Episode #2 - Opportunity Cost of Consumer Debt

Advice on consumer debt and the implicit costs associated with taking on debt as a young professional. According to Credit Karama, in Q2 of 2020, the average car payment was $568, assuming a conservative rate of return on just the S&P 500, over the course of the loan, you could have a $50k portfolio! If you were the hold that portfolio into retirement, you would be worth 7 figures after 35 years! I also answer some of the communities questions on money market mutual funds, disruptive technology funds, and target date funds. Make sure to check out this financial calculator and experiment with different return and contribution assumptions: https://www.calculator.net/future-value-calculator.html Money Market ETFs: 1) SSHV (iShares Short Treasury Bond ETF) – Invests heavily on the short end of the yield curve, U.S Treasury bonds with maturities between 1 month & 1 year. Expense ratio of .15%. 2) NEAR (iShares Short Maturity Bond ETF) – Does not aim to track an index and is actively managed for a higher expected rate of return. Higher expense ratio of .25%. 3) BIL (SPDR Bloomberg Barclays 1-3 Month T-Bill ETF) 4) GSY (Invesco Ultra Short Duration ETF) Tax consequences of Money Market ETFs: https://www.schwab.com/resource-center/insights/content/how-is-etf-income-taxed ARKK – ETF discussed later in the podcast which is focused on investing in mid-cap growth companies in the disruptive technology sector. High expected returns but with an above average exposure to market risk. The fund is very tax inefficient due to high turnover, so consider adding this fund in a more tax advantaged account. Follow me on Instagram @ WallStJunky and Twitter @ wallstjunky44! DM me on any platform listed at the bottom of the description or email me at wallstjunky@gmail.comfor any questions or topic requests Make sure to check out the Podcast on Spotify, Google, and many others or at my host link @ https://anchor.fm/wallstjunky https://linktr.ee/wallstjunky Favorite economists to follow: Mohamed A. El Erian & Peter Schiff Try TD Ameritrade’