UnThreaded | Threaded | Whole Thread (33) | Ignore Thread Prev | Next
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77556  
Subject: Re: Beginner wants to invest beyond ROTH IRA. He Date: 9/5/2011 9:47 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Answering before having read the thread, so this may be a repeat (or not).....

I do not have a 401k, as I am working freelance.

My only debt are 3 student loans, all at fixed interest rates:

Loan 1: $7600 @ 4.875%
Loan 2: $5900 @ 6.8%
Loan 3: $3700 @ 5.00%

I would like to contribute an additional $200 (or so) monthly

You have an emergency fund, which is very good.

After that, I'd start paying down the loans. Starting with the highest rate first.

My reasoning is two-fold. One, no debt is good, IMHO. Eventually, debt limits your options in your career and life. Two, paying off debt is a "guranteed" return. Investing, even in a sure thing, is not. Look at your highest loan rate, its pretty much at the historical average return of the S&P500. If someone offered you that as a guranteed return for the next 5 years you'd probably take it.

Pay off debt then worry about investing.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (33) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Berkshire Hathaway

Taking Candy From Strangers
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.