Should you pay off your debt or invest? It depends, but here are a few pointers that may help you decide.
Hello, welcome to Arista Advice. Hope you're well and having a great day.
Question of the week is: "Paul, should we pay off our debt or invest?" People who find themselves with cash often find themselves in the dilemma.
We recently had a man walk in our office with over $30 million of cash that came from a family business. We spent a lot of time talking about a lot of important topics and have had many subsequent meetings and phone calls. Whether you have 30 million, five million, 1 million, $1,000 or $200, it's important to have a financial plan.
Investing as opposed to savings is the act of setting aside money that will earn a profit and grow. Keep in mind that some debt, such as your mortgage, may not be all bad. The interest charged on a mortgage and student loan is tax deductible, potentially, and it depends. You will have to pay this amount, but the tax advantage does mitigate some of the hardship.
So what's the takeaway? What should you do? It depends. Talk with your professionals - accountants, financial advisors, wealth advisors, fiduciary advisors to determine the best and the different types of investments, the debts you have, your tax liability, your risk horizon, and your risk tolerance to determine what is best for you and create a financial plan, so you know what to do.
Hope you're well. Please remember go to AristaWealth.com to look at the tools, tips, and videos. We look forward to talking to you soon.