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The age old question. How much of your income should be going to debt vs investments. Should it be all or nothing?
The answer depends on a variety of factors, one of which being personal preference. In general, investing should be prioritized above LOW interest debt, particularly if you are young. Here are some suggested cut offs:
Above those cut offs, pay off the debt first!
Why does age matter? With age, your portfolio will have a higher bond allocation and generally low returns. In addition, you want the security that complete debt freedom brings when you move into retirement.
Here are some examples of how the numbers change on the debt vs invest question when looking at high interest vs low interest debt.
With low interest, high dollar student loan debt, your net worth actually comes out higher if you do a...
This episode will definitely inspire you about what is possible for you on your student loan journey!