Question: What’s better….. paying off debt, or building capital to invest?

Question: What’s better….. paying off debt, or building capital to invest?


Terrance Baldwin: Im doing both
James Michael: How do you split it up?
Terrance Baldwin: 75/25 more to debt.. once i get it off all will go to the capital
James Michael: My issue is time, the longer it takes to build capital, it’s going to the car payment lol
Terrance Baldwin: How much capital are you trying to build?. You already know how much debt you have..
James Michael: 50k and have about 20k in debt
Terrance Baldwin: Big numbers..
James Michael: That’s all it is too… just a big number lol
James Michael: I go back in forth with it all the time, I can pay the debt off but then I lose the capital I have, therefore it will take me a long time to build it back up again
Terrance Baldwin: Once that debt is gone though.. then it all goes to capital. Im doing it a little smaller lol but in a few years ill have 50k to trade
Sonny Singh: James Michael Expected ROI from 50 k has to outweigh compounded apr on 20k .
Andrew Mingoo Kang: don’t think like that. Set a goal and go for it! 🙂
Fernando Puerto: Paying off debt before investing into anything would be the best choice all depends on how much debt you have.
James Michael: It’s really just a car payment for me
David Johnson: It’s a simple cost of capital. If your loans are costing you more than the income you generate from investing, you should be paying down debt first.
Brian Harrison: Sell the car
Warren McEnulty: Depends on money’s interest rate.
James Michael: The money will be use for stocks or real estate
Jake Mays: James Michael, with this question, I suggest paying off debt first, if your already getting wins from stocks, keep that strategy you’ve used to win, debts won’t go away until payed off, capital investing is a risk and can go away.
James Michael: Good answer my friend, I like the thought process
Tyler Bohannon: Consider the interest rate on debt as well, it’s a loss you’ll never recover from the longer you have it
Kristin Faith Isaac: Paying off debt. Your interest rates will go down drastically.
Larry Miller: Paying off debt hands down .
Microphone Hen-Rock: Get rid of debt. It’s takes away capital to invest
Wendy Flores: Def paying off debt. I paid off all of my credit cards in 1 year 3 mos. Now investing to eventually buy an investment property. Set small goals and you’ll see how quickly you accomplish them and how great it feels to have less debt.
Albertflocka James: Do both
Mike Reynolds: Debt free is the most important. My complete monthly expenses including food is less than 1k per month. Property a taxes and insurance are my only bills. Everything thing else goes into investments and travel. I had a goal to retire by 40. I actually succeeded.
Jedu Rem: Depends on what kind of debt you have, and how much is the interest. If it’s a mortgage, I would not pay it off, since it’s a long term and low interest rate. I would invest that money into something with a goal of earning more than the interest of my mortgage. I would pay off credit cards which has a ridiculously high interest rate. But it also depends on how you deal with your debts emotionally. If having a debt makes yourself unease, pay it off.
Juan Pablo Velez: Depends on the debt, and what the capital will be used for…. I do both at the same time
Adam Miller: ALL depends on the interest rate on the debt. If you can’t beat that rate with gains on your capital then you should pay the debt first. If you are average higher gain % on your capital then the investment takes priority and you pay off the debt from your gains
Paul Kindzierski: Look theirs 50 answers to your question. If you owe me debt better to pay me off, then build the money in your wallet. If you owe money to the bank better hold cash vs having money in brokerage account as they can just take it called “set it off”. Now you owe some crazy credit card debt they will send you to collections and with their high interest rates, if you can’t settle for pennys on the dollar you better of charging it up and filling bankruptcy. Now back to normal people that look to invest. They invest in dividend return stocks to get monthly money. Like $CLM. 18% monthly payer. Most work off the monthly dividend list building a sold portfolio of monthly income that funds their brokerage account of pays their bills $3,200 in $CLM about 220 shares gets you $50 bucks a month to pay your boost mobile bill..
