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Can anyone shed some light on quant funds please? https://groww.in/mutual-funds/escorts-tax-plan-direct-growth
I am seeing stellar returns and extremely low expense ratios but apparently since they're quantitatively managed algorithms, they don't account for things like corona for example.
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Student loans are usually such low interest rate that I wouldn’t do that. Keep the cushion and emergency fund and make some extra payments here and there.
The best feeling in my life was paying off my student loan!!
Depends on the interest rate. I’m a firm believer that any debt over 4% (my worst case scenario for index fund returns) should be paid off. Personally I used a 3% threshold myself.
One thing to consider is that by wiping out your loans, your debt to income ratio will be favorable for when you do apply for a home. And since you won’t be hit with a PMI, the urgency to save up for a down payment isn’t really there.
I will say that once you buy a home, it will be considerably harder to pay off your student loans because you’ll have less to work with each month and mentally it will be tough to stay disciplined.
Wait a little longer before paying off the loans. We live in uncertain times and you don’t know when you may need access to some cash. Buying a home can be expensive and come with a lot of unexpected costs. Even with a VA loan you will have to have some cash in reserve.
I had been saving a little bit to have cash in case anything happened. I have an 80k salary and don’t spend money besides the necessities. Could have had a lot more savings if I hadn’t payed already 35k in loans. I just help my family out and pay for my personal expenses. What would you do?
I’d follow Dave Ramsey (google him if necessary) and set $1k aside and put everything else on paying off that debt (assuming that’s your only debt). You can’t imagine the feeling of being debt free. You’re so close so go for it! Good luck!
I think the intention is $1k/month to savings and the rest into paying down the debt. You have a good cushion of savings already, likely around 3-6 months of expenses. I would stay patient and aggressively pay off your student loans. You could probably get it done in a year or so. Want to move out earlier? Pay more aggressively.
cash is king. Do what you need to do to buy the house but don't put all the cash into paying off your student loan. You may need that cash later.
Keep your liquid assets as a cushion and/or buy a house. Don’t worry about paying down a student loan. There are all kinds of protection you get on low interest caps, loan deferrals (depending on the student loan type). If you pay it off, it feels good, but you also now have less free cash for when it might be needed. If you buy a home you can always use it (worst case) as collateral if you need some emergency money as well. Another thought - if you can make more money in an investment with the cash than the loan interest, you are always better off investing the money vs paying off low interest low risk debt, provided you are able to make the loan payments.
Just refinanced my student loans with PenFed: 1.06%
Not sure. I applied and the initial offer was 1.5%. After all the processing, the final offer came out 1.06%
Do the cost Bennifts analysis for yourself based on age and ROR. I just took from my savings to pay off mine for my personal mental health.