I pay over $800 per month on my student loan to satisfy it in 8 years. Should I cut the payment to maybe $500 and take the difference and invest in a mutual fund? I have a 401k at work and a Roth IRA. I'm interested in your take on this. Thanks. CardKid
Will the mutual fund pay more interest to you than you are paying on your student loan? (I have no idea what mutual funds pay, so please forgive my ignorance.) If not, then it would make more sense to just pay off the loan. If it were me, I'd want that loan paid off as quickly as possible. But that's just me. If you know you can turn a profit by investing, then go for it!
Previous performance for the fund was in the high teens. My student loan is only 7%. But, if I cut my loan payment, I end up paying more interest. That's for sure. However, I have no idea how the fund will perform in the future. CardKid
You just answered your own question. Bird in hand is worth more than 2 in the bush. Only risk takers like me would opt for investing borrowed money. www.creditsense.com
