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Isn't this effectively the wrong strategy though? For a portion of my loans I would earn more investing and paying the minimum amount than I would paying them o

• hkmurakami 9y ago
  Depends on the spread between the interest on your loans, the expected returns on your investments, and the risk of said investments. A 1% spread vs a portfolio of 100% equities might mean that the volatility compels you to opt to pay back your loans.
  • sopooneo 9y ago
    I would add that it also hugely depends on what affect being in debt has on your behavior and spending habits. For many irrational people (such as myself) being free and clear makes me much more defensive of my savings. Whereas if I'm on the hook to anyone, I feel a bit enslaved and say "screw it" way more often.
• greyskull 9y ago
  > Isn't this effectively the wrong strategy though? There's no "right" strategy though, since everyone has different situations and priorities. I would have had no problem keeping my low-rate student loans while investing the extra, but I chose to burn them down quickly for the peace of mind of being debt free.
• bane 9y ago
  It can be. It's not really point of strategy more than a personal preference. I just really really don't like servicing debt. On the flip side I get more liquid cash and more "fuck this, I quit" job flexibility which is basically what I'm buying.