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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 portfoli
by 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 agoI 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.