I’ve got about $1K to play with every month — should I pay off my student loans or start investing for growth?

Core Insights - The article discusses the financial decision-making process of an individual, Rob, who is weighing the options between paying off student loan debt and investing for wealth accumulation [1][3]. Group 1: Financial Situation - Rob has $25,000 in student loan debt at a 5% interest rate with 10 years remaining on the loan [1]. - He has recently received a promotion that provides him with an additional $1,000 in disposable income each month [1]. Group 2: Employer Retirement Match - It is emphasized that taking advantage of the employer's 401(k) match program should be a priority, as it represents free money that compounds immediately [2]. - Employees are recommended to contribute at least as much to their 401(k) as the maximum company match amount, typically around 6% of their salary [2]. Group 3: Debt vs. Investment - The decision hinges on comparing the cost of paying off the student loan against the potential returns from investments [3]. - Eligible borrowers can deduct up to $2,500 of student loan interest, which lowers the effective cost of the loan [3]. Group 4: Potential Outcomes - If Rob focuses solely on paying off his student debt with an extra $1,000 monthly, he could be debt-free in less than two years, but would miss out on potential investment returns during that time [4]. - Alternatively, Rob could invest up to $1,200 per month (including the employer match) while making regular payments on the loan, which could yield returns but would be affected by the existing debt [5].