How to Invest When You Have Student Loans

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Lauren interviews Kristen Robinson from Fidelity Investments

The Financial Diet blog:
http://www.thefinancialdiet.com

6 steps to ditch debt and still save:
https://www.fidelity.com/mymoney/ditch-debt-and-start-saving

Couples Retirement Study looks at how well couples communicate about their finances:
https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/couples-retirement-fact-sheet.pdf

Simple Budget Checkup tool to see how your budget compares to our 50/15/5 rule of thumb:
https://communications.fidelity.com/pi/calculators/budgetcheckup/

The power of saving 1% more, can make a big difference, especially starting when you’re young.
https://www.fidelity.com/viewpoints/retirement/saving-more-can-go-a-long-way

Facebook: https://www.facebook.com/thefinancialdiet
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43 Comments

  1. What the f*** is she gonna do with $80 a month smh

  2. With that percentage breakdown, what about having a life? how much percent to go out and have fun once a month or get your hair or nails done? I guess we have to deprive ourselves for years. Ugh sucks to be an adult sometimes lol

  3. Also remember that saving 15-20% of your income is what most people do to retire in their 60's. If you want to retire earlier and enjoy your riches while you're young, put away more than the average person

  4. Very good overview of things to consider. Very helpful. Thanks for posting this.

  5. Is there a way to automate your savings if you are a freelancer and get your money from different people at different times and in different amounts each month?

  6. How does 33 dollars at 25 mean 3800 dollars at retirement age?

    If someone retires at 65 (unlikely in this day and age, but…) that leaves us with 40 years for it to grow. That'd need an average annual return of ~12.6%! Where is that coming from? I want to invest in that.

    Retiring at 70 means an average return of 11.12%

    75 is 9.95%.

    A more realistic long-term number of 7% means we have to wait a bit more than 70 years to retire. That means you're not going on that Caribbean cruise until you're 95.

  7. People are walking around with 12% interest on their student loans? That's madness.

  8. that women looks like pure evil

  9. Hi Lauren, this was helpful. My issue is that I don't trust fidelity or other 401K managing companies with my money. A lot of 401Ks vanished as a result of the market crash in 2008 and that was because of unwise and risky investing by the managing firms. Markets are fickle, but firms like Fidelity make money by gambling my hard earned money. How do you get around that?

  10. So do we invest from the 30% portion that is left over?

  11. i was 24 making 12 an hour in nyc in thr middle of a recession. id like to see ways to lower studrnt loan payments without using pay as you earn which can extend the life of the loan and the amount that comes out of pocket

  12. Thank you so much for making this video! I feel really inspired to start back up with saving. when I had my money up into another account automatically after every paycheck, I accumulated over 1k in a few months from an entry level low paying job lol!

  13. wait.. what 25 year old is making 40k please let me know so my poor 29 year old ass can switch careers

  14. I'm looking for retirement and I'm only in my mid-30's. Useful channel! Thanks for sharing your knowledge. 🙂

  15. REALLY helpful. Thank you!

  16. The only one that makes sense while in debt to me is the 401K match. I see what she is saying, but even she doesn't seem to promote much investing with debt. I wouldn't recommend to anyone to invest with significant debt. It's easy to point in how investing helps in the long run, but this is avoiding the rapidness that the debt also grows due to interest rates. That's a BIG deal!

  17. my job doesn't offer a 401k. Where can i go to start a retirement savings account?

  18. Chelsea is a cunt! Thanks to her article calling people with mental illness ASSHOLES she's about to get some new attention. Although, I'm guessing it won't be in the form that she likes. This money whore thinks that people with a mental illness can control their emotions and words during an episode. What controls our emotions and ability to calm down? Our brain does. Mental illness means the brain doesn't work right. It's called an ILLNESS for a reason.

  19. Lauren, you need to stop swiveling so much! Minor details aside, this was soooooo good! Thanks for making such an informative video. I hope TFD can have more guests like this in the future.

  20. What 25 year old is making $40,000 a year!? I am 3 years out of my bachelors and I can barley fine a full time job.

  21. I've got a question about the 15% of income which is here given as a guideline to put away for retirement. Here in Germany you pay about 10% of your brutto income in a compulsory retirement insurance. How much do you spent for that in the US and if you are handeling this very differently – would you still stick with this 15% or would you give a different suggestion? I love your videos by the way – they are fun to watch and at the same time so very helpful

  22. This was a great interview, and very applicable to what I think is the majority of your audience! I love when you guys interview people on the show.

  23. How do you find side jobs?

  24. This was so helpful and informative! What a great guest to put things in perspective!

  25. so I should borrow as much as I possibly can while I'm young to invest to capitalize on the time value of money by this logic? just as I'm spending money on retirement while interest is accruing on my student loans?
    buy on margin. got it.

  26. starting to put money into a savings account for retirement as a 20 year old?! not sure if I agree with that.. does superannuation count?

  27. Great Interview 👍🏻

  28. 1. Very helpful video. 2. Congrats on your upcoming nuptials, Lauren!!

  29. I would also be really interested in learning about how to actually invest things. Where do you even do that?

  30. Can we get a video on handling side jobs like nannying or busking etc that aren't really easy to tax or retire from? obviously everyone wants the 50k a year office job, but how do you handle it when the budget is a lot smaller?

  31. Yet I dream of getting a 40k job a year. I've barely been able to continually break 20k since graduating college and I've worked multiple jobs. I'd prefer to see more on quality resume stuff to help you get job that gives you 40k, because those seem elusive in my neck of the woods.

  32. This was very helpful. Would you be able to compile a list of places with the best IRA or investment benefits?

  33. I get the idea of compartmentalizing your debt and money, and taking steps to make sure you're going to be prepared for your future, but if you have a 30K student loan at 12%, putting an extra 10k into a savings account or other investment at 5% (if you're really lucky) is pretty counter-productive in my opinion. The thing about your employer matching your contribution is obviously a big thing, but other than that it's all about how you personally manage your money. Keeping a basic emergency fund in an okay-interest savings account and then dumping all of the rest of your money into paying off the loan in the long run is going to have you coming off paying less interest. Instead of putting that 15% into a rrsp and having the bank take the difference between that and your loan, why not pay off the loan with it?

  34. This was really informative. Thank you!

  35. The mhmms are really distracting!

  36. Excellent video! It all sounds like very good advice 🙂

  37. I really enjoyed this video and was really happy with the information provided! Thanks TFD!

  38. Thank you very much! This was very helpful!

  39. I found this extremely useful

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