Question
While in school, and working part time Na Yeon earned about $10,000 per year. For the past two years, she has managed to put $1,000
While in school, and working part time Na Yeon earned about $10,000 per year. For the past two years, she has managed to put $1,000 each year into an IRA. Na Yeon owes $35,000 in student loans on which she is obliged now to begin making payments. Her new job will pay $55,000. Na Yeon may begin participating in her employer's 401 k retirement plan immediately, and she can contribute up to 8 percent of her salary to the plan. Her employer will contribute 1/2 of 1 percent for every 1 percent that Na Yeon contributes."
How would you recommend that Na Yeon manage her IRA account? What are her options for paying off her student loans and building her 401 k plan?
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