Pay off student loans immediately or wait?

lukep said:
Bottom Line OP: Every such investment question is different and the only good answer takes all of your financial history and options into consideration:

A.K.A., Get a Pro Financial Advisor to do all that work for you and make the right decision. My wife was one years ago and man, you wouldn't believe all the crap they take into consideration before reaching a conclusion... It's really deep shit.
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it would be great to do this, how much do they usually charge though?
 


leadsupplier said:
I am literally debt free besides the student debt. I'm pretty smart with my money, but this is just a tough one as it's all new to me

i have no credit card debt/car payment/house payments, etc..

If i neede to i can probably drop about 10k toward either my student debt, or my 401k, a lot of ppl tell me to invest in my 401k at my age, and i already do, but putting 10k in a roth would probably be well invested as well
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then you are literally not debt free; a house is better debt than student loans. student loans = unsecured debt.
 
leadsupplier said:
it would be great to do this, how much do they usually charge though?
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If they hold your investments, (like your 401k), then nothing at all.

-Pricing varies from firm to firm otherwise. Perhaps $100? I dunno.

Morgan Stanley is the only one I know that knew what they were doing, some out there were total idiots though and were getting tips from Dave Ramsey...

So I'd say first pick the PERSON who seems to really know thier shit, let them handle your 401k, and then ask them about this issue too. They sometimes have options for you that you're not aware of even.
 
leadsupplier said:
i don't know about that advice for the 401k. Every where i read it said investing early goes a long way, especially when you have no other expenses. Like 10K in my first 2 years can turn into like 50K when i retire (don't quote me)

as far as student debt, i'd consider that a "good" debt. besides that, i mean i spend over 30K a year on my credit cards usually, and pay those bitches off immediately
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The price of gas was ~80c/gallon in 1979, and is ~$3/gallon in 2011. That is a 375% increase in just 32 years. So although you might think it's cool that your $10k will be worth ~$50k when you retire, the chances are your $50k will still only be able to buy the equivalent $10k worth of goods - or less.
 
Actually, you can touch your 401k. You can borrow from your 401k up to just about half of your equity, and pay yourself back with interest.

Not sure what your 401k balance is, but you could theoretically borrow the 27k from 401k to pay off your student loan now and then pay your 401k back with interest.
 
Insomniac said:
The price of gas was ~80c/gallon in 1979, and is ~$3/gallon in 2011. That is a 375% increase in just 32 years. So although you might think it's cool that your $10k will be worth ~$50k when you retire, the chances are your $50k will still only be able to buy the equivalent $10k worth of goods - or less.
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gas is probably the worst example in this case, gas is highly inflated. gas prices vary daily.

a can of soda or bottle of water would be a much better comparison. If you want to compare a 401k to inflation, take a look at the inflation percentage per year. is it 10%? I don't think so. so my 401K making 10% a year is beating inflation, the end
 
Insomniac said:
The price of gas was ~80c/gallon in 1979, and is ~$3/gallon in 2011. That is a 375% increase in just 32 years. So although you might think it's cool that your $10k will be worth ~$50k when you retire, the chances are your $50k will still only be able to buy the equivalent $10k worth of goods - or less.
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facepalm_implied.jpg
 
I'd pay those off my studen loan interest rate is about 2% That or just buy some gold and sit on it and pay half price in a few years.
 
You could take online classes and put them on hold. You can pay them off at your own leisure then.
 
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