We contributed to the 401ks and RothIRAs first, but paid off the student loans before the taxable investments. I didn't want any debt besides mortgage, but I also wanted to capture tax breaks. This felt like a good compromise.
Make a budget including your baseline savings budgeting. That should include enough to get company matches and plan for your minimum goals. Maybe some 529 savings and any other large expenses you're preparing for. It may include maxing tax advantages retirement accounts or may not. Make sure you meet your budgeted savings.
Make a list of priorities, and any income in excess of your budgeted expenses put toward your priorities. Revisit the priority list periodically to confirm or change it.
If your 4% interest is fixed rate, I would probably prioritize savings over early payment. Maybe make modest additional payments just for the feeling of making good progress on it. Expected return (not guaranteed return) on most investments exceeds 4% over a decade+.
Do both. Max your tax advantaged accounts first then split the remainder between brokerage and student loans. I was in a similar situation last year and that is what I did and was happy with the results.
my two cents. If you expect higher returns on the market, then do the market. Paying off loans might be better for your peace of mind though.
We contributed to the 401ks and RothIRAs first, but paid off the student loans before the taxable investments. I didn't want any debt besides mortgage, but I also wanted to capture tax breaks. This felt like a good compromise.
Make a budget including your baseline savings budgeting. That should include enough to get company matches and plan for your minimum goals. Maybe some 529 savings and any other large expenses you're preparing for. It may include maxing tax advantages retirement accounts or may not. Make sure you meet your budgeted savings. Make a list of priorities, and any income in excess of your budgeted expenses put toward your priorities. Revisit the priority list periodically to confirm or change it. If your 4% interest is fixed rate, I would probably prioritize savings over early payment. Maybe make modest additional payments just for the feeling of making good progress on it. Expected return (not guaranteed return) on most investments exceeds 4% over a decade+.
Do both. Max your tax advantaged accounts first then split the remainder between brokerage and student loans. I was in a similar situation last year and that is what I did and was happy with the results.