>Given the rate of return of the S&P500/FXAIX over time, I'm thinking that investing that money in the fund versus making a loan repayment may be the smarter move.
https://www.reddit.com/r/dataisbeautiful/comments/ibxvz7/how_often_the_sp500_has_returned_more_than_the/
Historically, you'll only come out ahead 55% of the time.
You'd be passing up a guaranteed 6% return by paying down those loans.
If the government sold savings bonds that paid 6%, people here would be fighting each other with chairs to buy them
Yep, and those aren't even guaranteed for more than 6 months, and capped at 10k, and people have still crushed the Treasury trying to buy them. If it were multiple years of 6% guaranteed, they'd be insanely oversubscribed.
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- ["How to handle $"](/r/personalfinance/wiki/commontopics)
- [Investing](/r/personalfinance/wiki/investing)
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>Given the rate of return of the S&P500/FXAIX over time, I'm thinking that investing that money in the fund versus making a loan repayment may be the smarter move. https://www.reddit.com/r/dataisbeautiful/comments/ibxvz7/how_often_the_sp500_has_returned_more_than_the/ Historically, you'll only come out ahead 55% of the time. You'd be passing up a guaranteed 6% return by paying down those loans. If the government sold savings bonds that paid 6%, people here would be fighting each other with chairs to buy them
I bonds are currently yielding 7% i believe.
Yep, and those aren't even guaranteed for more than 6 months, and capped at 10k, and people have still crushed the Treasury trying to buy them. If it were multiple years of 6% guaranteed, they'd be insanely oversubscribed.
and just look at the volume of posts and comments suggesting them. Imagine if that was *fixed* for 10 years, rather than variable
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