|
Iowa | Investing in an index fund as I tend to do ties your investment performance to the general health of the stock market. If we get to a point where the market in general consistently falls short of a 2.5% return, we are in a lot of trouble. That is not to say lesser gains or even losses aren't possible, but historically you can earn an average of around 8% without much risk. And sure you can save more once you eliminate the debt, my point is that most people don't have the means to pay off the debt early while also saving a meaningful amount. So they forego saving as much as they could if they were to just make the payments and in the meantime miss out on both the net gain of ROI vs. interest and the years of compounding while making the accelerated payments. | |
|
Dave Ramsey coarse
