Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Happy holidays all,

I'm toying with some creative investing so please forgive the long post. I'd like to gather comment, if you're willing to share.

I have been saving my maximum IRA contribution in a taxable savings account (with Vanguard) such that I save enough so that right after 1 Jan I can transfer it into our IRA for 2008. I have that savings in a money market fund, so it's basically risk free but with VERY LOW interest. Considering how the market is jittery, I don't want the money to be worth less on 1 January than what I've actually put into it, so that's why I have the MMF.

I also owe, coincidentally, about my max IRA contribution for wife and me what we owe on our car. We financed with 6.65 APR.

My idea: Pull the money from the IRA savings account and pay our car note and save so that I can make the IRA contribution later in 2008 tax year.

Why? I am sure I earn pay more in interest on the car note than I earn in the MMF. I think I'm losing money to interest on note by keeping the IRA savings in the MMF. I will of course have the discipline to pay off the IRA contribution for 2008 with the money previously going to the car note. Besides, I think that will feel much better when I'm paying all that money into retirement, rather than to Toyota!!

Thanks and enjoy the season!
g
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.