<prompt> Human: I am 24, engineer with stable job, gross 52k. Company matches half up to 6 of 401k, fully vested immediately. I have 19k in 401k and 6k in savings. My student loans started at 20k at 9.775 but since graduating 2 years ago I am down to 10k. I put 400-600 a month towards loans as well at 500 towards savings. I know my return on my 401k is lower than my interest rate but I am wondering about taxes and the potential effects in the future of more than cutting my 401k in half. I would really like to put all my student loan payments in savings to build up a better emergency fund and eventually increase my investments but I feel like the student loan payments are holding me back. I also have a mortgage 1250 month shared with my fiancé 50k gross also engineer. My parents gave the down payment money and I am slowly furnishing it but its a 100 year old house so I want at least another 10k cash for house emergency funds.  <response>: No no no. A few things: Any money taken out of your 401k is taken at your tax rate 10. So youre saying your interest rate on your loans is 35? I think not If your 401k is not beating the interest in a loan then you need to look at what youve put your 401k funds into. The market has been doing pretty well these past 3-4 years so you should be up quite a bit eg from 2011 to now the market is up more than 40.I understand the tortoise route sucks but the tortoise beat the hare. Stick with the 400-600 towards loans and it will be gone before you know it. Then when you retire and this 19k has turned into 600k youll be very happy you didnt take the hare route. 