Finance 101

[Trompe le Monde 1,107]

So you are getting a bonus that's pretty decent (but not going to change your life), is it better to:

1. Retire a car loan

2. Invest it in some shares you have your eye on

Any opinions?

[arwensun1965 1]

Pay the car loan then save and invest.

[homesick_american 1]

Depends...would you save more by avoiding the remaining interest payments on the loan than you'd make from investing? Also you need to consider if there's a penalty for settling the car loan early...some loans have that particular sting in the tail!

[payxibka 10,048]

retire the car loan.... and then with the monthly payment you would have paid on the loan begin a structured investing program

Edited April 17, 2007 by fwaguy

[Otto 83]

So you are getting a bonus that's pretty decent (but not going to change your life), is it better to:

1. Retire a car loan

2. Invest it in some shares you have your eye on

Any opinions?

Depends on your interest rate (on the loan) if you can get more return on an investment, more power to ya..that's the smart direction... If the interest rate is high - I'd retire it.

[Trompe le Monde 1,107]

There's no penalty for settling the loan early (though I'd have to double check)

I'm paying 4% interest on about a $17k loan - I owe something like $10k on it

Obviously it's impossible to accurately predict the future with shares or I'd already be a millionaire, but I have a strong gut feeling about it. Still, there is risk involved.

I also want to buy property sometime in the next 3 years or whenever the market calms down and would like a nice down payment

Maybe I should call Suze Orman.

[Hilarious Clinton 452]

So you are getting a bonus that's pretty decent (but not going to change your life), is it better to:

1. Retire a car loan

2. Invest it in some shares you have your eye on

Any opinions?

Depends on your interest rate (on the loan) if you can get more return on an investment, more power to ya..that's the smart direction... If the interest rate is high - I'd retire it.

yup. but I would lean towards retiring the loan

[j-manu 0]

If only I worked for Goldman Sachs and got a $622,000 bonus. I would then retire the loan and create a new one