Sentences with phrase «debt by investing in the stock market»

When the economy is doing well, it's pretty easy to outperform paying off student loan debt by investing in the stock market.

Not exact matches

When market conditions favor wider diversification in the view of Hussman Strategic Advisors, Inc., the Fund's investment manager, the Fund may invest up to 30 % of its net assets in securities outside of the U.S. fixed - income market, such as utility and other energy - related stocks, precious metals and mining stocks, shares of real estate investment trusts («REITs»), shares of exchange - traded funds («ETFs») and other similar instruments, and foreign government debt securities, including debt issued by governments of emerging market countries.

Theoretically, you can increase your wealth more quickly by investing it in the stock market at a 10 - 11 % rate of return than you can paying off your debt (at a ~ 6 % rate of return).

One of the best reasons not to pay off debt early is if you can get a better return by investing that money in the stock market.

The stock market has averaged around 6 - 7 % annual total return over the long - term, so by investing instead of paying down debt you are in fact earning an incremental profit (or less opportunity cost on your money).

But, I did the opposite approach by investing rather than paying down debt as stock market was very cheap in 2012 and 2013 than in 2015 (see this post: https://www.financejourney.com/borrow-money-to-invest-in-stocks-leverage-investing/).

For example, if they have a lot of consumer debt, then they probably would be better off paying off the debt before investing, as earning 5 % (say) in the stock market year over year will be eaten up by the 18 % + they may be paying on their credit cards.