Money Guy Show What Counts as High-Interest Debt?
7 snips
Nov 22, 2023 Exploring high-interest debt and its relationship to education, mortgages, and investment opportunities. Maximizing the potential of HSAs and balancing financial goals. Finding purpose in retirement and the importance of passion. Discussion on saving for future expenses and prioritizing financial decisions.
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Student Loan Interest Rate Targets by Age
- Prioritize paying off student loans with interest rates above 6% in your 20s, 5% in your 30s, and 4% in your 40s.
- Aim to have student loans paid off by your 50s to benefit from the return on investment from your education.
Asset Types and Debt
- Education and homes are different types of assets; education is valuable but can't be sold like a house.
- Consider the asset type when assessing high vs. low-interest debt, as even low-interest consumer debt can be bad.
HSA Tracking
- Track HSA expenses in a spreadsheet or digital folder, noting dates, providers, amounts, and descriptions.
- Keep records of medical bills (photos or scans) to substantiate claims if requested by the IRS, simplifying future reimbursements.