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Started By
Message
pay off car or no?
Posted on 6/1/14 at 3:30 pm
Posted on 6/1/14 at 3:30 pm
thinking ahead to end of year bonus
if I continue my current pace my bonus could be pretty nice(range of 25-30k)
we owe or will owe around 20k on my wifes SUV, mine is paid off
lets say I get a 20k bonus in December and we owe 20k, do you think I should pay it off and save the $600 monthly payment or just put away the 20k and keep paying the $600 monthly note at 3.9%?
if I continue my current pace my bonus could be pretty nice(range of 25-30k)
we owe or will owe around 20k on my wifes SUV, mine is paid off
lets say I get a 20k bonus in December and we owe 20k, do you think I should pay it off and save the $600 monthly payment or just put away the 20k and keep paying the $600 monthly note at 3.9%?
4
Posted on 6/1/14 at 3:51 pm to dallastiger55
Can you get more than 3.9% after taxes with no risk?
I would pay it off.
I would pay it off.
Posted on 6/1/14 at 3:57 pm to makersmark1
That's what I'm thinking. Don't wanna pay taxes on stocks, etc
Posted on 6/1/14 at 4:16 pm to dallastiger55
That's pretty high for car interest. I would probably pay it off, unless your credit needs some repair. Then I might keep it for the boost.
Posted on 6/1/14 at 4:41 pm to dallastiger55
quote:
Don't wanna pay taxes on stocks, etc
Not saying you shouldn't pay off the car, but that is a pretty bad reason to choose not to invest.
Even if you can't put the money in a Roth (no taxes) and put it in a taxable account instead.
Its like saying that you don't wanna work anymore, because you don't want to have to pay taxes on your wages.
Especially considering that in almost all cases the taxes involved will be less than the tax rate you are having to pay for your income.
This post was edited on 6/1/14 at 4:48 pm
Posted on 6/1/14 at 5:28 pm to Volvagia
What Volvagia said
Posted on 6/1/14 at 6:39 pm to Chris Farley
I understand but where we are in our lives I would rather the extra $600 per month to decide what to do with
Posted on 6/1/14 at 7:35 pm to dallastiger55
Frankly, I doubt it matters much either way provided you trust yourself to stay on top of things and pay the monthly payments. If you pay it off now, a 3.9% guaranteed return for the next 3 years (assuming that's how long your loan term is) isn't bad these days. Not great, but not bad. But if you don't, you might find the extra cash useful in other areas. Pretty much a judgement call IMHO.
But if you tend to blow extra money on crap, definitely pay it off with the quickness.
But if you tend to blow extra money on crap, definitely pay it off with the quickness.
Posted on 6/1/14 at 10:26 pm to dallastiger55
quote:
the $600 monthly note
:motherofgod:
Posted on 6/1/14 at 10:33 pm to Mr.Perfect
YOLO
Posted on 6/1/14 at 10:52 pm to dallastiger55
quote:
I understand but where we are in our lives I would rather the extra $600 per month to decide what to do with
Then why the hell are you asking us
Posted on 6/1/14 at 11:11 pm to Joshjrn
+1
That's why I put what I said rather than trying to weigh in on the best option.
He didn't really want advice...he just wanted us to help him convince himself that doing what he wanted to do anyway was also the best way of approaching it.
"Not wanting to pay taxes on stock earnings" just reeked of being a rationalization of wanting to spend the extra 600 a month on misc items.
That's why I put what I said rather than trying to weigh in on the best option.
He didn't really want advice...he just wanted us to help him convince himself that doing what he wanted to do anyway was also the best way of approaching it.
"Not wanting to pay taxes on stock earnings" just reeked of being a rationalization of wanting to spend the extra 600 a month on misc items.
This post was edited on 6/1/14 at 11:12 pm
Posted on 6/2/14 at 2:58 am to Volvagia
This guy never told us the end of his dinar story.
Posted on 6/2/14 at 8:06 am to TheHiddenFlask
Bottom line is lady with dinar is crazy and her son took advantage of her and made her believe that it was worth a ton
He got married and moved away and she's home alone still holding hope but never brings it up anymore
Kind of sad
He got married and moved away and she's home alone still holding hope but never brings it up anymore
Kind of sad
Posted on 6/2/14 at 3:34 pm to dallastiger55
That is depressing.
Now that you have cleared that up.....
I would personally pay off the debt. The freedom of extra cash flow is worth a lot to me.
Smart money says invest the difference. If you haven't maxed your Roth, invest the difference in lending club notes and collect the ~5% spread.
Now that you have cleared that up.....
I would personally pay off the debt. The freedom of extra cash flow is worth a lot to me.
Smart money says invest the difference. If you haven't maxed your Roth, invest the difference in lending club notes and collect the ~5% spread.
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