Answered before asked.chipperd wrote:answer these questions first: do you get to write off interest paid on student loan?
by Khanmots » Sat Dec 22, 2012 9:04 am
How much do you personally value liquidity?
How much do you personally dislike debt?
And questions for us... are you taking advantage of all available tax-advantaged space now, and what size is your EF?
Rodc wrote:To my mind the biggest missing piece of information is what sort of emergency fund do you have.
In a recent thread, mildred66 wrote:Emergency funds: 3-6 Months (in i-bonds and ING Direct)
Portfolio Size: Low six-figures.
20.4% Fidelity Spartan Total Market Index Inv (FSGUX) (Expense Ratio (ER): 0.24%)
16.3% Spartan Global Ex US Index FD Investor Cl (FSTMX) (ER: 0.10%)
10.3% Yacktman Fund (YACKX) (ER: 0.80%)
southwest_stacker wrote:It is hard to describe how being 100% debt free feels. There is no math to describe it. We have always been smart with debt and did ok but once we paid everything off it was like life changed. It is hard to describe but it is definitely worth it. It is amazing how fast you can build up money once you have zero payments.
mildred66 wrote:I'm getting a windfall next year that would pay off all my student loans, which are at 2.5% interest. I've heard arguments that this rate is so low, I should pay it off as slowly as possible (e.g., inflation), and invest the windfall somewhere else.
southwest_stacker wrote:It is hard to describe how being 100% debt free feels.
southwest_stacker wrote:The other thing I will add is the 2.5% you pay on your debt is guaranteed.You WILL pay that. What you earn on your investments is a crap shoot. You might make ten percent you might lose ten percent.
bsteiner wrote:In determing your asset allocation, keep in mind that the loan is the equivalent of being short a bond.
mildred66 wrote:Thanks for all the thoughtful responses everyone! Really helpful.