Quoted: If your financial plan includes paying off your student loans over the course of 30 years, you need a new financial plan.
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I completely disagree. Don't use after tax money to pay off tax deductable debt.
Do you really want to be paying for college in 2035? By then, you'll probably have kids that've gone off to college themselves, gotten married, and had their own children.
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Absolutely! Let's say his payment is $200 per month. That payment will be fixed. It is budgetable, deductable and easy to make. As inflation rises and his income increases, the payment will be even easier to make. The $200 a month in 2035 will probably be less than his cable is today.
By paying off his student loan today, he has a large opportunity cost. Invest today's dollars to take advantage of compound interest. The $200 in extra payment today could be over $10k in 30 years.
I would set aside a $1,500 "emergency fund," and drop the remainder on the principal of whichever loan has the highest interest rate. Get that debt paid off and then start investing. Make interest work for you, not against you. -James
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Student loans and Mortgage are not bad debt. Credit card, car, boat etc debt are bad debt. The emergency fund should be 3 months of expenses.
1. Free money from employeer matched 401k
2. Make an emergency fund
3. Invest in Roth IRA
4. Pay off bad debt
5. Invest for retirement and non-retirement
6. Pay off good debt on a the regular schedule