Skip to main content

Beginner's Guide to Investing

Lesson 10 of 12

Investing with Debt

Erin Lowry/Broke Millennial

Beginner's Guide to Investing

Erin Lowry/Broke Millennial

Starting under

$13/month

Get access to this class +2000 more taught by the world's top experts

  • 24/7 access via desktop, mobile, or TV
  • New classes added every month
  • Download lessons for offline viewing
  • Exclusive content for subscribers

Lesson Info

10. Investing with Debt
Should you be investing with debt? Whether you have credit card debt or student loans, Erin advises on whether it makes sense to start investing or not.

Lessons

  Class Trailer
Now Playing
1 Class Introduction Duration:06:09
2 Compound Interest in Action Duration:02:47
3 Time Duration:02:55
4 Inflation Duration:01:10
5 Setting Financial Goals Duration:10:00
6 Must Know Terms Duration:20:00
7 Fees Duration:09:42
9 DIY Approach Duration:05:46
10 Investing with Debt Duration:02:15
11 Retirement Duration:12:52
12 Picking Initial Investments Duration:09:37

Lesson Info

Investing with Debt

by of debt. Should I still be investing? This is one of the most common questions that we have to debate for ourselves. So first, going back to what I said a lot earlier in this presentation is this idea of what kind of debt are we talking about? Because certainly not all debt was created equal consumer debt, credit cards, anything else? It's high interest. Those need to get paid off because you're not likely to be seeing returns like that in the market again. We're going to come back to this caveat of retirement in a second. But if it's consumer debt, I want you to be aggressively paying that off now with student loans. It's that fun. Answer of it depends. So what exactly does that mean? You have to do the math. I pose this debt question to all the experts that I interviewed for the book, and they almost unanimously came back with this magic number of 5% what they're talking about. It's 5% interest rate on your student loans being a cut off. If you are paying 5% or higher on your stud...

ent loans and interest mathematically, it's probably going to make more sense for you to focus on paying down the debt than trying to be investing in a taxable account in tandem. But if it's under 5% the math could more easily work out in your favor to be doing both at the same time. But the other thing that you have to consider is, even if it mathematically makes the most sense. Does it emotionally make the most sense for you? Because I have yet to hear somebody say, I regret paying off my student loans quickly? Not usually something good said. So you have to decide for your mental health and your own debt and risk tolerance. If you want to be investing in a taxable account at the same time that you're paying off your student loans, that's really a call that's on you. But make sure that you do the math on your interest rates. Now there's always an exception to the rule and that exception Being retirement. I would like it the bare minimum, especially if you have student loans. Honestly, in a lot of cases, even if you have some credit card debt, if you have the option for an employer match, on your account for a 401 K or 403 b. Please take advantage of it, even if it's just a little bit.

Class Description

AFTER THIS CLASS YOU’LL BE ABLE TO:

  • Create an investment plan that’s right for you and your budget
  • Build your net worth through stocks
  • Know the basics of investment terminology
  • Create short, medium, and long term financial goals
  • Understand your company’s investment options

ABOUT ERIN'S CLASS:

Exchange-traded funds. Brokerages. Asset allocation.

Most people want to start investing, but have no idea where to begin. How much do you need to start? How do you know if you’re taking the right first steps? In Beginner’s Guide to Investing, author and financial expert Erin Lowry breaks down the obtuse language and lays out your investment strategy options. Learn the common misunderstandings, set your financial goals, and take strategic steps no matter your starting amount, time frame or business context -- Erin has you covered.

Don’t let beginner’s paralysis get in your way; Erin provides you with the knowledge and tools for financial literacy. Learn the basics of investment terminology, the stock market, saving for retirement and everything you need to feel confident to start growing your wealth.

WHO THIS CLASS IS FOR:

  • Young professionals

ABOUT YOUR INSTRUCTOR:

Erin Lowry is the author of Broke Millennial: Stop Scraping By and Get Your Financial Life Together and Broke Millennial Takes On Investing: A Beginner’s Guide to Leveling-Up Your Money. Her first book was named by MarketWatch as one of the best money books of 2017 and her style is often described as refreshing and conversational. Erin has been featured by The New York Times, The Wall Street Journal and USA Today and on CBS Sunday Morning, CNBC and Fox & Friends. When she’s not thinking or talking about money, Erin is planning her next travel adventure or probably looking up pictures of dogs. Erin lives in New York City with her husband.

Reviews

Tatie Diallo
 

Wonderful course, she explains the basics of investment and why it is important, for a beginner that's the best class ever.

Liza Davis
 

Straight to the point basic investment advice. I would say following her conservative strategy is great for the long haul of low-risk saving for retirement. And a great way to ease into investing without worrying about losing your sbirt.

user-f8acdc
 

Basic easy to follow investment advice that answered many of my questions as a beginner investor.