Is it wrong to fund retirement and investments while I still have student loan debt?
Posted by admin on 3 Sep 2008 12:13 pm. Filed under Personal Finance.
Rob A asked:
I have student loan debt with pretty low interest rates (5% and 3% respectively). Is it better to put extra money toward paying off the student loans quicker or putting that extra money into an IRA and/or good mutual funds which would ideally earn a higher interest rates than the loans?
I have student loan debt with pretty low interest rates (5% and 3% respectively). Is it better to put extra money toward paying off the student loans quicker or putting that extra money into an IRA and/or good mutual funds which would ideally earn a higher interest rates than the loans?
On September 5th, 2008 at 12:34 am
If your student loan rate is low enough (and yours is) this is a good idea. Even better if you sign up for a 401K with a match by your employer.
On September 5th, 2008 at 3:59 pm
Depends………what is the intrest rate on your student loan….what is the return on your investments….
On September 7th, 2008 at 4:21 pm
Sounds like you can make money investing – more than you are paying out – espcially if you have a company match for your funds.
Still, a lot depends on your job situation. If you have any risk there, you may be better off plowing all your money into those loans and paing them off. That way if you lose your job, you don’t worry about the debts.
On September 8th, 2008 at 12:18 pm
try never to pay off those debts
On September 11th, 2008 at 12:21 am
Hi,
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