4 ms·
If it's a government college loan, the interest rate is like 5%, and mutual funds are giving more than that right now...so technicallly speaking...I don't know
by elliott99 14y ago
If it's a government college loan, the interest rate is like 5%, and mutual funds are giving more than that right now...so technicallly speaking...I don't know how quick I'd say that
- drcode 14y agoWhere is there a mutual fund giving more than 5%?
- adient 14y agoDid you even try to research this yourself? There are many mutual funds that have 20%+ YTD. It's typically recommended to invest before paying off debt like student loans/mortgages because you're likely to make more investing than what you'd save on interest.
- drcode 14y agoYou're talking about historical returns of 20% which have little bearing on future returns. (This is finance 101 stuff, let me know if you need a link that explains it to you) Paying off a 5% interest debt gives a guaranteed return. Sounds like you're the perfect candidate for the next Bernie Madoff... he guaranteed future returns of >10% on his mutual funds :-) That said, a (heavily conditioned) case can be made for investing before paying off loans, as I did in my original comment for this thread.)