Before jumping into the market, make sure you've paid off any high-interest debt
Rebecca Rothstein, a top wealth manager whose firm RVR Group manages $3.8 billion in assets for Bank of America Merrill Lynch's private banking and investment business,that too many young people head to the market in hopes of earning big returns before they should.
"A lot of these young people come and see me and they've got school debt, they've got car debt, and they've got credit-card debt," she told Business Insider's Marley Jay. Rothstein said she once recommended that a client's daughter with a high-paying job and $180,000 in student loans with an 8% interest rate focus on paying down the loans before investing directly in the stock market.
"I said, 'You're far better off investing in your 401, so you get some deferred income, and paying off your school debt,'" Rothstein said."'Any excess capital you have, use it to hunk down your school debt and try to get out from underwater that because the cost of that debt is cumulative and it's extremely expensive.'"
While there isn't a specific interest rate the industry agrees on, Business Insider's Hillary Hoffower
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