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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Poll: Help me figure it out Date:  12/28/2013  11:41 PM
Author:  aj485 Number:  307613 of 313043

I was thinking the stock market will soar next year.. and I could make some sweeping gains by investing it.. am I being too naieve?

Are you willing to take the risk that the stock market could also tank, and you could end up with half of the amount that you invested?

I would strongly suggest that the first thing that you do would be to put away money for an emergency fund, pay off the retirement loan and the credit cards.

For the investment property - if it's not cash flow positive, and you can't refinance it (possibly using some of the cash you have to pay down the loan amount) so that it can be cash flow positive, then I would strongly suggest selling it. Assuming your screen name indicates that the investment property is in Texas, too, then your income tax deductions are saving you, at most, 35% of every dollar you spend. If you want to spend money that way - I'll tell you what, you can send me money, and I'll send you back 80%. You will end up with more money in your pocket and fewer headaches than keeping the investment property.

After you pay off the credit card and retirement loans, fund your emergency fund and possibly put some of the money towards refinancing the investment property, then either invest the rest, or put it into a savings account to save up until you have enough to pay off either the investment property or your primary residence mortgage.

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