Pay School Loans Or Invest?

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Comments

1. John you are awesome! People want to beat around the bush, but you get to the point and tell it like it is! You rock!
2. I'd be in favor of paying off the school debt here as well. I know SO MANY of my peers have 30k+ in school debt like 5-10 years out of school and it's absolutely ruining their lives.
3. Nice! I'm graduating soon and I was going to ask you this exact question. Thanks a ton for the advice.
4. My student loan interest is 1,5 percent. I've invested the money in stock funds that dont pay dividens, so I pay taxes only when I take the money out. My return for last year was 9 percent. Of course it is not going to be that good return every year but 1,5 percent is pretty easy to beat. If my interest would be close to 5 i would have to think this over again.
5. I will never forget the day I walked into my bank, paid off my mortgage and asked them to close the account (redraws are big in Australia). It was the first time I felt I felt like a free man. My job became less important and I looked at riskier investments and even looked at being a freelancer. You can take a lot of hits being debt free.
6. Great video
7. Hello. I wanted to ask about what you would reccommend to do if, say, you live in a country where tuition is very good yet free, and all school expenses are covered by a scholarship, one that even allows you to study in a different place you would like to. What degree to choose between computer science, programming or software development?
8. The market is at a record high right now. The question should be, pay off your student loans, or save money to invest when the market has a correction in the next 6-24 months? I'd just pay them off so they aren't having over you.
9. one note to add is that he said he only had 3 months of living expenses when you supposed to have 6 months. Get the 6-month savings first. Rainy Days are guaranteed to come in life, then become debt free, and then invest.
10. I intend to pay off the 1750 dollars in loans I have then teach myself code like the growing 69% of Software Developers from 2016 who got their first real job in a year. :P
11. You cannot declare bankruptcy on a student loan. That makes a student loan way more of a risk than any other kind of loan. Unless the return is a huge percentage, like double stock market averages,(15% or more) than it is dumb to invest that money.
12. What's a 401k?
13. Hey John, great video. Just wondering, when are you going to change the outro to end screen? It is much easier for mobile users to click on your videos/playlists/etc.
14. Hi John, I read somewhere in the comment section that you manage to eat around 2000 calories a day in your one meal. I've chosen a 16/8 fasting 'plan' so I manage to squeeze in about 2 and a half meals between 1pm and 9pm. I seem to struggle to get those 2000+ calories in (usually around 1800) which Iv'e read can be detrimental to muscle building as well as general health.
    
    Being the big guy you are, surely 2000 calories a day is not sufficient, or is there some other reason you manage to keep muscular and lean on a reasonable low amount of calories?
15. PAY THE DEBT FIRST! The market may yield returns over long periods of time but it has dips in between. Jim Cramer agrees, PAY OFF THE DEBT FIRST!
16. Never pay your debts when you can invest. You take that 4.57% interest rate. The current average annual return from 1926, the year of the S&P’s inception, through 2011 is 11.69%. This is a 7.12% return over debt. In about 10 years you have made back the principal on the loan after subtracting the interest rate paid. It's free money and a smart move.
17. lol I wish I ONLY had 31K at 5%. I was a dumb 18 year old
18. I'm in this exact same position. I am still in school and I graduate in May. I have paid off 20k while in school. I have 10k left. I plan to pay it off completely and stop worrying about it.
19. He's saying that if you do not have a plan, do not invest.