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Subject:  Re: Invest vs School Loans Date:  8/3/2000  5:19 PM
Author:  FractalWalk Number:  130487 of 284468

Some of the questions you ask (drip vs foolish four) are personal preferences. But I would suggest you definitely invest in a ROTH IRA and hold it until you retire. The tax benefits are just phenomenal in the long run.

As far as investing vs payoff school loans, that depends upon the expected rate of return on your investment vs the interest rate on your loans. When you pay off a loan you are basically earning the interest rate of that loan. So if your loan is 8%, you are earning 8% by paying it off. If you think you can beat 8% in the market then you can earn more by doing that. Of course this gets into the whole risk reward decision. Is a definite 8% return better than investing in the market. It depends on how the market does.
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