Wife has 90k student loan

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12-03-2016, 01:35 PM

#41

zerozero

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Joined APC: Sep 2014

Posts: 693

Quote:

Originally Posted by threeighteen

having cash in pocket is 100% more secure than having a paid-off home (liability) or a paid-off student loan (pointless, what are they going to do if you have to stop paying because some other bill came up? repossess your college degree?)

The cost of healthcare is going through the roof every year from here on out. Soon the only good/timely healthcare will be cash only, direct payments... if you can even find it. If you or your wife gets sick, you're going to want that cash instead of a paid-off house (what if the housing market tanks and you can't sell it if you need to?) or a paid-off student loan (they don't exactly offer College Degree Equity Lines of Credit at your local bank)....

Cash is king gentlemen. If you've got some extra lying around and you're looking for something to do with it, turn it into something that cash-flows monthly. Don't jeopardize your financial security just to pay off a loan.

You could probably buy a decent house with the amount of cash it would take to pay off that student loan, rent out the house, take the extra cash flow from the house (after paying the mortgage) to make the monthly student loan payment, and still have some extra cash coming in. Plus you'd be building equity at the same time.

I like a fat cash safety net too (aka: FU Fund).

But student loan debt is particularly troublesome as it cannot be discharged in a bankruptcy and even if you were to retire and stop working the govt (here to help) would come after your social security.

Sadly, college educations have finally become a scam.

12-05-2016, 07:59 AM

#42

Std Deviation

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Joined APC: May 2009

Position: Square root of the variance and average of the variation

Posts: 1,602

Is that the cash that's backed only by the full faith in the federal government?

If we get that far into economic ruin a gallon of water and shotgun shells will be worth far more than a pile of cash. Could be used as a fire starter though.

12-11-2016, 03:59 PM

#43

crewdawg

Super Moderator

Joined APC: Jul 2006

Posts: 5,549

Quote:

Originally Posted by chrisreedrules

Dave Ramsey isn't the be all end all. I've heard him give bad advice before.

That and his stuff isn't all that earth shattering to anyone who has half a financial brain. I will admit that he does help LOTS of people and that is great. I think we are terrible at giving our younger generation a good financial education. I guess finances are a taboo conversation to many, which I have never understood.

Quote:

Originally Posted by chrisreedrules

You could take $90K and make more money than you would gain by paying off student loans at 6% interest. I like real estate, but that's an animal that many aren't willing to tame. I earn almost a 10% ROI on one property and I've gained about 30% in equity. Looking to add more in the near future.

Quote:

Originally Posted by threeighteen

Cash is king gentlemen. If you've got some extra lying around and you're looking for something to do with it, turn it into something that cash-flows monthly.

You could probably buy a decent house with the amount of cash it would take to pay off that student loan, rent out the house, take the extra cash flow from the house (after paying the mortgage) to make the monthly student loan payment, and still have some extra cash coming in. Plus you'd be building equity at the same time.

THIS RIGHT HERE!