Should I pay off my credit card debt or invest my cash?

I have a $10,000 credit card bill and $10,000 to pay it off. However, I've been doing balance transfers for the past couple years at 3% ($300) and have my $10,000 in the stock market/mutual funds. These bring a return of 15% or so, and common sense tells me that this is the right move. My credit score is around 820 and I pay the monthly minimum every month. I guess I'm looking for validation because they estimate the market to hit $26,000 by next year.

Investing, Mutual Funds, Stocks
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October 2017
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Yes, definitely pay off your credit card bill.  As you probably know, the interest on credit card balances is usually excessively high, quite possibly over 20%.  So if you're paying ony the minimum each month, you're hurting yourself and it will take a very long time to get down to zero.

The fact that you've had a return of 15% or so in the past is no guarantee that you will continue to be so fortunate in the future.  Indeed, given the richness of current market valuations I think it's quite likely that returns over the next few years won't get above single digits.  Whoever thinks the market will hit 26,000 next year is spending too much time in FantasyLand.  Although it's possible that the current rally may be extended, that will almost certainly lead to a substantial correction.  Please do keep that in mind.

The best course of action is to reduce your debts and take a more moderate view of prospective returns on your investments.  By doing so, you will be better prepared for the inevitable ups and downs that lie ahead.

Good luck!

November 2017
October 2017
October 2017
October 2017