Considering the rising interest rates and the down market, is it still a good idea to focus on investing? Should you pay down your debt first? What does it depend on? How to do the math? Let’s answer those questions with the help of a former financial planner and seasoned investor.
- There are three spheres to consider when choosing to pay debts or to invest: your personal situation (what you are comfortable with, your job, your financial goals, etc.), your debt situation (interest rate, fixed or variable, amortization, etc.) and your investment situation (investor profile, type of investment, horizon, investment goals, etc.).
- There are “bad” debts that should be paid first. Creating a debt snowball is a good option. Mike explains how to do so.
- What does the math say? Which option seems more logical in a pure mathematical view?
- What should you do with your mortgage? Is it a good idea to max out your payments right now? Or should you focus on investing?
- What’s the place of liquidity in a debt vs investing plan? How can you create an emergency fund?
Liquid has created a net worth of $2M in only 14 years of work-life but he doesn’t talk about numbers. Rather, he insists on mental models and the philosophical approach needed to accomplish any investment or financial goal. Here is his story and best tips to reach Financial Independence early.
During a recession, it is not time to change your entire investment plan. But if you need to rebalance, sell some losers, or if you have money to invest, which stocks to buy? Today we thought about giving you ideas of good recession performers.
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