Quote:
Originally Posted by RaiderH8r
That's just stupid and myopic. If the $5K loan is accruing interest at 4% and the money market is making money at 10% then you've just lost 6% by paying off the loan instead of investing it.
Same goes for the home mortgage. Sure, if you're just going to stuff the cash in a mattress then pay off the debt. But if your rate is 5% and your ROI in the market is 20% /yr averaged over the life of the loan well you just earned a nifty 15% on money that otherwise would have gone in the can.
The only debt one should rush in an "at all costs" fashion to pay off is credit card debt. Christ, right now if got an ARM home loan your rate is actually lower than it was 3 years ago.
I know you like to fellate yourself from atop your high horse for your financial "savvy" but stop being a dick about it because the bottom line is throwing money out the window because you've assigned some misguided evil to debt is reeruned.
I work for my money then I make my money work for me. Bam.
My guitar still costs more than your car and I've still got more cabbage in the couch cushions than you earn in 2 years.
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Why would you pay someone 4% interest when you have cash money sitting there?
Keep thinking like that and you too will be broke all your life depending on someone else to decide if you will or will not have any money...