Re:Not Saying Winter Is Coming, but Where’s Your Coat?
by njwi332 on Wednesday August 03, 2016 @10:33PM
(#12223010)
Paying off a loan that has 6% annual interest is mathematically equivalent to investing money that has 6% guaranteed return. When you look at it that way it's a great incentive to pay off debt
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Re:Not Saying Winter Is Coming, but Where’s Your Coat?
by ptype on Thursday August 04, 2016 @04:07PM
(#12228085)
Exactly, and actually if you take tax rate into account it looks even more appealing, e.g. if your marginal tax rate is 50% (as it is sometimes in Europe) you would have to earn 12% on your money before it is more beneficial than paying down your mortgage/loan. Hard to beat that Sharpe.