Michael T. Tangorre wrote: >>From: Deanna Schneider [mailto:[EMAIL PROTECTED] >>But, then I married this guy that had school loans and we >>paid those off in one feel swoop. Ah, love. It makes you do >>crazy things. > > > Ouch! The interest rate on school loans is betweeen 2-3.5%... The money you > could have earned on investing the money over 30 or 40 years would have been > way more than the money spent on interest on the school loans. The only > reason I comment on this is that my fiance and I are both well into school > debt, but no other debt. Combined we have about 110K. Our first reaction was > to pay it off as soon as possible, paying about 2K a month in loan payments > to save 9K in interest by paying it off in 5 years instead of 15 or 20. > However, going from a $900 combined payment to $2000 combined payment was a > difference of 1100 per month that could have been invested. Do some > calculations on a Roth IRA and put in the max contirbution per year and see > what the numbers are over 30 years.... WOW!... That 9K in interest is > nothing compared to the 500K you just made over the long haul!
You should be a little clear. You have to compare to the same time period. Basically you have to ask your self, "Can I get a better rate of return on this $1100 then 2-3.5% over the next x years the lone is active." Then you have to PV the money because 500K in 30 years isn't worth 500K today. At present ROR, I'm guessing the numbers are a lot closer then you think. PS not advice. You are smart to make your own decisions. -- 2004 - The year $184M couldn't buy a pennant. Ron Artest: Extremely flawed, very accidental, semi-martyr ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| All-in-one: antivirus, antispam, firewall for your PC and PDA. Buy Trend Micro PC-cillin Internet Security http://www.houseoffusion.com/banners/view.cfm?bannerid=60 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143825 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54