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B.C, Canada    |

To Pay Off Debt or To Invest?: That is the question.

17.04.2018

 

https://www.investopedia.com/articles/pf/08/invest-reduce-debt.asp

 

          Sticking with the theme of paying off debt, here is a great short video discussing the question of whether to pay off your debt or to invest your money. It is a question I thought about long a hard. I eventually narrowed it down, and decided to eliminate any debt with an interest rate of 5% or higher. This pretty much included all my debt except my mortgage. For me make minimum payments on my mortgage was a no brainer. The interest rate is low, at 2.5%. Investments are not a guaranteed return, but I'm confident my portfolio will have a greater return than 2.5% per year, making investments the better choice. Me and my wife also run our own business, so the mortgage actually acts as a write off at year end, saving us money. Everybody's situation is different. Evaluate where you are at in life, what your stressors are, and crunch the numbers to figure out what makes sense. For me, no debt is good debt, but I am ok hanging onto my mortgage for the time being. When interest rates rise, I will re-evaluate my situation.

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DIY  Wealth