Best desicion?

[Anonymous]

If you have 100k ( let's say inheritance) and have 100k students loans at the 6% rate, what would you do?
1)pay off the loans
2)invest it

?

[Anonymous]

Anonymous wrote:If you have 100k ( let's say inheritance) and have 100k students loans at the 6% rate, what would you do?
1)pay off the loans
2)invest it

?

I would absolutely pay off a 6% loan.

[Anonymous]

PP here, I just wanted to chime back in how ironic it is that the OP has 100k in student loans.

[Anonymous]

Find me an investment that gives me a scalable, guaranteed, risk-free, post tax 6% return, and I'll give you a lot more than $100k to invest.

[Anonymous]

Yup, pay off the student loans, then start investing with the money you were using to pay them off monthly.

[Anonymous]

Pay off the loans, assuming they're your highest-interest debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you have 100k ( let's say inheritance) and have 100k students loans at the 6% rate, what would you do?
1)pay off the loans
2)invest it

?

I would absolutely pay off a 6% loan.

Yup, no question.

[Anonymous]

Pay off any debt higher than 6%, then pay off the student loans. Then set an automatic withdrawal on your account to invest whatever you were paying monthly into an investment account. Done.

That said, if you don't have an emergency fund, put some of it away for that immediately.

[Anonymous]

Anonymous wrote:Find me an investment that gives me a scalable, guaranteed, risk-free, post tax 6% return, and I'll give you a lot more than $100k to invest.

A 6% investment isn't 6% net this is April for crying out loud! You'd need closer to 9% investment gain

[Anonymous]

my bad you said post tax, Op figure that in when evaluating

[Anonymous]

Anonymous wrote:Pay off any debt higher than 6%, then pay off the student loans. Then set an automatic withdrawal on your account to invest whatever you were paying monthly into an investment account. Done.

That said, if you don't have an emergency fund, put some of it away for that immediately.

I don't have any other debt except mortgage and have emergency fund. Do you think upgrading to better home would be bad idea in this scenario?

[Anonymous]

Pay off student loans, then put the amount you were paying to pay off the loan into an investment account monthly from now on.

Pretend that you never got it to keep you from being tempted to use the increased monthly cashflow for other things.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pay off any debt higher than 6%, then pay off the student loans. Then set an automatic withdrawal on your account to invest whatever you were paying monthly into an investment account. Done.

That said, if you don't have an emergency fund, put some of it away for that immediately.

I don't have any other debt except mortgage and have emergency fund. Do you think upgrading to better home would be bad idea in this scenario?

You want to take a rare chance to get out of 6-figures of not-low-interest debt, and turn it into more debt instead?

Pay off your loans.

[Anonymous]

Mortgage interest rate will be less than 6%. Pay off loan.

[Anonymous]

Pay off loan.