Reply to Put 750$ a month in my mortgage or ETF?

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Reply to "Put 750$ a month in my mortgage or ETF?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It's correct to check the interest rates

[b]ETF generally return 7% a year[/b] so I would invest vs pay the mortgage

If student loans are higher than 7% pay them otherwise invest[/quote]

This is the dumbest financial statement I have heard in a while, and that includes the woman who stopped her husband's retirement  funds to pay for a nanny.  [/quote]

Op here: please tell me more (I am dumb and don’t know what the average ETF return is, although I understand it is the long term trend that matter) [/quote]

No one and absolutely no one knows what a broad stock market ETF will return over some discrete period of time. The average return stock market return since the 1920s is under 8% but you had 20 year periods where it could be half of that or even double that.

Because the market has had fairly healthy return over the last decade I would expect below average returns in the immediate future. But as I said no one knows these things.

The only thing you know is what the interest rate on your debt is. Pay off the high interest debt first. Once you are done paying that put savings in a diversified portfolio of stocks (e.g. ETF) and bonds (e.g. saving accounts, bond etf).

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