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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Jacobi on January 27, 2018, 01:02:44 PM

Title: Loan vs Taxable Acct vs eFund
Post by: Jacobi on January 27, 2018, 01:02:44 PM

Current situation:

- Maxing out retirement accts
- $10,000 in savings account for emergency fund (=about 5 months of expenses)
- $6,000 in student loans remaining at 4% interest

Should I:
a) Sacrifice emergency fund to be done with the loan
b) Keep the loan at minimum monthly payment and use some of emergency fund to start investing in a taxable account
c) Keep both the loan and the emergency fund, and slowly start investing with future income

Would love your input!

Title: Re: Loan vs Taxable Acct vs eFund
Post by: MDM on January 27, 2018, 02:33:19 PM

Have you done all (that you can) for steps 0-6 of Investment Order (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153)?

If not, go forth and do! :)

If so, it's up to you whether to do steps 7 and 8 in that order or flip them.  The deductibility of your SL interest (or not) may have a bearing.