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Financial Planning / Paying For College
|Subject: Re: Investment Vs. Debt Repayment||Date: 1/31/2014 3:45 PM|
|Author: 1poorguy||Number: 8102 of 8301|
Pay the loans as fast as you can. You might invest and get 8% or higher. But for your "test portfolio", past gains are no guarantee of future returns. The market could slump next week. There's no way to know. You do know that you have an 8% (and a 6.8%) drag on your TODAY. I'd kill that as fast as possible. Once that is done then you can start investing on your own with a long enough horizon to ride out any ups and downs (and there will be ups and downs).
You're already used to living the poor life. Before you ramp up your living standards get those loans paid-off. It will be less painful (and cheaper).
Yes, use the 401K. Good plan.
Just my opinion. I'm not a professional (investor/adviser). Just a former grad student who lived on ramen noodles for several years.
1poorguy (to this day HATES ramen noodles)
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