Do I pay off my student loans or invest?
It depends… What interest rate is your debt and how much is your return rate if you invested.
From the macro sense if your rate of return from investing is higher than the rate of interest you pay to your debt servicer then you should invest. Duh. It’s simple. If you don’t get that then that’s what’s coaching for.
Sophisticated investors are able to make 30%+ annual returns with simple rental property (More info – https://simplepassivecashflow.com/returns/). The right choice there is… Invest! What are you waiting for?
Beware your problem might be lazy equity (SimplePassiveCashflow.com/roe) and the opportunity costs are eating you alive. Oh, the cost of ignorance!
All too often I just see this “student debt” or “debt” as a really lame excuse not to get started.
Below are a few affiliate links to loan consolidation companies that can help simplify your debt payments and get your focused on making more money instead of paying off debt.
I tell people you want to minimize your money paid upfront and put money into investing so you want to structure your payments to be more drawn out. Don’t worry too much about the interest rate. Loan consolidation also makes things a little easier because time should be spent on more meaningful things than sitting in front of a computer getting a handle on this stuff. This concept was discussed on Podcast #60 – #LaneHack – Lease Don’t Buy, Push money into the future and invest – https://simplepassivecashflow.com/podcast60-lanehack-lease-dont-buy-push-money-future-invest
|ELFI||$100 back to you|
|SOFI||$300 back to you|
|Lend Key||$250 back to you|
|Splash Financial||$250 back to you|
|Laurel Road||$200 back to you|
Feel free to share with that young guy at the office who is buried with student debt and looking down the barrel of a 40-year career.