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Investing/Strategies / Retirement Investing
|Subject: Re: Any Advice?||Date: 1/11/2005 10:23 PM|
|Author: preben||Number: 43984 of 76396|
Generally good advise has been given here already. I do think that nobody have touched on the feel-good factor of paying of debt rather than investing as a first step - maybe with the exception of the mortgage. This is just a rule of thumb of course.
So for a radical method I personally might chose in your situation: pay of the car + pay of as much of the house as possible without digging into the non taxed retirement account or a minor emergency fund of course.
With a 6% mortgage and a 2% car loan the average saved interest rate would be around 4% with the amounts we are talking(leaving taxes out of the equation). To get 4% you would have to take at least some risk while investing or lock up the money - but here you get it guarenteed and should you need the money (besides emergency fund) they are still available in your house (loan/small 2nd mortgage in worst case scenario).
Note that I hate debt and seeing interest going to others! ; )
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