Long story short I owe $25k in student loans and I have $25k in cash.
Obviously I could cut a check and pay it off but why shouldn’t I invest it in say VOO and another s&p500 fund and then use all profits from that to pay the loan?
My money payment is $380 a month which is 1.52% Off 25k so without accounting for tax’s and fees couldn’t I invest it and sell the profits every month and as long as it made 1.52% it would cover the loan. And if it performed better than I would have a larger payment that month. Obviously it could not make the needed amount but I’m not too worried as I can cover the payment without this money like I’ve been doing.
If I were to cover the payments without touching the 25k initial investment am not not coming out ahead versus paying the loan in entirety and then investing $380 a month?
Also the loan interest rate is 3.7%
Tell me your thoughts and pretend I know nothing (because I don’t)
Thanks