No. of Recommendations: 0
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?
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.