Should I Consolidate My Loans? An Investor’s View.
You can consolidate your loans to reduce the amount you pay in interest, or you can opt to lower your monthly payment. If you ask a personal finance expert, they'll tell you to pay as little as you can on the loan by going for a lower interest rate and/or a shorter loan term. As an investor, I often opt to minimize my monthly payment so I can reinvest the savings and maximize my earning potential!
Give Yourself a Loan Through Your 401(k)
I firmly believe every savvy investor should know how to access all the money they control, including retirement funds. “Hold on– shouldn’t I leave my retirement account alone until I turn 60?” I say NO!!! Use it to help you retire earlier! That’s what I’m doing, and I think anyone attempting to retire early should be doing the same. Why Borrow From My 401(k)? Want to retire early? The current threshold for withdrawing from your retirement accounts without paying early distribution penalties is 59 1/2. That means the money in your 401(k) is not helping you reach your goal of early retirement. Why not use that money to invest in something that can get you closer to financial independence? Let’s find a way to turn those seemingly “untouchable” funds into positive cash flow. When you loan yourself money from your…