Woman owes $555,000 in student loans

[Particle Man]

Originally Posted by Rider

75% down? Hell, you might as well just pay cash and skip the 25% loan.

If we can cut it, we'll probably do just that. Depends on the housing market and location available. By that time, we'll have 0 other remaining debt (we don't have CC debt, one out of the 2 cars are paid off with the last one being paid off by mid-year 2010, the bike and the sleds were bought outright, and the student loans will be finished of within a couple years).

I hate not having a plan with stuff, can you tell?

[Homeslice]

How long until you have that amount? If it's going to take several years of saving, then at least some of it should be in stocks, and the rest in stuff like muni bonds, otherwise you're getting hosed by today's crappy interest rates on savings & CD's.

[Particle Man]

Originally Posted by Homeslice

How long until you have that amount? If it's going to take several years of saving, then at least some of it should be in stocks, and the rest in stuff like muni bonds, otherwise you're getting hosed by today's crappy interest rates on savings & CD's.

couple more years (3 at most).

[shmike]

Originally Posted by Homeslice

How long until you have that amount? If it's going to take several years of saving, then at least some of it should be in stocks, and the rest in stuff like muni bonds, otherwise you're getting hosed by today's crappy interest rates on savings & CD's.

Seriously.

Who in their right mind would settle for a 2% CD when he could have been in the market the last 5 years and yielded over 5%*.















*That would be a negative 5%, but hey, at least he'd be in touch with normal Americans, right?

[Particle Man]

Originally Posted by shmike

Seriously.

Who in their right mind would settle for a 2% CD when he could have been in the market the last 5 years and yielded over 5%*.

*That would be a negative 5%, but hey, at least he'd be in touch with normal Americans, right?

I like having a plan and I'm conservative as all hell with investments. CD's it is, sorry guys. I don't like to take chances no matter the potential return.

[Homeslice]

Originally Posted by shmike

Seriously.

Who in their right mind would settle for a 2% CD when he could have been in the market the last 5 years and yielded over 5%*


*That would be a negative 5%, but hey, at least he'd be in touch with normal Americans, right?

Selective reasoning. I could just as easily have said he could have earned a positive 50% if he'd been lucky enough to put it in the market last March. But I didn't because that would be a dumb argument, since short-term performance (including the last 5 yrs) doesn't say shit about long-term direction.

Also, you realize I said only SOME of it in stocks, right?

I also didn't know how long he'd need to save, which is why I asked. If he only needed to save for 5 years, then I probably wouldn't buy any stocks either, but if it were longer than that, I'd put some of it in.

[shmike]

Originally Posted by Homeslice

I also didn't know

Exactly.

[CrazyKell]

I totally get how crippling it can feel. I have student loan debt and even though I'm working to pay it off, I feel like I will never get ahead.

But she obviously just stuck her head in the sand for it all and expected it to go away.

[Homeslice]

Originally Posted by shmike

Exactly.

which is why I asked?

[shmike]

Originally Posted by Homeslice

which is why I asked?

You asked and then proceeded to spew your "strategy" before knowing one not to mention any of the answers.

I gave the example of 5 years.

Particle said 2-3 more.

So with a time horizon of 7-8 years, you would have invested in stocks? I know you said muni's too but they haven't faired much better.