Theres some smart dudes on here, so I figured I would ask this question as I dont really know what to do with it. No kids, no wife, no mortgage. My only significant bill is my car at $360 a month. Question is, should I pay off a few grand on my car? CD? I read the treasury has notes you canbuy but knowing how the government works, im kinda iffy on that. Maybe stocks? Shares of apple or coke or something like that?
This is one of the most important factors in this scenario. It will determine how urgent/aggressive you need to be in paying off the car. Also, in order to give you sound financial advice, you'll need to give us a little more info. How much do you make in a year and how much do you have saved up? Do you have any other debts at all? What are your short term and long term financial goals?
Don't pay off the car loan at that rate. That's like free money. Keep paying the 1.75% and use the extra money to invest at much more than 1.75%. One Golden rule is: Money is worth more now than in the future. So don't use you money now to pay off that extremely cheap loan. Invest it.
I'm in the same position almost. I just have money sitting in the bank but I'm pretty sure I could be putting that money to more better use investment wise.
Offer some money to 713 so his mommy and daddy don't have to pay his gas bill. Ask him to leave CF for the charity.
Computer classes. Or volunteer and donate to a charity with the intent of networking and eventually getting into leadership roles. Maybe critically assess your career goals, find out where you come up short skills-wise, and get some relevant professional certifications. You could also stick 60% in blue chips, 30% in some kind of bond fund, and 10% in money market accounts.
If you have enough money to start paying down the loan, you certainly have enough money to invest in something that will make more than 1.75%. As Heyp wrote, 1.75% is like free money. You can invest in something like an income fund such as FKINX and make 6-8%.
As somebody with a background in Economics and Finance, I'd agree with the more reputable posters above.
I would do some traveling. Going around the world is great, or if you always wanted to go somewhere, you should do it.
That's a low rate on your car loan, I wouldn't pay it off. Max out your IRA, Roth if you're of younger age. Put it in some low commission mutual funds. Large and mid US and international cap funds, and bonds. After you do that, save and spend it how you wish. Investing in real estate, ie a house, is a good idea with the low mortgage rates. But really, save for retirement, you're not getting any social security.
