Student loans (1 Viewer)

[HuskerPAC]

The main problem with not paying extra on debt so you can invest that money is that most people don't actually invest it. They spend it.

I’ll be maxing out 2 more work retirement accounts this year now.

 

[Jim14510]

I’ll be maxing out 2 more work retirement accounts this year now.

If i sat down with 100 people. All of them are paying extra on their low interest debt mortgage, student loan, whatever. I explain instead of putting $1000 per month towards that debt put that $1000 in an investment account. After 5 years you'll increase your net assets by 20k-30k.

Fast forward 5 years and I'd have maybe 5 people with a net benefit of 20-30k as planned. The other 95 people somewhere between break even in net assets than if they'd paid their debt and next to nothing in their investment account.

Numbers don't really matter. Use $100 instead of $1,000 and it's the same thing.

 

[That SOB Van Owen]

If i sat down with 100 people. All of them are paying extra on their low interest debt mortgage, student loan, whatever. I explain instead of putting $1000 per month towards that debt put that $1000 in an investment account. After 5 years you'll increase your net assets by 20k-30k.

Fast forward 5 years and I'd have maybe 5 people with a net benefit of 20-30k as planned. The other 95 people somewhere between break even in net assets than if they'd paid their debt and next to nothing in their investment account.

Numbers don't really matter. Use $100 instead of $1,000 and it's the same thing.

Yes, if you’re going to invest the difference, you have to invest it. Best to set up direct deposit from your paycheck to the investment account.

anyway, I stand by my previous statement that debt = good, especially when you’re young, and especially at current rates. Leverage, leverage, leverage.

 

[HuskerDocCo]

I don’t even want to think of the day when I had my student loan exit interview and saw that number fml lol

 

[Mood4NU]

Wife & I are both under $10 K left With all the talk from the socialists of loan forgiveness . I’m paying minimums until they either shut that down or move forward with it. With no interest, I may skip paying through Jan.