conversation: User (artiemus_prime): "Hi personal finance! Long time lurker, first time poster. I have been thinking a lot about retirement lately and just wanted some advice. Here are my stats\n\nTake home pay = 4200 (70k pre-tax)\nSavings = 8000\n\nRecurring costs\n- Rent = 1520\n- Utilities = 120\n- Cable + internet = 120\n- Student loans = 651 (~60k left, 40k loan at 5.25% and 20k at 4.75%)\n\nMy work offers two retirement plans (no matching):\n- 401K\n- Roth 401K\n\nCould you please explain to me the pros and cons of each? I've been contributing 2% (I know, I know, this is awful) into the traditional 401K but want to start contributing more. We have these accounts set up through Fidelity, not sure if that makes a difference.\n\nI work for a publicly traded company. One of the perks of working here is the Employee Stock Purchase Program. The ESPP gives you a 15% discount on lowest of the start and end of a 6 month window. Money is taken out post tax and capped at 10% of your salary. Is this worthwhile investing in?\n\nI also have been granted RSUs that vest over a 3 year window. The first third of these will vest in March of this year (~666 stock units after taxes, currently trading at $36.30). I'm thinking of selling some of these and paying off my 20k student loan. Is this a sound thing to do?\n\nYou guys always have such great advice so I'm hoping you can add some clarity to my financial situation."
  Self: "With a year's income worth of student loan debt, I don't care so much about your lack of contributions to an unmatched 401k. I do think that your rent/utilities is too high for your income, though. But at least you don't mention a car payment and sky high insurance payments (*I hope...?*) so that's survivable.\n\nI'd be focused on getting that debt cleared out ASAP. Yes, do the ESPP and set it to quicksell your shares as soon as the period is over. Also sell your RSUs as soon as they vest (https://blog.wealthfront.com/manage-vested-rsus/). Keep in mind those are going to be taxed as bonus income, so you'll be lucky if you see $15k from that.\n\nI'd bulk up your savings to $10k, leave the 401k at 2% for the sake of starting a good habit. Throw everything else at the debt until it's gone, then get on top of saving for retirement."
  