you also need to keep your life moving forward in spite of your student loan debt.  Here’s how it’s done.  Every year, you have the opportunity to invest $5000 into a Roth IRA.  You might think that this is not a lot of money, but add it up over 40 years and you see the magic.  Bottom line, the most important aspect of this type of savings is that it is protected from bankruptcy. If you are self-employed and go bankruptcy 6 times during your life, ALL OF YOUR RETIREMENT SAVINGS ARE PROTECTED.    This means you can take lots of risks during your lifetime and even have good and bad years of income and file bankruptcy and then end up with a nice protected amount of retirement savings.  This is how smart entrepreneurs protect their family while trying to make a go of their business ideas, many of which fail, but if just one is successful even at the end of it all – it’s all worth it and you have retirement savings as well.

asset protection ira

asset protection ira

Did you know that before April 15th every new year you can contribute to two iras at the same time? For example you can contribute $5000 to the 2012 Ira and $5000 to the 2013 Ira.

Did you know that retirement account contributions to an Ira or other retirement plans are exempt on bankruptcy. However these contributions must vest. 8 months after the contribution 60% has vested. 2 years after the contribution 100% is vested.

For retirement planning this is a great way to get caught up in a year where you have extra money available to invest.

For some one facing bankruptcy filing in the long term this can be a place to put savings and not lose them if above the wildcard exception. Be advised that no bankruptcy attorney will ever advise preferring contributions to retirement accounts over paying creditors but we can advise of the treatment and the applications that others have used.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. CALL 877-GO-GO-NLO (877-464-6656) FOR A FREE BANKRUPTCY CONSULTATION TODAY! SATURDAY APPOINTMENTS ARE AVAILABLE.