UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: 2old4bs Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Roth or School Loan? Date: 1/26/2004 4:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
My only debt right now is 16,000 in college loans. My question is this. After I condolidate my loans my interest rate will be 2.3% and my payments will be about 100 a month. I feel as though I should only put the minimum 100 in each month expecting to recieve a higher rate of return on my investments

I can tell you that Suze Orman thinks that student loan debt is the only type of debt that's 'good', because it's an investment that you made in yourself!

You didn't mention an emergency fund, do you have one? My only concern with this approach would be that if you ran into a situation where you couldn't work for a while, how would that impact your payments on the student loan? And if you get behind in your payments, does that impact your credit score? (Which would then effect interest rates on mortgages, credit cards, etc.)

I think the Roth is a great idea for you, but I would suggest saving for an emergency fund to cover 6-8 months of expenses (including the student loan monthly payment). The efund money should not be in stocks (because you wouldn't want to have to sell at a time when the market might be low). I have my emergency fund money in short term bonds--Suze Orman suggests a money market account.

That's my 2 cents,
2old



Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

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

2.1: The Labor Pool Problem
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement