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Financial Planning / Paying For College


Subject:  Re: Investment Vs. Debt Repayment Date:  1/31/2014  2:29 PM
Author:  WotPeed Number:  8100 of 8484

should I get into investing at all now or should I wait untill my loans are gone?

Nothing wrong with getting your feet wet in the investing world now as long as you're meeting all your other financial obligations first. Your student loans are likely tax deductible so in my opinion there's no rush to pay those off right away. Just keep in mind that any money you use to pay off those loans has a guaranteed return (whatever interest you're saving by paying the balance down) while any money you invest in the market has a theoretical return. It hurts twice as much to lose money on an investment when that money could have paid down debt instead.

Is there anything I should be considering that I didn't mention and am probably in the dark about?

You mention that you have a very high risk appetite. Many people say that before they've experienced their first big loss. It hurts way more to lose 50% of the value of an investment than you think it will. You're young so that's the right time to do risky things but be careful not to over estimate your risk appetite. You'll find out what it really is sooner or later.
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