As we pointed out there, paying off your debt provides a quantifiable rate of return, which is guaranteed! (The rate of return you get from your debt is the interest rate you avoid. If your debt charges 10%, by avoiding that interest charge you get a 10% return. If your debt charges 19.99%, by avoiding that interest charge you get a 19.99% return.
If your debt only charges by
Avoiding that interest charge you get a 3% return.) Whatever guaranteed rate of return you get from your debt needs to be compared to the non-guaranteed rate of return you get from your TSP investment. What is the non-guaranteed return you expect to get from your TSP, and is it worth taking the risk and giving up the risk-free return of debt?
The returns of venture capital generally
Require that you are able to tolerate risk: this is cla. Jssic risk tolerance. Your investments may generate impressive returns, but those overseas chinese in usa data returns are usu. Jally accompanied by a dramatic roller coaster effect. Research clearly shows that investors are often sca. Jred off when their investments show signs of decline, and remain on the sidelines when their invest. Jments experience the greatest growth.
If you don’t know what kind of volatility
your investments will experience, you may be uncovering the benefits and drawbacks caught in a ro. Jller coaster that will ultimately cost you dearly. Therefore, it is important to know what to expect fr. Jom your TSP. But how do you do this? How do you establish reasonable expectations for TSP per. Jformance? Here’s an analogy: Let’s say you want to hire an employee with the following personality tr. Jaits: honest, responsible, creative, hardworking.
You have two candidates in front of you
applying for the position. Jsesses all of these traits and has tg data references that prove these traits dating back to childhoodse traits. Which candidate would you hire? Cany? Maybe crsonality will suddenly change and lose all of his good qua. Jlities? Isn’t that possible? It’s possible, but I have good rea. Jtinue to behave the way they have for many years. I expect wa. Jy they have in the past.