Hi everyone,
I recently sold my house and have $330,000 sitting in my bank account. I plan to cold-open an eye clinic in 2017. My spouse's salary is $283k a year.
Should I pay off our student loans at 4.49%? Or, should I save the money to fund my new business?
My private practice consultant has recommended that I pay off my student loans.
I suspect the benefits are:
1) Increased cash flow because debt service eliminated. This will help me get a business loan.
2) Interest on a business loan is tax deductible. Student loan interest is not (because of our income.)
3) Banks like give larger loans more than smaller loans
Should I follow their advice?
Many thanks in advance.
I recently sold my house and have $330,000 sitting in my bank account. I plan to cold-open an eye clinic in 2017. My spouse's salary is $283k a year.
Should I pay off our student loans at 4.49%? Or, should I save the money to fund my new business?
My private practice consultant has recommended that I pay off my student loans.
I suspect the benefits are:
1) Increased cash flow because debt service eliminated. This will help me get a business loan.
2) Interest on a business loan is tax deductible. Student loan interest is not (because of our income.)
3) Banks like give larger loans more than smaller loans
Should I follow their advice?
Many thanks in advance.
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