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Veskit posted:Got it. So what is the recommended APR on a student loan where you start prioritizing funding your retirement accounts over paying off the debt on a loan? Is there a reasonable number or does it come down to comfort levels at a certain point? I can understand trying to pay off the fed loans immediately, but does he slow down retirement for the 5% APR loan too? This is probably a risk tolerance call. At complete risk aversion it's likely the % that you can get a risk-free investment (CDs are what? ~1% now?). The more risk you're willing to assume (which isn't a big deal if you're young), the closer to say, the 10 year S&P average (or whatever it is you invest in). ~7% Unless you want to buy a house, or some other large purchase in which debt ratio matters. And while loan debt isn't dischargeable, it is easy to manage. Personally I'd go at least to sub 6%.
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Apr 28, 2014 18:12
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| # ¿ May 13, 2024 18:58 |
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