Don't Borrow To Invest

Megan and her husband received a $70,000 inheritance a year ago. They have $28,000 in debt. Should they pull $28,000 out of their investment to pay down the debt?

QUESTION: Megan in Indianapolis and her husband received a $70,000 inheritance a year ago. They put $50,000 in investments with a wealth management group and saved the rest. They have $28,000 in debt. Should they pull $28,000 out of their investment to pay down the debt? Dave tells her to pay the debt off now.

ANSWER: If you were sitting there with $22,000 in investments, would you go borrow $28,000 to increase the level of your investments? It’s effectively the same question. I would cash it in by the end of the day and be debt-free. Your wealth guy is going to go into orbit, but he’s wrong.

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Learn to Beat Debt

Take Control of Your Money!

The best way to get out of debt and take control of your money is to make a plan! Financial Peace University is that plan!

Find a Class

Thank You!

Your 8-Day Jump Start is on its way to !