^{By Todd Stankiewicz | CIO, SYKON Capital | Portfolio Manager, Free Markets ETF (FMKT)}

Short Answer

First, congratulations. Paying off student loans is a major milestone. The next step is not the same for everyone. It depends on your debt, cash flow, emergency savings, taxes, retirement benefits, and short-term goals. A good place to start is by asking the next question: what should this freed-up monthly cash flow do for you now?

If you still have high-interest debt, such as credit card balances, that may deserve attention first. If not, the focus usually shifts to building flexibility: emergency savings, retirement contributions, taxable investment accounts, and the right mix of tax buckets. Before simply increasing your 401(k) contribution, consider whether all of your savings should be locked away until retirement age.

The better answer is usually not “do this one thing.” It is to build a priority order. Start with the debt that costs you the most, protect your near-term cash needs, capture any employer match, and then decide how much should go into pre-tax, Roth, taxable, and cash savings. The right decision process can help you turn a paid-off loan into more financial choice, not just another automatic contribution.


About the Author

Todd Stankiewicz | Chief Investment Officer, SYKON Capital

Todd Stankiewicz is the Chief Investment Officer of SYKON Capital, a fee-only registered investment advisor with offices in Westchester County, NY and Jupiter, FL. He is a recurring guest on Fox Business and the Schwab Network, where he discusses markets, portfolio strategy, and investor behavior.

Learn more at www.sykoncapital.com

^{Advisory services are offered through SYKON Capital LLC, a registered investment advisor with the U.S. Securities and Exchange Commission. This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable as of the date of this report. Past performance is not indicative of future returns, and diversification neither assures a profit nor guarantees against loss in a declining market. Investments involve risk and are not guaranteed.}