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Another pay student loans or invest...

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  • Another pay student loans or invest...

    I recently refinanced my $236,000 student loan with Earnest at 1.89% VARIABLE over 5 years.

    I plan to have my 2020 tax advantaged space maxed by next month (solo 401K, Backdoor Roth IRA x2, HSA).

    I have a taxable account but have not funded yet.

    I have approximately 2 years of an emergency fund as this amount makes my spouse comfortable in this current environment as we have an infant.

    I am in a non-elective, salaried specialty.

    Soon I will have a significant positive cash flow each month to go to student loans or taxable. Obviously the market has been in turmoil. What does this forum recommend: accelerating a very low interest rate student loan payoff, maximizing taxable investing in VTSAX, or a combination of both?

  • #2
    Set it to a 5 yr plan. Rest to taxable.


    • #3
      It has been and would remain foolish to pay off student loans that are basically free faster than necessary. You lose liquidity which is precious here, and get nothing, less than nothing, its a cost.

      In this environment, you are given a chance to build a whopper of a nest egg that will do more for your wealth and net worth than the size of those loans. Try to think long term.


      • #4
        Talk about good timing! Let the cheap debt pay itself over time.

        Plow as much as you can in the market over the next few months.