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How much imprtance should be given to the fact that while the gains from the retirement of a loan can be estimated with certainty the returns from an investment always carry a risk attached to them?
Wiki User
∙ 8y ago
The level of importance depends completely on how much you need the money you are talking about for some other use. If you have a pool of money to either pay back debt (risk-free) or invest in a money making project (risky) the importance is how you would feel if you could not pay back the debt if you lose 100% of your money. If you would feel real bad about losing it, then it is real important, if you can afford to lose it and can make your debt payments some other way that is risk-free then not very important. Should this "feeling" be decided before you do something with the money? You betcha!
Wiki User
∙ 8y ago
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