Question

What would you do in my position? Pay off student loans as fast as possible or look to buy a 3rd property? I have $79k in student loans at a 3. 5% interest rate. Placing $1, 800/month into student loans, pay off is 4. 5 months from now. Maxing my 401k and putting $1500 investments (mutual funds, Fundrise). Can’t contribute to Traditional IRA and get the tax benefits, but can do a Roth conversation. We are moving into a new property and are going to rent out our first. My plan is to stay the course on student loans and invest elsewhere, but curious if you would pay off loans quicker?  

Answer 1

Dude, its a no brainer. Lose the debt P. S. dont listen to eric e. thats horrible advice

Comments

@endive9 "Horrible" is a little harsh.  

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Im a bit old school. It may he harsh but its accurate

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Eh, the only regret I have about my past financial decisions other than not saving earlier is paying off a few student loans. My monthly payment is a minimal enough amount that I was better off just leaving it for now and increasing my savings/investments to quicker meet my other financial goals.  

Answer 2

4. 5 months or years? I have a similar amount and am hoping to get it done on 3-4 years and then reevaluate the extra $2k+/mo. I am not so much into real estate at the moment though. We do own but that's about it. I also do fundrise and other investments.  

Comments

Years. Sorry

Answer 3

Housing market is too hot right now to buy another property in lieu of eliminating debt. If prices were at the bottom, maybe I’d make that trade. But not when houses are overpriced and you’re carrying that much debt.  

Answer 4

I would stay the course on the student loans and build cash for an opportunity. I've aggressively paid down debt in the past only to have an opportunity come along that I have then go deeper into debt to take advantage of. 3. 5% interest is too low to worry about, especially if you are near the end of the term. You owe about 100k in student loans? It seems like a lot but given your other metrics I would say build up a cash reserve of $100k then pay down debt if there is no other place to invest the money. These are good problems to have. Good job!  

Answer 5

Advice about eggs and baskets comes to mind - pay down some of your debt, keep some cash reserves and invest some

Answer 6

Age vs risk evaluation with long-term, medium-term and short-term goals in mind. Yeah, reduce as much debt as you can.  

Answer 7

There’s nothing better than becoming debt free. it opens the doors to many more opportunities.  

Answer 8

Pay off the debt