Comments on: How To Make Wise Investment Choices

By: B’Cast News Wednesday (TIME) « ucetugimi

B’Cast News Wednesday (TIME) « ucetugimi — Sat, 14 Jan 2012 18:12:30 +0000

[...] drosselmeyer drosselmeyer pacific standard time local time when is daylight savings 2011 what time is it cain gingrich debate Share this:TwitterFacebookLike this:LikeBe the first to like this post. Categories Uncategorized [...]

By: Daniel

Daniel — Thu, 12 Nov 2009 18:36:43 +0000

Thanks. I'm still learning, but I appreciate the advice. I never thought about the emergency situation, and while I hope I won't have to worry about it, it's something to think about. I don't like the idea of having debt hanging over my head for longer, but as long as I'm beating the rate, I can't complain. I think I'm going to start investing.

Do you have any suggestions about where to invest? Sharebuilder? Anything with a bonus just sweetens the deal!

By: Economiser

Economiser — Tue, 10 Nov 2009 22:48:49 +0000

Thanks for running this blog. It's a good idea to direct financial advice to people in their 20s. I wish I had started getting involved a little bit younger (now I'm late-20s).

Anyway, just wanted to chime in to say that I agree with Daniel. I'm retaining student loans at interest rates between 2.5% and 5% despite having the cash flow to pre-pay much of the principal. My rationale is that at these low interest rates I'd rather have investable capital, and that over the long term I think I can beat those rates of return. Also, you can't claw back money you use to pre-pay loans, so it's nice to have a cash buffer in case of job loss or unforeseen expenses.

By: 20smoney

20smoney — Fri, 06 Nov 2009 17:23:52 +0000

I know what you're saying and you're right. I used to think the exact same way but I've slightly changes my views just in the case that I like to eliminate debts and gain assets. Sure you are probably fine since the rate is so low.

By: Daniel

Daniel — Fri, 06 Nov 2009 14:54:09 +0000

Really? After considering the tax effects of student loans, my effective interest rate is less than 2.5%. Even a very conservative portfolio would allow me to earn a better interest rate. Knowing that I'll come out ahead by investing money appeals to me, and putting a steady amount of money in investments may be good for me vs. waiting 5 years.

By: 20smoney

20smoney — Fri, 06 Nov 2009 03:20:56 +0000

For me personally, I'd prob try and kill of my student loans fast after I have a least some savings for "emergencies". If you have a 401k where you can get company matching, i'd contribute as much as I can to get matching then everything else towards the loans.

Getting rid of debt also comes with a psychological boost!

By: Daniel

Daniel — Thu, 05 Nov 2009 17:57:06 +0000

"Always clear your debts before putting money into investments"

Does this include student loans? If they're at 3.5%, should I be aggressively paying them off? Or contribution $5,000 to my Roth IRA? Or investing for the medium-term?