Pay it off?

By gold, silver, bullets and hold tight.

There's a reason why the FED has thrown nearly half a trillion dollars at banks since Sept.

Something is unraveling.

 

$19,500 this year, $20,000 next.

 

I came from a white M3. Just love the color. Almost went Cement OR but I'm glad I got another white one.

 

Oh, jeez. Here we go.

 

Its amazes me the number of people I know that make good money and live paycheck to paycheck. If they missed one paycheck they would be up #$%& creek. Citi bank has a high yield savings account, it just went down to 1.85% from 2.20% and you have access to your money in about 3 business days. Yeah 2% is a joke but better than 0%. My Citi bank CC pays 4% on gas, 3% on travel and restaurants, 2% at Costco and 1% on everything else. I'm getting $900 back this year and paid zero interest. If you have 6 months living expenses in the bank there is no reason to have a loan paying interest on anything besides a house. And then you start investing...

 

hang on...I gotta piss....sip of beer.. let me say something clever...nope "nothing."

 

Then that would be the trolling part because if he had that much, he already knows what to do with the cash.

 

That’s not true at all. You can cash out a CD at any point; you just lose the interest you would have gained when it matures.

 

I read the whole thread, I'm a money nerd.

Agree with the guys that say put the savings to work in the market. However, consider when you may need that money. Probably for a job loss. You know what can cause job losses? A recession. You know what happens to stocks in a recession? I still think some sort of money should stay in a high yield savings account. Everyone has their own number to figure out on that. At some point your savings account balance gets too high and you are wasting money. No commission stock environment lets you start slowly dropping money into a brokerage. Set up something just like your 401k does to your check. Move money to brokerage from every paycheck. Also this approach lets you dollar cost average to some extent. Sometimes you want access to market gains (or losses) without it being tied to retirement. And if a recession hits, start buying all the cheap stock.

CD rates are barely higher than HYSA and you lose interest if you need the money early. And quite frankly, the extra 0.50% you get in a CD is not shit on the small amount you have in there because the rest should be in the market anyway.

 

I think the cement and the silver would be easier to keep clean but the white isn't hard by any means. Worth the "added" efforts. Just have to be careful of salt, at least that shows on the cement color. I don't see the road salt building up on the doors and panels of my truck/car but I clean it enough to probably be fine anyway.

 

It may still be a serious question, like asking for opinions on Kings vs Icons, SCS Ray10 vs F5, curved or straight 50" light bar...

Heck depending on OP's age it may be better to spend the money on a dirt bike or quad. You're only young once...

 

Thankyou TW for the financial advise. What I got from reading all this? First off pay all high interest debt first, like house, credit card and loans. Then keep 5% or at least 5k in bank account and make max contribute if company matches for 401k. Any extra money should be put into cds and stock market and invest into real estate. Lastly if you are older than 55 and havent started then you are screw and just buy a twinturbo setup.

 

FYI - Pay off credit cards and high interest loans first; not necessarily the house. It depends on the interest rate.

 

I get what you're saying but I'm not on board... no offense (seriously). I just disagree.

 

I technically live paycheck to paycheck. I only keep a couple hundred dollars in checking and do not have a savings account other than my retirement. Well I have an Etrade account but recently emptied the remainder out and paid principle.

I am not ashamed of it either. 5 years ago I had a fair amount of debt. I decided to elimimate it and every dollar I can send to pay off principle I do. Today the only debt I have is a mortgage and small CC balance from buying new furniture @0% for 40 months. Both of those will be paid off by March 2021, at 50 years old.

To be fair one of my 2 paychecks each month covers all my bills. The other goes to principle. If I am laid off from my job I'll get 6 months severance, but I am reasonably sure I would be one of the last ones on my team let go.

Is it a gamble? Yes. But instead of having money collecting very little interest in savings, or in stocks at risk of a loss, it eliminated debt that incurs interest.

I emptied the Etrade account because I don't have a good sense the market will continue to grow as it has. I also have 30% of my retirement in bonds, and 10% in foreign stock. All I need from the market is 3.5% returns over the next 16 years to hit my target for retirement savings at current balance and contribution levels.

 

This story shouldn't count. You're being honest.

 

4.74 you are getting raked over the coals man i got a 1.7% the total cost of loan if i don't pay it off early is $1,200

 

The $1.45/day isn't going to be accurate. Every day that figure will change based on the payoff. Figure out how much the total interest over the life of the loan is going to be if you take the full amount of time to pay it off. You've already paid the biggest part of the interest early in the loan. Chances are paying off now won't save you much at all.

Impossible to say without knowing a lot more about your finances. But generally speaking vehicle loans at 2-4% aren't going to kill most people. It is credit card debt at 12-25% interest that is the killer. If you can pay it off and still have a substantial safety net it won't hurt. Won't help much at this point either. But a lot of people would be better off keeping that $11k in the bank to pay for emergencies. If you have to spend $7K to replace a roof on your home unexpectedly having that $11K in the bank to cover it would be better than paying off the truck and having to borrow the $7K at 8% interest to cover the roof.

I like to set up the loan for a longer period to get the monthly payment really low. That way I can pay extra during most months and other months pay the minimum. I always pay the minimum around Christmas and in April when taxes are due. The rest of the year I'll pay $50-$150 extra. Once I get the payoff down to an easily manageable amount then I'll just pay it off.

 

Same here. NO debt at all. I collect interest don't pay it. The biggest yearly expense is our Insurances. We pay in full for all our insurances once a year. we don't spend all of our income by any metric.

Good habits in my 20's and thirties allowed for an easy retirement at 53 and moved to SC a state with low taxes and minimum government intervention. . WIN WIN
Have a couple of toys to play with....

 

Final payment processed today. She’s mine. And new headlights to celebrate