Question

Once all of your college loans have been paid off, what would be a good idea to do with that extra money that you would then have? Please be very detailed.

Answer 1

Once the college loans have been paid off, the money must be invested in asset classes according to the requirements. After the college loans, there is generally not too much financial dependency, a proportion of money should be invested in long term quality small and mid-cap stocks, which would have high risk but high returns for the investor. Since these investments are for the long term, good returns will be generated from the same. A portion of the money should be invested in corporate bonds, as these bonds offer higher yield with relatively lesser risk. Also, a portion should be invested in a retirement fund, as this is the apt time when a retirement fund should be initialized.