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What to do with end of year bonus
Posted on 1/15/17 at 12:52 pm
Posted on 1/15/17 at 12:52 pm
Trying to decide whether to simply invest a certain amt each month to DCA, or pay off low interest loans (i.e. Car loan and work "investment" loan), or to put large amt towards mortgage. None of the rates are higher than 4.1%.
TIA
TIA
Posted on 1/15/17 at 1:14 pm to quadfest
Not enough info. Amount of bonus, amount of debts, emergency fund status, retirement progress, etc before anyone can offer accurate advice
Posted on 1/15/17 at 2:04 pm to Costanza
(no message)
This post was edited on 1/15/17 at 8:54 pm
Posted on 1/15/17 at 2:47 pm to quadfest
Sounds like you're in great shape. If it were me, I'd scrape together another 10k and pay off the car and the 50k loan. You're already maxing your tax advantaged accounts with extra money to invest.
Think of it this way. If the car was paid off, would you go borrow 20k against it to invest with?
Once you're down to no payments except for mortgage, you'll have the flexibility to do whatever you want with the additional monies. Congrats, you're killing it!
Think of it this way. If the car was paid off, would you go borrow 20k against it to invest with?
Once you're down to no payments except for mortgage, you'll have the flexibility to do whatever you want with the additional monies. Congrats, you're killing it!
Posted on 1/15/17 at 3:48 pm to quadfest
quote:tell me more
work "investment" loan
This post was edited on 1/15/17 at 3:48 pm
Posted on 1/15/17 at 3:57 pm to quadfest
Pay off the vehicle and use the rest to get that personal loan down to 10K... Or vice versa, depending on the interest you're paying. Then, just use the money you would be paying on those notes to get further into the market.
Posted on 1/15/17 at 5:21 pm to prostyleoffensetime
My interest rates for these are 2.9 and 3.75. Is there an argument to be made for these being "good debts" with low interest rates, and instead of paying them off, just invest the money in vanguard, esp if avg 8-10% returns.
I have been putting an extra $50 towards the car each month an extra 300-600 each month for the $50K loan.
I have been putting an extra $50 towards the car each month an extra 300-600 each month for the $50K loan.
Posted on 1/15/17 at 5:34 pm to quadfest
quote:
My interest rates for these are 2.9 and 3.75. Is there an argument to be made for these being "good debts" with low interest rates, and instead of paying them off, just invest the money in vanguard, esp if avg 8-10% returns.
I have been putting an extra $50 towards the car each month an extra 300-600 each month for the $50K loan.
There's an argument, sure. I just don't find it that convincing. If we weren't at all time highs in the market right now, I'd probably give that approach some serious thought. Obviously, you're going to be fine regardless, but I prefer to keep things simple. Do you think older you would look back and wished to have a car note or this other debt?
Again I ask, if you didn't have the car loan or the other, would you go borrow 70k at those interest rates to put that money in the market? I don't know anyone who would. That's the decision you're making.
This post was edited on 1/15/17 at 5:37 pm
Posted on 1/15/17 at 5:46 pm to Costanza
Excellent point - never thought about it that way. Maybe I do need to give serious consideration to paying off the debt (outside the mortgage for now) and hold off on large investments for now (will cont to make routine deposits)
Posted on 1/15/17 at 8:35 pm to quadfest
Have you thought about putting in a pool?
Plus if there's enough left over, you could fly us all down there to help dedicate it.
Plus if there's enough left over, you could fly us all down there to help dedicate it.
Posted on 1/15/17 at 9:19 pm to Huey Lewis
Jelly of the month club, the gift that keeps on giving the whole year 'round
Posted on 1/16/17 at 7:29 am to Huey Lewis
Why does he need 2 pools.
My thought is after you have your emergency fund it depends on your debt tolerance. There is a certain peice of mind knowing that you don't owe anyone. But is that worth missing out on time in the market?
But if you don't continue to take on more debt you could double down on savings post payoff. The fact is this plan rarely works as something always comes up.
My thought is after you have your emergency fund it depends on your debt tolerance. There is a certain peice of mind knowing that you don't owe anyone. But is that worth missing out on time in the market?
But if you don't continue to take on more debt you could double down on savings post payoff. The fact is this plan rarely works as something always comes up.
Posted on 1/16/17 at 2:20 pm to quadfest
(no message)
This post was edited on 8/22/17 at 2:42 am
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