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[quote=Anonymous]So 8:23 and 9:00, this gets at the heart of my question. I love the idea of paying off my loan in 5-6 years. Love it. But at that interest rate, I know it isn't the option that results in the most dollars, given the est rate of return on the market. So in your scenario, if I have $3500 monthly left over after expenses (including 17.5K annually into 401K with match, and 5.5K in IRA), I would:

Put 2K monthly into the market.
Put 1.5K monthly toward loan.

At this rate, I'd pay off the $215,469 in 14 years, 9 mos (so I'd be approx age 54) with total interest paid: $48,947 (if I put 3.5K towards the loan it's paid off in 5 yrs/7 mos with total interest paid $17,929).

And by your numbers, I'd have an additional 115-191K for retirement (vs. 81-120K if I paid off the loan at age 45).

So, if we use median numbers for the market returns (153K in later loan payoff scenario vs 100.5K for earlier loan payoff scenario at 6-8%), there are two possibilities:

Scenario #1: Pay off loan at age 54. Earn approx 153K in market, pay $48,947 in loan interest. Net gain: $104,053.

Scenario #2: Pay off loan at age 45. Earn approx 100.5K in market, pay $17,929 in loan interest. Net gain: $82,571.

Difference between scenario #1 and 2: $21,482.

Is this math correct? Is later loan payoff worth it for a net gain of approx 21.5K?[/quote]

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