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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!
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