Quote:
Originally Posted by Nlkko
You guys really advising him to "invest" first before paying off his debt? There is NO guaranteed investment outside of GIC and a Savings Account. You can and may very well lose money investing.
Pay off your debt, invest when you're balance sheet is clean. Ditch the $17,000 car, which by the way, is a depreciating asset.
You are sitting on 55k debt AND paying interest monthly with the power to instantly pay off 70% and enough income to pay off your debt within a year easy. You don't need a 3 year plan.
Be debt-free first and invest only after.
|
this is and isn't true.
if he just plops $22K in the stock market and adds nothing to it, that's a stupidly risky move.
if he's already putting in $500 a month into a wise, diversified (60/40?) portfolio, i'd agree entirely with you as this portfolio will, on average, gain 7% per year.
doing what you suggest is only wise if the person doing it is financially literate, disciplined, and wise. usually this comes at a slightly later stage of life, i find (and that's not a knock on anyone)