Note that 10 year high-quality corporate bond yields are currently at 4%, and 10 year US debt is <3%, so a low-risk 10-year loan at 5% is a pretty incredible deal. Your recommendation to pay off debt at 4% before investing seems relatively safe, though if you think your future earnings are very large relative to your current wealth you might want to couple that with a small leveraged equity position (e.g. using a leveraged ETF) so that you can at least get compensated for some risk.
Your 7% expected returns estimate is probably (significantly) too optimistic right now.
Note that 10 year high-quality corporate bond yields are currently at 4%, and 10 year US debt is <3%, so a low-risk 10-year loan at 5% is a pretty incredible deal. Your recommendation to pay off debt at 4% before investing seems relatively safe, though if you think your future earnings are very large relative to your current wealth you might want to couple that with a small leveraged equity position (e.g. using a leveraged ETF) so that you can at least get compensated for some risk.
Your 7% expected returns estimate is probably (significantly) too optimistic right now.