Skip to main content
No. of Recommendations: 12
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.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
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.