Welcome to the Investing for Beginners podcast. In today’s show, we discuss:

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Some ideas of how to handle a student loan debt of 500k and whether investing in the market to pay down the debt is a good idea.
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How to handle investing in a brokerage account after maxing out your Roth IRA.
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Some of the concepts behind using a DCF to value companies and why a bird in the hand is worth more than two in the bush


For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com

Today’s show is sponsored by:

Koch Industries – Good Profit

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Transcript

[00:00:00] Dave: All right, folks. Welcome to Investing for Beginners podcast. Tonight, we have episode 210, and we are going to go back to the listener well and answer some great listener questions that we got recently. So without any further ado, I’ll go ahead and start.

So I have, hello, Andrew. I have been listening to the podcast for a few weeks, and I’ve learned a lot. However, I have a large student loan debt, a 500 K, and wanted to know if you had any type of account besides maybe a money market account to set aside money, to allow it to grow quickly over the years, to help me pay off my loan faster while I’m making the monthly payments, any suggestion, which would be much appreciated.

Thank you. And look forward to hearing from you. Very respectfully, Ryan. Andrew, what are your thoughts on Ryan’s interesting question.

[00:00:44] Andrew: First off, hopefully, studying to be a doctor, a lawyer or something, hopefully, either way, you, I think it’s a good idea that tries to knock this thing out more if you can.

So the question is, how do I set aside some money so I can pay off this loan faster? Is there a place I can put it, let it compound, and then throw that on the debt? And so it’s really going to depend on where interest rates are. Listen to people bemoan the fact that, oh, back in my day, 20, 20 years ago, you could put money at a bank and get 8%, 10% today.

Interest rates are so low. Like one and a half, the percent is one of the baseline rates right now. And everything above or below that. So banks aren’t going to give you much more than one and a half percent today. And so if your student loans are 3%, 4%, then if you’re putting money away in any sort of account, you’re losing to the student loan.

So why not just pay that student loan off faster? That’s kinda how I would see it. The only other way you’re going to get higher than what you would get at a bank.