http://www.moneycrashers.com/read-this-article-about-twentysomethings-invest-or-pay-off-debt/?utm_source=rss&utm_medium=rss&utm_campaign=read-this-article-about-twentysomethings-invest-or-pay-off-debt personal finance blog Sat, 21 Nov 2009 04:07:50 -0600 http://wordpress.org/?v=2.8.6 hourly 1 http://www.moneycrashers.com/read-this-article-about-twentysomethings-invest-or-pay-off-debt/comment-page-1/#comment-2234 G Sat, 03 Jun 2006 14:50:44 +0000 http://moneycrashers.com/?p=118#comment-2234 $10k paying 10% in debt is not the same as $10k in mutual fund earning 10%. You must compare post-tax rates of return. Someone in the 25% tax bracket would need to earn 25% more in the mutual fund (12.5%) to make his/her returns equal to paying 10% on debt, assuming that the debt is not tax-deductible (mortgage, college). Good sentiment, though! $10k paying 10% in debt is not the same as $10k in mutual fund earning 10%. You must compare post-tax rates of return. Someone in the 25% tax bracket would need to earn 25% more in the mutual fund (12.5%) to make his/her returns equal to paying 10% on debt, assuming that the debt is not tax-deductible (mortgage, college).
Good sentiment, though!

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