Quote:
Originally Posted by Charlatan
Even if you are only putting away a few dollars here and there, start planning for your retirement now. Compound interest is your friend.
|
Right now? Compound interest is my enemy.
I'm better off putting a $500 monthly payment on my debts that range between 8% and 19.5% than I am into a portfolio that would, if I'm lucky, earn between 6% and 8%.
In cases like mine, it's better to clear bad debts as a priority until such a time that tax-deferred investments appear to have a better bang for the buck.
It's a matter of measuring potential interest earnings vs. reducing interest expense.
Always ask where the money is best placed.