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Student Loans vs. Investments

Cradle6 593 108 July 9, 2016 at 09:44 AM
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My government student loan debt is a bit sizeable, with an interest rate of around 4-6%.

I don't have a 401(k) or any employer offered plans, so very plainly, assuming my income is high enough to cover my expenses, am I better served paying down my student loan debt above and beyond minimum payments or investing the excess?

I am risk averse, but that's also why I don't want to use up my savings on paying off my student loan debt (in case I need emergency cash). Of course there's risk in investments as well.

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#2
Post your income and expenses
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Joined Aug 2005
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We don't know how old you are, or your job/expense situation so its hard to say. However....

You should definitely have an emergency fund. That money is put aside and you don't touch it unless you have to say, a sudden medical bill or if you lost your job you can pay mortgage/rent for a few months and continue to eat.

Past that I would say I would put a good sizable chunk of extra cash to paying off the student loans. If your employer offers a 401k with company match you should participate so you get that "free" money. So you have to find a balance thats right for you. Of that left over money maybe you put 60% to paying off debits, invest 30% into a retirement and 10% into more general savings for say a car repair or something like that. You mix is dependent on your situation, everyone is going to be a little different.
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