That is the question. ‘Tis nobler to invest or pay down my debt?

The speed at which one pays off their student loans is an increasingly common personal finance question, and it’s made even more complicated by the uncertainty of policy in Washington.

Unfortunately, like a lot in life, the answer to this question is, “it depends.” A common rule of thumb is that it’s dependent on your loan’s interest rate.

Conservatively, the annual stock market returns are 6%. If your loan’s interest rate is over 6%, it might be advisable to pay off your loan aggressively. If it’s under 6%, it might make more sense just to pay the premium and invest leftover money.

Like everything in life, everyone’s situation is different, and personal finance questions are rarely straightforward. Call us today at 513-563-PLAN (7526) or book online here to schedule an appointment. We’ll discuss any questions you have about paying off your loans and putting yourself on a path toward financial freedom.

Regards,
Nikki Earley, CFP®