Video transcript: How to manage debt and invest at the same time
On Screen:
Ask a Money Mentor.
On Screen:
J.P. Morgan Wealth Management logo.
Legal disclosures:
Investment and insurance products:
- Not a deposit
- Not FDIC insured
- Not insured by any federal government agency
- No bank guarantee
- May lose value
Announcer:
Can you pay off debt and plan for your long-term goals?
On Screen:
A man with dark hair and a short beard speaks to us from an office.
On Screen:
Grady Wirth.
Advisor,
J.P. Morgan Wealth Management.
Grady:
Short answer. Yes, it depends on your current financial state and your goals. I'd say think of a scale. If your investments earn a higher interest rate than your lower interest debts charge like student loans or mortgages, you may be able to lighten the debt load while investing.
On Screen:
Grady puts a coin on a scale, tilting it to the right.
On Screen:
Low Interest Debts - Pay down while investing.
Grady:
But if your debts have higher rates like credit cards, you may want to pay those down first.
On Screen:
He puts more coins on the other side of the scale, tilting it to the left.
On Screen:
High Interest Debts - Pay down before investing.
Grady:
You don't have to have a lot of money to invest for long term goals. Start small and chip away at debt while your investments grow.
On Screen:
He puts more coins on the other side of the scale – which balances it.
Grady:
It's a balancing act, but with the right strategy, you can work to reach both goals.
On Screen:
Reducing Debt While Planning For Long-Term Goals:
- You can pay off debt while investing for long-term goals.
- Create an investing/dept-payment strategy.
- (and) Your investments can start small.
On Screen:
J.P. Morgan Wealth Management logo.
Legal disclosures:
Investing in securities involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Outlooks and past performance is not a guarantee of future results.
J.P. Morgan Wealth Management is a business of J.P. Morgan Chase and Company, which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member of FINRA and SIPC.
Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida.
Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB).
JPMS, CIA, and JPMCB are affiliated companies under the common control of JPMorgan Chase and Company. Products not available in all states.