How to spend 25k?

[Cashflow]

Ok guys,

56k in Student Loans 6.8 interest all federal
I have 25k I put towards the student loans
Should I refi @ SoFi and possibly get 3-4% interest rate and invest the 25K
Currently on 10 year payoff on Student Loans and have about an extra 2K per month I could pay down on student loans or invest

What is the best use of the 25K and about 2K a month?

[ShoulderThingThatGoesUp]

Find out if the refi is an option, then decide.

[boarder42]

same as above. REFI first.  if you get 3-4% then just buy VTSAX with your 25k and pump the extra 2k per month there too. and keep the 10 year pay off

[AJ41]

What kind of returns are you getting on the VTSAX boarder? That's really aggressive investing there.


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[boarder42]

What kind of returns are you getting on the VTSAX boarder? That's really aggressive investing there.


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thats not really aggressive investing.  VTSAX is the total US stock market... you get the returns of the total US stock market.

[marielle]

There's a good chance you won't get a 3-4% interest by refinancing unless your income is very high maybe. I tried to refinance but it would have increased my interest rates.

[AJ41]

What are places that you use you can refinance loans. I'm high income myself and made a thread similar to this. The majority of people said to pay off the loan (39k).

So historically what type of interest have you gotten per year with the VTSAX?



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[Cashflow]

Married Jointly around 120k

[boarder42]

What are places that you use you can refinance loans. I'm high income myself and made a thread similar to this. The majority of people said to pay off the loan (39k).

So historically what type of interest have you gotten per year with the VTSAX?



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see above.  the returns of the us stock market on avg.  is 11% annually thats pretty easy to go look up ... i'm so confused as to WTF you're asking such a simple question for.  if you're asking this question you need to go learn yourself i'd start here

jlcollinsnh.com/stock-series/

also investment/paydown debt order is here.

http://forum.mrmoneymustache.com/investor-alley/investment-order-65299/

have fun learn.  and stop paying down low interest debt. 

[AJ41]

The reason I ask you this "simple" question is because everyone was telling me in a thread to pay off this debt at 6.8% rather then invest that same money into a fund that returns annually 11%. That's why I was asking to clarify.


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[boarder42]

The reason I ask you this "simple" question is because everyone was telling me in a thread to pay off this debt at 6.8% rather then invest that same money into a fund that returns annually 11%. That's why I was asking to clarify.


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6.8% is borderline territory if you see above i said if you get it to 3-4% i wouldnt pay it off.  if its SL debt at 6.8% today i would say thats 50/50.  if YOU dont understand why YOU need to educate yourself and make your own educated decision.  the 50/50 would have to be after you max all tax advantaged accounts, if those arent maxed its still a no brainer to max those first.

[Cashflow]

Great posts and loved the links border42

[AJ41]

That's why we are on this site. To EDUCATE ourselves. So thanks for your insight.


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[boarder42]

That's why we are on this site. To EDUCATE ourselves. So thanks for your insight.


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sounds to me like you asked a question earlier ... didnt educate yourself and blindly started down a path of what the majority said. unless i'm misinterpretting you not understanding market returns.

[AJ41]

Not necessarily. You actually answered my question and pointed me in a proper direction. Saved me a lot of time and was really helpful. People will look at this thread and feel the same way. Your actually derailing this thread now, however. These posts going back in forth aren't helpful to this topic. You posted your link and EDUCATED US in the original post. So let's leave it at that sir.


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