Dave Ramsey course

[chalee94]

Yes that is right I think. But if you think about it for a minute that is financially sound advice because if you are paying 15-24% interest on credit cards etc and your investments are bringing 12% at best...

that's the thing about a match though.

if i invest 6% of my pay in my 401k, my employer matches that 100%.

so someone making $50,000 will make a 100% return on the first $3000 that they invest...if you are in that kind of situation, you definitely need to take a look at your individual situation before throwing that 100% guaranteed return away.

 

[HHSTigerFan]

Yes that is right I think. But if you think about it for a minute that is financially sound advice because if you are paying 15-24% interest on credit cards etc and your investments are bringing 12% at best then you are still loosing 3-12% on your money until get that debt paid off. So yes it is very smart to stop investments and put that money to paying off the debt IMO. Now I have a mandatory state retirement plan that I don't have choice on but the rest I did.

But if its a company match, isn't your return actually around 124% on new money invested for that year?