I am considering investing my tax return over paying off a chunk of my student loan debt. I have on average earn 11% using robinhood (without trying) and my highest loan rate is 7.75%. If I apply myself I predict I can do much better than currently.
I know capital gains tax is 5% for my tax bracket (USA). Any other reasons I would lose money?
Will this make my gains negligible, and am I better off financially just putting them towards student loan debt?
>>1139993
Did you apply cap gains taxes to the robinhood?
split the difference. say 25% loans 75% Robin.
I'd recommend the split to target loan balance down to below 50%. for that credit BOOOST
https://www.youtube.com/watch?v=Y3A_XGyZYG8
>>1139993
You have to be delusional if you think you can get a consistent 11% return on some shill app.
>>1140013
Ya thats what I'm talking about. For example gonna use $1000 as my principle for both.
1000*.0775*1= $77.5 interest per year (student)
1000*.11*1 = $ 110 - (110 * .05) = $104.5 after capital gains per year.
That's a $27 dollar difference and since I don't need to pay back loans till I graduate that is just free money.
>>1140018
> what is the stock market
Robinhood as an app has nothing to do with my % return retard. Insert any other brokerage platform and I'll have to pay fees
>>1140018
>You have to be delusional if you think you can get a consistent 11% return on some shill app.
You have to be delusional if you think you can get a consistent 11% return.
fixed that for you
>I have on average earn 11% using robinhood (without trying) and my highest loan rate is 7.75%. If I apply myself I predict I can do much better than currently.
No, you don't. lol
>>1139993
Immediately pay off the 7.75%, anything above 5% is solid guaranteed returns.
Imagine if the US has a low inflation near 0% or a decade of low growth and how cucked you will get.
>>1139993
If you could get consistent returns of 11% a year, sell everything and turn 100K into 5M+ by retirement.
>>1140052
>Insert any other brokerage platform
You know your argument only works if Robin Hood is equivalent to the other platforms, right?
Instead of asking /biz/, you can read the rules from the IRS itself
https://www.irs.gov/publications/p17/ch16.html
You know what?
One of the best and easiest gangsta mothafuckin calculators or cackalaytas was the TI 82.
They are like $5 on ebay and can do 99% of anything you would ever need. You can even oc the damn thang.