The Festival of Under 30 Finances is a brainchild of Kira at Penny Foolish. To read more about the Festival of Under 30 Finances, click here. To submit your articles click here.
There is tradition of a “host question” for this festival; according to which, the host asks a question as a topic of discussion and readers provide answers…sort of provides an interactive feel to the festival.
I will be hosting the next edition of the Festival of Under 30 Finances at this blog on Jan 26th, and here is my question:
Assume you are an average 25 year old with $25,000 debt (on account of your student loan) You have been given a lump sum $10,000 and the following four choices:
- Invest it for your retirement funds.
- Save/invest it for your future home.
- Save/invest it towards your child’s/children’s future college education.
- Pay part of your student loan debt.
You can pick only one of the above choices towards which you should use the entire $10,000. Which one will you pick? ..and Why? Assume that the rate of return on the three investments choices is the same and the student loan charges you an interest rate that is equal to this rate of return. Would your answer be any different if the amount was $25,000 instead of $10,000? Again, you can pick only one of the choices.
There…some food for thought for you guys :). You can either give your answers here (or email me) and I will post it along with the festival entries, or you can submit your answers with your article for the festival.
Here are some FAQs for submitting your articles to the Festival of Under 30 Finances.
1. Do I have to be under 30 to submit articles to this festival/carnival?
- No, you can be of any age; just submit something directly or indirectly related to financial situations/issues of the under 30 age group.
2. Should the article be related to the question above?
-No again. You can submit articles on any other topic you like to write on….as long as it is directly/indirectly related to the under 30 age group.
3. Is it a “must” to answer that question in order to participate?
-No :), you could simply submit an article and choose not to answer the question. However, answers will be appreciated in keeping with the interactive spirit of the festival.
Again, here is the submission link.
While you are here, check out the current (12th) edition of the Festival of Under 30 Finances hosted at The Finance Journey.
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You’re hosting?
That’s hot.
Yes Dimes, I am hosting
Good resource for finance and I am gonna send my article soon…is there any time limit?? i mean any particular date or time for last submission????
Finance Guide 101: As long as you send it before the 26th of January, you should be ok :)..no particular time..may be before midnight? on the 25th
Being the kind of person I am with money I think that I would put the $10000 aside to be used as a down payment on a starter home. I would do this because I am a firm believer in getting out of the rental trap as early as possible.
For people that have poor money management skills I would recommend that they put the $10000 into some kind of retirement fund. I say this because a poor money manager will always find an excusse not to save for money for retirement, but a student loan MUST be payed back. If you have a $25000 student loan I would like to think that you have enough education to get a job that will pay well enough to purchase a home…even without using the $10000.
My 2 cents.
jon
beyoungandrich.blogspot.com
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