Comments on: Should I Invest or Pay Down Debt – How to Decide http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/ Personal finance blog discussing investments, savings, insurance and financial planning ideas to grow wealth Thu, 09 Feb 2012 00:14:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Pay Mortgage or Invest? | Dividend Money http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-38628 Pay Mortgage or Invest? | Dividend Money Thu, 19 Jan 2012 16:48:41 +0000 http://financialhighway.com/?p=2895#comment-38628 [...] took a similar approach to this question that The Financial Highway suggests. Look at both the mathematical and emotional aspects of the equation and answer honestly to the [...] [...] took a similar approach to this question that The Financial Highway suggests. Look at both the mathematical and emotional aspects of the equation and answer honestly to the [...]

]]> By: The Dividend Ninja » Paying off Debt is the BEST Investment http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-18841 The Dividend Ninja » Paying off Debt is the BEST Investment Tue, 08 Nov 2011 02:02:17 +0000 http://financialhighway.com/?p=2895#comment-18841 [...] Financial Highway article talks about the emotions of knowing when to invest versus paying down debt. Ray illustrates a [...] [...] Financial Highway article talks about the emotions of knowing when to invest versus paying down debt. Ray illustrates a [...]

]]> By: Henry Gardiner http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-17544 Henry Gardiner Thu, 03 Nov 2011 08:18:35 +0000 http://financialhighway.com/?p=2895#comment-17544 Paying off debt would be a guaranteed return on your money, whereas an investment isn’t. It all depends on the situation, but i think people don’t realize how much of their paycheck ends up going to interest. If it’s high interest credit card debt, i would definitely opt to pay that off first. Good article... Paying off debt would be a guaranteed return on your money, whereas an investment isn’t. It all depends on the situation, but i think people don’t realize how much of their paycheck ends up going to interest. If it’s high interest credit card debt, i would definitely opt to pay that off first. Good article…

]]> By: Small Vs. Spendy: Which Cards do you Pay Off First? http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-10891 Small Vs. Spendy: Which Cards do you Pay Off First? Thu, 24 Feb 2011 12:05:17 +0000 http://financialhighway.com/?p=2895#comment-10891 [...] Miranda on February 24, 2011 · 0 commentsShareTweet One of the biggest arguments in paying down credit card debt centers around the order that you should use when paying off your credit cards. Most personal [...] [...] Miranda on February 24, 2011 · 0 commentsShareTweet One of the biggest arguments in paying down credit card debt centers around the order that you should use when paying off your credit cards. Most personal [...]

]]> By: David http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-4891 David Wed, 28 Jul 2010 22:13:10 +0000 http://financialhighway.com/?p=2895#comment-4891 With stocks you have to pay capital gains tax and dividend taxes on your investments which lowers your return rate. The stock market is unpredictable. The S&P 500 went down over 37 percent in 2008, which will take many years to recover from. I think paying off your mortgage is a safe bet. With stocks you have to pay capital gains tax and dividend taxes on your investments which lowers your return rate.

The stock market is unpredictable. The S&P 500 went down over 37 percent in 2008, which will take many years to recover from. I think paying off your mortgage is a safe bet.

]]> By: Home Finance Tip Blog » Emily’s list: National One-Hit Wonder Day http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-1259 Home Finance Tip Blog » Emily’s list: National One-Hit Wonder Day Sat, 26 Sep 2009 09:17:19 +0000 http://financialhighway.com/?p=2895#comment-1259 [...] 8. Financial Highway discusses how to watch whether you should pay soured your debt or invest. [...] [...] 8. Financial Highway discusses how to watch whether you should pay soured your debt or invest. [...]

]]> By: DebtGoal » Blog Archive » The Financial Highway to… Investing or Debt Elimination? http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-1252 DebtGoal » Blog Archive » The Financial Highway to… Investing or Debt Elimination? Fri, 25 Sep 2009 16:31:31 +0000 http://financialhighway.com/?p=2895#comment-1252 [...] post on the blog Financial Highway has provoked discussion on some familiar topics these days: whether it is better to invest funds [...] [...] post on the blog Financial Highway has provoked discussion on some familiar topics these days: whether it is better to invest funds [...]

]]> By: DebtGoal http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-1251 DebtGoal Fri, 25 Sep 2009 16:23:34 +0000 http://financialhighway.com/?p=2895#comment-1251 In any analysis of whether or not to pay off debt versus invest, it is critical to take into consideration the risk of not being able to pay off debt moving forward. Many are not aware that the risk increases from uncertain interest rates, so those with ARMs or credit card debt need to take extra care. Furthermore, the risk increases when cash flow evaporates, so doing a dead honest estimate of one's job security is key. Modifying these factors is any cushion is savings, or more generally, any personal assets that can be liquidated with short or medium-term notice for "emergency debt paydown". Admittedly, it is difficult to accurately determine whether to invest or pay down debt, so paying down debt is the safer bet -- unless there is already a high chance that ongoing debt payments would be for nothing, e.g. if a home is going to foreclose no matter what. In any analysis of whether or not to pay off debt versus invest, it is critical to take into consideration the risk of not being able to pay off debt moving forward. Many are not aware that the risk increases from uncertain interest rates, so those with ARMs or credit card debt need to take extra care. Furthermore, the risk increases when cash flow evaporates, so doing a dead honest estimate of one’s job security is key. Modifying these factors is any cushion is savings, or more generally, any personal assets that can be liquidated with short or medium-term notice for “emergency debt paydown”. Admittedly, it is difficult to accurately determine whether to invest or pay down debt, so paying down debt is the safer bet — unless there is already a high chance that ongoing debt payments would be for nothing, e.g. if a home is going to foreclose no matter what.

]]> By: Will @ Cheap Date Ideas! http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-1250 Will @ Cheap Date Ideas! Fri, 25 Sep 2009 15:47:00 +0000 http://financialhighway.com/?p=2895#comment-1250 Hey Ray, THANK YOU for writing this article. I've closely examined my "money psychology" and while I'm carrying some debt, I'm not comfortable with it ... AT ALL. I've been rather careless in the past and I want to take a disciplined approach to handling my finances till I emerge from it and only then will I want to leverage "other people's money" to invest. In the meantime, I'm building up a small emergency fund to cushion myself from anything that may pop up. The emotions portion of your article really resonated with me. Cheers, Will Hey Ray,

THANK YOU for writing this article. I’ve closely examined my “money psychology” and while I’m carrying some debt, I’m not comfortable with it … AT ALL.

I’ve been rather careless in the past and I want to take a disciplined approach to handling my finances till I emerge from it and only then will I want to leverage “other people’s money” to invest.

In the meantime, I’m building up a small emergency fund to cushion myself from anything that may pop up.

The emotions portion of your article really resonated with me.

Cheers,

Will

]]> By: Simple Weekend Roundup | Simplified Financial Lifestyle http://financialhighway.com/should-i-invest-or-pay-down-debt-%e2%80%93-how-to-decide/#comment-1245 Simple Weekend Roundup | Simplified Financial Lifestyle Fri, 25 Sep 2009 02:25:33 +0000 http://financialhighway.com/?p=2895#comment-1245 [...] is a common question we all have Should I Invest or Pay Down Debt – How to Decide. Ray @ Financial Highway offers a simple solution to this [...] [...] is a common question we all have Should I Invest or Pay Down Debt – How to Decide. Ray @ Financial Highway offers a simple solution to this [...]

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