LogFAQs > #965857857

badjay posted...

If you want advice, I'd recommend going to r/Personalfinance. They're usually better equipped for these kinds of questions.

One thing I do know, is you can buy 10k in I-Bonds as long as you don't plan on using it for 1 year. You're currently getting a guaranteed 9.62% rate on it until october. Once one year passes you can cash out if you need to and lose the last 3 months of interest. But this vastly beats savings rates from banks.

Duh. I just don't really use reddit. Hope there isn't a karma(?) requirement for that board.

CapnMuffin posted...

Im in banking and investments though this is not official advice and merely my opinion based off limited info.

I would use the loan and keep your savings, enough for emergencies and the rest invested. I think given a standard time horizon of 3+ years you could easily realize a return on investment greater than the rate you are paying on the equity loan.

Im not a tax advisor but often you can claim interest paid on home equity as a deduction if used for primary home improvement. Something to consider too.

Im always hesitant to tell clients to balance transfer their student loans due to unforeseen benefits. Id leave it alone unless the savings are significant enough to you or a budget issue arises.

Ahh interesting. I will definitely look into that tax deduction.

I was definitely a bit hesitant to transfer her loans, but I just hate debt. Which I just need to get over.

She actually works in a low-income school district so there is a forgiveness/repayment option you can qualify for up to like $17,500 in forgiveness after 5 years in a low-income district. However, by that time we'll have them mostly paid off...unless deferment continues to drag on.