Reply to How Much Would You Spend on a House?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I love how everyone who claims it is better to invest $40K instead of paying off a $40K student loan starts with the assumption that someone has $40K sitting around.  For most of us, it takes time to accumulate such a sum, so it isn't a simple 2% vs 8%.   [/quote]

I only have a few friends who admit to having student loans.  When the topic comes up they love to say how "well you can earn X in the market."   However I seriously doubt that any of them actually have that amount of money available to invest.  I doubt they invest outside of their retirement accounts.  It's just something they say to make themselves feel better about having debt.  [/quote]

Agreed. I'm a mortgage underwriter and i do a cavity search on people's finances. High earners dont carry around student loan debt. Period. I see alot of people making in the 300-400k range spending ALL their money and only having 401k as investments. And sadly, from what i see, i dont lump the 300-400k into high earners mainly [b]because the manage their money pretty poorly. [/b]Lack of investing and carrying around silly loans like student loans and car loans.[/quote]

What other mistakes do you see?  We fall in the 300-400k range and I feel like we also spend all of our money but we do invest around 130k a year plus in retirement (~80k in 401ks plus ~50k stock).   Besides that we have a 15 year mortgage.  However, the rest of our money is going to graduate school so we don't take any student loans.  [/quote]

How are you investing 80k in 401k? Max contribution is 18.5/pp.

Are YOU investing 50k in stock or are you getting RSU/stock bonuses from your company?

[/quote]

401k #1:
Personal contribution: 18k
Match: 13k

Retirement fund #1 (defined pension that can be rolled into 401k if I leave)
Co contribution: 17k

401k #2
Personal contribution: 18k
Match: 12k

Totals 78k.  The stock is in the form of a stock bonus from my company.  [/quote]

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