Debt And Investments Sedona AZ

Personal finance expert Mike Schiano explains why it's best to pay off your debt first rather than investing the money elsewhere.

Ruth Ann Burgueno Nutritional Counselor
(928) 282-9540
450 Jordan Rd Ste
Sedona, AZ
 
Only in Sedona / Sedona Psychic Wisdom
(928) 203-1194
PO Box 3294
Sedona, AZ
 
Imagine Solutions Today IBO
(928) 284-0374
PO Box 20365
Sedona, AZ
 
Cliff Castle Casino
(928) 567-7900
555 Middle
Camp Verde, AZ
 
Hendrix Law Office
(480) 507-0908
770 N Monterey St
Gilbert, AZ
 
Past Lives Healing LLC
(928) 300-1611
31 Spur Circle
Sedona, AZ
 
Heartsong Healing
(928) 300-6648
PO Box 4023
Sedona, AZ
 
Verde Valley Guidance Clinic
(928) 634-2236
8 Cottonwood
Cottonwood, AZ
 
Mueller Karl A The Law Office
(480) 584-3066
4172 E Orchid Ln
Gilbert, AZ
 
Turf Soaring School
(602) 439-3621
8700 W. Carefree Highway
Peoria, AZ
 

Debt And Investments

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Dear YOUNG MONEY,

I am going to be a college senior and currently I have $11,800 worth of student loans. My internship this summer is paying me very well and I would like to start investing in a Roth IRA. I would also like to take this last year loan-free. However, with investing in an IRA I won't have as much to pay for this last year, which will possibly mean that I have to take out my loan. What should I do, take out the loan and invest in a retirement account or pay the year off? (The loan would be for $5,500 and the initial retirement investment would be $1,000).

Thanks,

Tim


Tim,

My advice is standard when asked whether to start saving or pay off currently held debt. Always pay off the debt first. Especially taking into account the way the stock market is acting these days, if I were in your position I would attack debt now and avoid taking on additional debt if I could.

There will be plenty of time in the future to begin investing. In the meantime, if you want to start to save some money at a decent interest rate, plenty of online banks are paying 4.5% or more interest on savings accounts.

Good luck and please keep us posted.

Mike Schiano

"The DebtBuster"


Listen to a Money Minute with Mike at: http://www.inchargeradio.com/MoneyMinutes/default.aspx

Visit www.inchargeradio.com and read Mike's book, "Spend Your Way to Wealth."

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