One of the most discussed (and controversial) financial topics is when it makes sense to pay off low-interest debt vs. prioritize investing. In this article, Debt.com highlights our own thoughts on the issue. When does it make sense to prioritize investing, and is there a point where you should attack that low-interest mortgage debt head-on? This article shares The Money Guy Show’s take below:
I have been criticized for recommending investing in your 20s and 30s over paying down low-interest mortgage debt. We have handled the criticism by understanding the math and power of compounding growth while you are young. We also knew that as we got older, there would be plenty of time to attack our low-interest mortgage debt in our late 40s and early 50s. You can equate how you pay down low-interest debt with the way you make your investment portfolio more conservative with bonds as you get older. While you are young, it is important to capture growth, but as you age, you cut risk by buying bonds and/or paying down low-interest debt.
Read the full Debt.com article here: 28 Experts Answer: How Were You Criticized for Managing your Money?
