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Invest or pay off car
Posted on 4/1/20 at 8:36 pm
Posted on 4/1/20 at 8:36 pm
Fortunate to recieve a quarterly bonus for about 20k after tax. Coincidentally I also owe the same amount on a car loan at 4%.
Would you pay off the whole loan or dollar cost average it all in the market? Half and half? Wife wants to pay off the car, I want to invest it all over the next quarter.
Mortgage is at 2.75% so I don’t want to throw extra at that. We are otherwise financially in great shape. Don’t see any other good short term uses for it...
Would you pay off the whole loan or dollar cost average it all in the market? Half and half? Wife wants to pay off the car, I want to invest it all over the next quarter.
Mortgage is at 2.75% so I don’t want to throw extra at that. We are otherwise financially in great shape. Don’t see any other good short term uses for it...
9
Posted on 4/1/20 at 8:40 pm to geauxbears08
Keep the cash. Economy is unstable
Posted on 4/1/20 at 8:43 pm to geauxbears08
In my opinion, right now 20k in cash is about twice as valuable as the car.
I would keep and invest. The car will depreciate. The cash, in today’s market will only grow.
Don’t know how long the loan left is, say 2-3 years. If you get by just fine, at the end of the three years you will have your car, and let’s say 30 in cash.
I would keep and invest. The car will depreciate. The cash, in today’s market will only grow.
Don’t know how long the loan left is, say 2-3 years. If you get by just fine, at the end of the three years you will have your car, and let’s say 30 in cash.
This post was edited on 4/1/20 at 9:01 pm
Posted on 4/1/20 at 8:43 pm to Tshiz
Agreed, at least for a few months then decide.
Posted on 4/1/20 at 8:43 pm to geauxbears08
No debt is a very good thing! Take the amount of your car note and dollar cost average in securities over the term of your car loan. You both Win. 
This post was edited on 4/1/20 at 8:45 pm
Posted on 4/1/20 at 8:47 pm to geauxbears08
If you’re not having trouble paying the notes, don’t pay it off.
If you invest, consider strong companies with a great future and don’t go speculative. Also consider longer term like at least 2 years.
If you invest, consider strong companies with a great future and don’t go speculative. Also consider longer term like at least 2 years.
Posted on 4/1/20 at 9:29 pm to geauxbears08
Paying it off guarantees a 4% return. I am not sure any investment over the next three months can do that. I use three months because you will presumably you get another quarterly bonus in three months. You can take the money you were paying on a monthly note and DCA.
This post was edited on 4/2/20 at 7:10 am
Posted on 4/1/20 at 10:15 pm to go ta hell ole miss
quote:
Paying it off guarantees a 4% return.
You remove a liability, which is positive. By investing what you were putting in your monthly note, you are dollar cost averaging , which is exactly how you should be investing in this type of market. At the same time, you are guaranteeing a 4% return.
No debt is what your long-term goal should be. Owing no one is a very good feeling and wise. Good luck to y'all......
Posted on 4/2/20 at 7:37 am to geauxbears08
I’d invest in market. Probably an s&p index fund.
Posted on 4/2/20 at 7:58 am to geauxbears08
If you already have an emergency fund set aside. Take that guaranteed 4% return.
Posted on 4/2/20 at 7:58 am to geauxbears08
How secure are your jobs? How big is/do you have a rainy day fund already for in the event that y’all were to lose your jobs?
If you’re fine on these fronts already then invest the money. All of it. If you’re concerned about your jobs/the size of your cushion sit on it. All of it.
Either way continue to only pay notes on the car.
If you’re fine on these fronts already then invest the money. All of it. If you’re concerned about your jobs/the size of your cushion sit on it. All of it.
Either way continue to only pay notes on the car.
This post was edited on 4/2/20 at 8:00 am
Posted on 4/2/20 at 8:58 am to geauxbears08
quote:
Coincidentally I also owe the same amount on a car loan at 4%.
In a month trade the car in for a new one for 0%. Premium price for a used one and rock bottom price for a new one.
Posted on 4/2/20 at 9:00 am to go ta hell ole miss
quote:not sure what field he's in but i think bonuses for next quarter will be prettyyyyyy slim
I use three months because you will presumably you get another quarterly bonus in three months.
Posted on 4/2/20 at 9:39 pm to LSUisBetterthanU
quote:
I would keep and invest. The car will depreciate. The cash, in today’s market will only grow.
Are you serious? What does the depreciation of the car have to do with anything?
The monthly note is the same no matter the current value of the car.
Cash in todays market will only grow???? What the heck does that mean?
You must be one hell of a Financial Advisor
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