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Financial Planning / Tax Strategies
|Subject: What to do?||Date: 11/18/2000 4:43 PM|
|Author: senort01||Number: 41934 of 121774|
I'm out of college, married, and have a good joint income (approximately 130k / yr.). Of course, I live in a Bay Area so a lot of that goes out the window for rent!
I have maxed out my 401k (my wife is a teacher, so, she doesn't have that option), I plan on getting a roth IRA for both of us also. Besides that I don't have a whole lot of investment outside of a savings account with about 2 months worth of expenses in it and several thousand in a checking account.
That background put aside, I recently came across some decent supplementary income (60k now, 90k over the next months in equal monthly payments).
So, what's my best investment path in the short term? Obviously I'd like to do something with this 60k that is coming on Dec 1st (some of that will go to those brokering the deal) and I don't want to lose too much to taxes.
But, there may be practical applications to it. We just purchased our second car which we financed 23k @ 9.5% for 36 months. We have another car at 1.9% with about 9k left over 1.5 years). Those our only debts (no student loans, no credit card debt, no mortgage; again, I stress I live in the Bay area :) BUT, we do want to buy a house SOMEWHERE in about 5 years.
Should I just pay off the newer car to avoid that 9.5% interest rate? Are there other tax free investments I should be looking into besides 401k and the Roth?
What's the "foolish" path?
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