debt

[Anonymous No.54852230]

>100k income before tax (with OT)
>29k in debt

Pay off debt first or invest first? Or split the free money towards both?

What do bizcels

[Anonymous No.54852251]

Always
Always

pay off debt first
If you do not pay off debt first you will end up doing it anyway later for more money

Anyone who says otherwise is completely retarded

[Anonymous No.54852293]

>>54852230
>investing while carrying debt
ngmi

[Anonymous No.54852339]

>>54852293

Fuck. I think I can pay it off in like 4 months with no life....am I gonna miss the bull run? What's the consensus for when things really start getting heated up?

[Anonymous No.54852368]

>>54852251

Ok I hear you

[Anonymous No.54852370]

Debt repayment has a 100% rate of return. You should always get out of debt as quickly as possible.

Once you're debt free you free up a ton of cash flow for meaningful investment.

[Anonymous No.54852713]

Gamble it all on shit coins in the hopes of paying it off in one fowl swoop. That's my plan of action

[Anonymous No.54852733]

>>54852370
So why doesn't the mortgage work like this?
Isn't that also debt?

[Anonymous No.54852757]

>>54852733
It does. Just most people don't do it. Buying a home on a 15 year mortgage and paying it off as fast as possible saves you a shit ton in interest. We are planning to pay cash for a house next year and skip the mortgage entirely.

[Anonymous No.54852760]

>>54852230
saying you're 29k in debt tells us nothing. having 29k in debt composed of multiple obligations with double digit interest rates? yeah then obviously pay off the debt.

[Anonymous No.54852838]

>>54852757
What if its a low interest rate like 3% over 30 years?
Should it still be prioritized over investing?

[Anonymous No.54852894]

>>54852838
Depends who you listen to and your philosophy. People tend to pay the minimum and are stuck in debt on their house for 30 years. That isn't something I want. I would never take out a 30 year mortgage in a first place, though. 15 year is the only thing that makes sense if you want to build wealth and be out of debt before you hit your 60s.

[Anonymous No.54852929]

>>54852230
debt first

[Anonymous No.54852966]

>>54852251
This.
The only case where this is bad advice is if you know for certain that hyperinflation is tomorrow, in which case you should do the opposite and borrow as much as possible to buy assets.

But this is an extremely rare occurence.

[Anonymous No.54852985]

>>54852894
I see, this is an argument I get into with my dad as he says I'm wasting money that I could be putting into retirement.
Whereas I'd much prefer to get the peace of mind of no mortgage sooner than later.

[Anonymous No.54853015]

>not taking on more debt so you could invest MORE
ngmi

[Anonymous No.54853052]

>>54852251
but this isn't true. if you don't pay the debt they eventually get you to try to pay half, saving you a bunch of money. and sometimes, they wipe the slate clean !

[Anonymous No.54853053]

>>54852230
depends on the interest rate of the debt...but most likely pay it off. still max your 401k/hsa though because its unlikely the interest on your debt is more than the tax savings

[Anonymous No.54853095]

always pay off debt first, investment is pointless if it's just going to some kike

[Anonymous No.54853201]

>>54852985
If you aren't contributing to retirement to pay down a 3% rate mortgage I would agree with your dad. If you are contributing at least 10% of income (15% preferably) to retirement then I'd throw everything else at the mortgage.

[Anonymous No.54853234]

>>54852838
>>54852757
>>54852757
A dollar is worth more today than tomorrow. If you can afford to put your capital in index funds and a % in bonds averaging 7% return than yes, you should. People don't do that and rely just on a 401k and pension rather than saving on their own.
>We are planning to pay cash for a house next year and skip the mortgage entirely.
Hypothetical if you have 400k and you put 20% down and put 320k in the market with 7% annual return with a 80/20 index fund/bond portfolio with "5%"" inflation (gov fucks up and makes it higher avg or lower, time will tell) for 15 years you would have 882k worth 424k. In 15 years if you used a 20% down15yr loan for 320k it would cost 489k assuming 6.1% interest. So if you put 80k down, and 320k and don't touch it you would get 882-489=393k if you choose to invest immediately and pay mortgage over 15 years. Assuming you average 7%. All speculative
Imo it helps people feel mentally relieved to pay off debt.
I'm retawded and don't know much. This is purely my personal observation.

[Anonymous No.54853260]

>>54853234
Your math is correct, but the mental and emotional relief that comes with owning a paid off house is priceless and hard to describe. Suddenly 100% of your take home pay is yours to do whatever you want with. We already have about 450k in various investments that we will be cashing out to pay for a house. Living in debt is no way to live. The borrower is always slave to the lender.

[Anonymous No.54853431]

>>54852230
Ignore all these idiots who can't manage their money

Depends on the rate in the 29k of debt.

I had about the same, with 18k of it around 2-3% while the other 11k was 6%. I immediately paid off the 6% and am holding the low rate debt. Its student loans and paused right now anyways.

I could pay it all off if I wanted I have plenty in cash but what's the point if the rate is so low. I can make more with that cash in a 4% High Yield Savings

Learn to manage debt. Pay off high rate debt, and for the low low rates, weigh the pros and cons.

>Having Money on hand
>Investing it for more gains than the debt interest
>Pay it off if you have cash laying around and nothing to put it in for some reason

assess your situation. The riches people in the world are "experts" at debt and loan management. That's how we got into this mess to begin with.

[Anonymous No.54854079]

>>54852230
>>54852251

Ackthully if you have any of that debt is maybe bad debt? Charged off? Maybe discover, citi, synchrony gave you interest free. 4 years to pay off?

The specifics matter and the point is specifically don’t be paying interest.

I’d personally try to pay debt aggressively but also be investing aggressively.

[Anonymous No.54854793]

>>54852760

Fair point. 29k for a car loan at a 10.8% interested rate over 72 months

[Anonymous No.54854831]

Crazy how many of you guys are planning for your financial life after you turn 70, which 90% of you never will, imagining its even possible to plan anything that far ahead anyway. I guess it's responsible or whatever but it's also just so absurd I don't know how you guys don't kill yourselves honestly

[Anonymous No.54854854]

>>54854831
If you grew up poor and saw your elderly family live in trailer parks and clip coupons it's pretty easy to convince yourself to stay out of debt and save for retirement.