re: What to do with $6,400.00 that I wasn&#39;t expecting to have?

Posted by LoveThatMoney

Who knows where?

Member since Jan 2008

12268 posts

Posted on 1/13/17 at 8:18 am to Fat Bastard

quote:
if all u have is a 401k u need another investment vehicle preferably tax free

Yep. You need to be saving at least ten percent of your income, preferably more.

If you invest that and don't put anything ever again in savings, it's going to be worth $36,000 at a modest 6% interest. That will at least buy you a car when you retire. Congratulations, you just won a car thirty years from now.

Posted by VADawg

Wherever

Member since Nov 2011

45253 posts

Posted on 1/13/17 at 8:38 am to Fat Bastard

quote:
so you really think a very young man under 30 should be in a damn annuity? really?

Over a ROTH IRA? The guy said he wanted a RIRA not an annuity.

Fair point

Posted by seawolf06

Member since Oct 2007

8159 posts

Posted on 1/13/17 at 8:58 am to VermilionTiger

quote:
Just under $30,000.

Interest rate is 4.2

Put it all towards the truck.

Posted by secondandshort

Member since Jan 2014

1028 posts

Posted on 1/13/17 at 9:28 am to VermilionTiger

Pentagon Federal Credit Union usually has really good rates. I'd suggest them.

Posted by nogoodjr

Member since Feb 2006

802 posts

Posted on 1/13/17 at 12:25 pm to VermilionTiger

I have a similar take to many. I would have a less expensive vehicle. If you are married to the idea of an expensive ride, I would refinance through Penn Fed. Use the 6,500 as equity and lower your loan length. At the same time I would open a Roth IRA and start putting in SOMETHING every paycheck. When you get salary increases, increase the contribution. Make it part of your life and watch it grow.

If you don't currently have 3 months of expenses in savings, then that trumps all the other suggestions.

Posted by CE Tiger

Metairie

Member since Jan 2008

41587 posts

Posted on 1/13/17 at 8:18 pm to nogoodjr

Refinance the damn truck with a credit union and get a 2% interest rate.

Posted by GFunk

Denham Springs

Member since Feb 2011

14967 posts

Posted on 1/13/17 at 9:25 pm to CE Tiger

That OP thinks "I can handle it," with a 4.2% rate on a $30k auto loan...OP, I don't know you from Adam, but that's a staggeringly dumb decision you're scoffing at us pointing out. It's scary you're 26 years old and:

A.) Aren't smart enough to see how CRAZY/DUMB that note is.
B.) Don't have someone in your circle that cares enough about you to tell you A or that you respect enough to listen when they tell you A.

Regardless, you're asking the wrong questions here. The questions you should be asking are:

1.) How quickly can I exit from a dumbass decision I made to buy the $30K auto @ 4.2%?
2.) What made me think that was smart?
3.) Where can I find a mentor about big purchase decisions and how to improve my decision making with respect to them?

Seriously...there's a reason everyone here is saying the same thing about a car note rate in excess of 4% on a $30K principal amount...

This post was edited on 1/13/17 at 9:27 pm

Posted by CE Tiger

Metairie

Member since Jan 2008

41587 posts

Posted on 1/13/17 at 9:28 pm to GFunk

I mean I don't care if the dude bought an expensive car. A year out of college I bought a 30k car and had a big note. I just don't understand with today's rates how he couldn't get lower than 4%

Posted by GFunk

Denham Springs

Member since Feb 2011

14967 posts

Posted on 1/13/17 at 9:33 pm to CE Tiger

If you don't think there are better places to put that money then we just agree to disagree. Especially at that rate, which ironically we do agree about.

Posted by tlsu15

Capital of Texas

Member since Aug 2011

10073 posts

Posted on 1/13/17 at 10:38 pm to GFunk

I'm also 26 years old. I financed $17,000 at 2.89% on a vehicle and I felt like that was a borderline wreckless decision.

Sounds like OP might not have a great credit history.