Key insights
- This post reflects individual investment decisions based on personal circumstances. While the user considers investing in stocks, paying off debt, or saving for a mortgage payoff, the direct impact on the broader US equity market is negligible. The post highlights the dilemma of debt vs. investment returns in a high-interest rate environment, a common concern for many individuals, but does not provide leading indicators for market movements.
In about a month I am getting around 220k from a home sale. This was our primary residence and will be getting it tax free due to the 2/5 rule. I’m 29 and have a little under 200k in investment accounts. Our current home is worth about 600k and we owe around 300k on it. I have a 6.4% rate there.
So the options…
A. Invest the 220k long term in stocks. I’d put some in high conviction individual stocks and the rest in ETFS
B. Invest most, but pay off a 9k truck note and 17k in student loans (3-4%)
B. High yield and sit on my money until I have enough saved to pay off the mortgage without liquidating
C. Liquidate everything and pay off the mortgage
Ultimately, I’m already leaning in one direction and understand the investment game… I’m 29 and doing I’d say pretty good. Just looking to see what the stock community thinks.