Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

YOU STUPID, IGNORANT SON OF A BITCH, DUMB BASTARD! 

10/12/2014

0 Comments

 
Editor: Crass Cash
Here's another episode of what I like to call, "Where did they make the mistake?".  

This episode comes from CNN Money about an engineer who thinks it's better to pay the minimums on his student loans and invest the rest.  

http://money.cnn.com/2014/12/11/investing/dont-pay-off-your-student-loans/index.html?iid=Lead

Read the article and let me know where he's making the mistakes.  

1. Thinking the stock market will return 11% just because it has in the past.  Logic Alert!  You've never died so I guess that means you'll live forever?  The market is very overpriced at this point and to think that it's going to return 11% going forward is fucking retarded.  
2.  Your mom declared bankruptcy because of your student debt.  Hello!  Time to start paying her back fucker!  
3. Student loan interest is tax deductible, but it would have been completely phased out for the amount of money that he's probably making now.  If his AGI is over $75,000 he receives absolutely no tax benefit from it.  
4. All of his calculations are going to flip flop when the stock market drops 50%.  

Student loan debt is awful.  It can't be bankrupted and it's nearly impossible to get rid of except to pay it off.  The only time I advocate you saving money over paying it off is to build an emergency fund (3-9 months worth of expenses) and to just match the company retirement plan (3-6% of your income).  Other than that, get that shit paid off ASAP!    
0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    October 2017
    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.