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URL:  http://boards.fool.com/greetings-tmcderm-and-welcome-you-wrote-10756947.aspx

Subject:  Re: A Roth IRA for my Student Loan Debt? Date:  4/11/1999  11:01 AM
Author:  TMFPixy Number:  9854 of 75383

Greetings, Tmcderm, and welcome. You wrote:

<<I owe $25,000 on my student loan that currently has a 7.5% interest rate. This rate can vary between 7.5-8.5% based on the 7/1 annual 91 day treasury bill. The loan is too old and my AGI is too high to get any interest deduction on my tax returns. I also max out my pretax 401k contributions at work.

So,...will the money I invest in a Roth IRA in the upcoming years, if ir grows with 10+% return be a viable investment to help pay off my student loan moe 'foolishly' than just making straight payments to the borrower?

2)Do you recommend another investment account outside the Roth IRA (perhaps an index fund), even though these gains are taxable, instead of making double payments to my student loan?>>


I assume you are asking whether or not you should pay off the loan or use the money to invest instead. Reasonable arguments may be presented to support both sides. Me, I'd rather rid myself of that debt. Then I would use the monthly payments I had been making to do so in an investment starting with a Roth IRA.

Regards..Pixy
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