A little backstory. I am 22, and I have a reliable job paying ~$60k a year. I have a healthy rainy day fun (3 months+ income). I max out my Roth IRA contributions annually, but have no other investments/portfolio. I am approximately $70,000 in debt at an interest rate of about 4.7% (making monthly payments is no problem whatsoever under current circumstances).
Now for the hard part: I just came into $25,000 cash. Sure, I could turn around and take a huge chunk of my debt away. If, however, I could beat 4.7% via investing in the stock market, wouldn't it make more sense to invest the money? Can I even beat that interest rate? When it comes to investing, if I wanted to start a portfolio geared towards retirement how would I do so? Indexes? Mutual funds? ETFs?
EDIT: Wow...I cannot believe how helpful you all have been. Thank you everybody for the advice!
Submitted November 06, 2018 at 05:21PM by throwaway18464926 https://ift.tt/2zxpHzQ
