The following is a guest article by Jon M. Luskin, a fee-only CERTIFIED FINANCIAL PLANNERTM (CFP®) at Define Financial.
If you’re spending less money than you make, give yourself a pat on the back for being frugal! But, how are you going to handle that extra cash: pay off your student loan debt, or invest?
Why would anyone with a student loan balance invest in the stock market? Because you’re hoping that the investment return will be greater than the interest rate on your student loan.
Investment Return > Student Loan Interest Rate
Notice that the keyword is “hope.” Will your investment return actually be greater than your student loan interest rate? Maybe. It depends. On what? A few things. Read on to find out! Read More