Hi all, I'm having some uncertainty about some of my assumptions regarding how to utilize my monthly income
So I have student loans at 4.5% interest that I've been paying off aggressively for two years. I pay $600 extra per month on top of my minimum.
I was thinking of putting that extra $600 into the market because I'm confident I can outperform the 4.5% interest even via some index funds or ETFs.
However, my trouble with calculation comes with taxes. My intent with that $600/mo is to eventually cash out capital+gains to pay off my loans faster than I would have been able to paying directly.
But does that mean I'll need to outperform 4.5% PLUS 15%-30% in short/long term taxes? If that's the case, it seems not worth it right?
For the record, I already do max out my 401k (8% traditional and 7% Roth)
Can anybody help me here?
Submitted August 22, 2020 at 07:25PM by MightBeDementia https://ift.tt/3hgQgxP
