541: Finance Friday: I've Got $150K Student Debt at 6.95%, Should I Invest?

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 28 June 2024

⏱️ 76 minutes

🔗️ Recording | iTunes | RSS

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Summary

Student loan debt can easily get in the way of financial independence, especially if there’s a high interest rate attached to your loans. But should you pay down this debt at the expense of investing for the future? There are several factors we’re going to explore in today’s episode! Lauren is a physician assistant with a stable W2 job, a house hack, and a side hustle that provides her with a little “fun” money each month. But as she and her partner work toward their goal of reaching FI in twenty years, they’ve got some money issues to work out—namely, how to tackle the $150,000 in student loans hanging over their heads. Should they pay down this debt, invest in real estate, or both? Should they put their retirement contributions on hold? One day, they hope to travel the world and enjoy their favorite pastime, kitesurfing! But should they fast-track this dream before planning for a family? Lauren is at a crossroads in her journey to FI, and in today’s episode, Scott and Mindy will provide her with an actionable blueprint she can use to achieve her financial goals, career aspirations, and dream lifestyle. Along the way, you’ll learn when to prioritize aggressive debt paydown, how to strike the perfect investment portfolio mix, and important things to consider before starting a family! Support today's show sponsor, BAM Capital, your path to generational wealth with premier real estate investment opportunities! In This Episode We Cover When to pay down student loan debt rather than invest in real estate Why buying rental property today will leave you with more cash flow in retirement How to financially plan for weddings, honeymoons, children, and other BIG expenses Paying off your primary residence versus buying MORE rental properties How to improve asset allocation with a mix of rentals and retirement accounts And So Much More! Links from the Show BiggerPockets Money Facebook Group Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums Finance Review Guest Onboarding Join BiggerPockets for FREE Mindy on BiggerPockets Scott on BiggePockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders Property Manager Finder See Scott and Mindy at BPCON2024 in Cancun! BiggerPockets Money - Episode 35: Hacking Your Life to Live for (Almost) Free with Craig Curelop BiggerPockets Money - Episode 514: How to “Travel Hack” Like a Pro and Get FREE Flights, Hotel Stays, and More! 00:00 Intro 01:25 Financial “Wellness” 07:01 Lauren’s Money Snapshot 15:51 MAJOR Career Decisions 22:15 FI in 20 Years (or Fewer!) 27:53 Paying Off $150K Student Loans 36:07 Weddings, Honeymoons, & Kids 44:55 Kitesurfing & Traveling the World! 57:39 Pay Down the Mortgage? 01:02:54 Enjoy Life AND Build Wealth! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-541 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	When combining finances, is debt pay down the most important or should investing in real estate take the driver's seat?
0:08.0	Hello, hello, hello, and welcome to the BiggerPockets Money Podcast.
0:11.0	BiggerPockets has a goal of creating 1 million
0:14.3	millionaires. You are in the right place if you want to get your financial
0:18.0	house in order because we believe financial independence is attainable for
0:22.3	everyone no matter when or where you're
0:24.7	starting.
0:25.7	My name is Mindy Jensen, and with me as always is my dollars and cents co-host Scott Trench.
0:31.5	Mindy, thanks for your wonderful intro there.
0:34.0	Today we're going to talk with Lauren Heath,
0:35.7	a physician's assistant out of Canada,
0:37.3	who has her first house hack and no student loan debt.
0:40.3	But she fears that there might be a glass ceiling
0:42.4	in her current career, and today we're going to discuss and get into how she is planning for her future with her partner and address some of the concerns that they have about combining finances.
0:52.0	Last we're going to touch on how they allocate their funds
0:54.6	to work for the best wind-filled life
0:57.6	that they want in retirement,
0:58.8	which involves traveling the world and kite surfing together.
1:02.4	Lauren, welcome to the BiggerPockets Money Podcast.
1:05.0	We are so excited to have you here today.
1:07.0	Thank you.
1:08.0	I am even more excited to be here today.
	...

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