Afford Anything Ask Paula: Investing for the Future vs. Paying Down the Past
12 snips
Dec 13, 2023 Topics discussed include the benefits of investing vs paying off debt, tax flexibility in investment strategies, merging financial lives in an international marriage, and choosing the right bank for international travel
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Prioritize Retirement
- Prioritize retirement contributions over car loan payoff.
- Retirement accounts likely offer better long-term growth than 6% loan interest.
Risk Premium Consideration
- A guaranteed 6% return on a car loan payoff is substantial.
- Consider the risk premium required from market returns to justify prioritizing investments.
Simulated Car Payments
- After paying off a car loan, continue the monthly payments.
- Redirect the money to a separate savings account for your next car.