Paul Kindzierski: Owning a 24k car paying 350 a month for the car then $100 a month for car insurance vs owning 24k of Clm getting 350 a month. If you invest instead of trying to find the next big pop you’ll make money to pay your bills making you debt free and a pay Ch…See more
James Michael: Im looking into clm now thanks, do you have any other good monthly dividend stocks?
Paul Kindzierski: James Michael one that’s off the radar for most is $CEN it’s a play on oil mlp’s but any search of monthly dividend like $ARR paying monthly, is a good start I started with buying enough shares to make $10 bucks in most of the monthly payers. It helps to spread out your money.
James Michael: I have a couple share of O right now!
Paul Kindzierski: James Michael I would focus on the 10% yield and better and open small share count to get $10 a month and you will do DD and see what’s good and what’s bad. I don’t have more then 6k or getting $50 a month in any monthly payer Incase it pulls off a Burnie..
Paul Kindzierski: James Michael $O is a ok stock a bit low yield for me being under 6% yield
Paul Kindzierski: James Michael their is over 500 stocks that pay monthly dividend. I would look at the top of the list for the higher yield dividend first
James Michael: Thanks!
Paul Kindzierski: James Michael putting 3,200 into $O gets you $14 a month vs putting 3,200 into Clm gets you $50 a month. Or putting 3,200 into $ARR gets you $26 a month that’s under 10k making you $90 a month steady paying off your phone bill or car insurance..
Paul Kindzierski: And you just buy the next stock putting in no more 6k into it and gettting no more then $50 a month from a position till you have enough monthly income to cover all your bills and your retired…
Paul Kindzierski: James Michael and don’t go chasing the high yield dividend like CHKR and try to avoid the oil well stocks like sdr too as they not monthly and the dividend decreases based on oil price and the position in time will stop paying dividends and be delisted. You need to set a goal of making min 5k a month to pay for nursing home unless you think your kids will pay the nursing home bill for you 😂😂😂
James Michael: Thanks Paul I’m definitely looking into that, much appreciated
Paul Kindzierski: James Michael Td Ameritrade will let you set up bill pay and give you a debt card to pay your bills once you gave you monthly income sold enough to pay your bills .. and don’t forget to add your kids to the account or set them up with dividend stocks w…See more
Erik Jo: The ones that mentioned interest are the ones to listen to. I make 13% average year over year on my investments. Therefore, i pay off any debt that’s costing me more interest than 13% immediately. Anything less than 13% gets paid off at the agreed interval. Credit cards – some are 12% I still pay those off before investing simply because It’s so close that any fluctuation in investment could bring it below 12%. My car is 1.4%, i could pay it off faster than agreed, but that would take money out of investments that earn almost 10 times that. house is 3.75%, i’m paying that as agreed. Same reason.
Dominic Gray: Erik Jo agreed! Well put
James Michael: When it’s all broken down it makes a lot more sense, I’m just always worried of time
Sergio Urquidez Cervantes: Paying off debt
Delores Erica: Both
Edgar JA: Trying to pay off the debt so i can invest to the fullest.!!! Couple months more and debt free.!!!
Pretty Ntombenhledunn Pretty Ntombenhledunn: paying your debt
Dominic Gray: Time value of money would determine that. If you’re paying off a debt that’s costing you $20 vs using that extra payment to earn $30 on investment you’re missing out on $10.. Obviously this is small scale but you get the idea. It all depends what the investment can return you and what the cost of debt is
Christian Ruiz: Honestly paying off debt in my opinion. I don’t like to be tired down owing people money. Once you’re free from that you will be amazed at how much extra money you will have to be able to build capital to invest with
Brandon Garneau: Pay off debt
Jarhett Wenger: They are not two separate things… they are steps in sequence to building wealth.
Arthur Pisani: Whatever you were going to invest take 25% of that and invest with it and the 75% go towards your debt when you’re finished paying off your debt go full force
Richard Mccormick: Pay off the debt
Larry Miller: Ask yourself this . If you were out of debt would you borrow money to invest ? If the answer is no, pay off debt .

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