Financial Question

[RaptorFlipper]

No brainer here. Take advice above. Cars are the worst investment out there. Depreciation is brutal. Get yourself a financial planner or get a buddy who knows how to invest. Too bad you didnt ask this 1.5 years ago, as you are near the end(or at least on the tail end of) of one of the biggest, longest bull markets in history. You can do better investing as long as you are alright in monthly cash flow(which you are as long as you keep your job). Easy answer is just an S&P mutual fund. Over 5 years you will make a descent return, much better than 3.4%. And its a compounded return. Reinvest all profits and dividends. If a liberal democrat gets in white house cash out immediately(actually before), or if Trumps gets booted before term is up. Additionally, on new house you must put 20% down to avoid PMI.

 

[realjones88]

Any money used to pay off your loan can't be used for something else. Personally, I would keep investing as you are young and can eat some losses should stocks head south. Time in the market is more important than timing the market. Plenty of blue chip dividend type stocks that aren't super risky with 4%+ yields.

3.4% isn't terrible...if you are worried about paying interest there are plenty of banks offering 2-3% CDs that would allow you to keep "interest losses" to a min.

If you had good enough credit to buy one house alone the bank won't care at all about a $55K loan...they always approve you for way too much house anyway.

 

[Deleted member 12951]

I would continue to save but having a 6 month emergency fund is something to have. I am working on having 8 months myself. You never know what in life can change but having that emergency fund is a great piece of mind. Yes, it needs to be readily available so it might be in a fund that does not pay the highest interest.

I would keep building and not deplete all your savings, regardless if it pays off a vehicle or a risky investment where your money is tied up.

 

[Jake17]

$860/month

 

[jaz13]

I have a loan on my Raptor even though I have the cash to pay it off. 3% is a crazy low and is barely above inflation. It's almost free money, especially if you do something with the savings.

The other thing is banks only loan you money when you don't need it. Lose your job and see who will lend to you. That's why I take the money when I don't need it because I never know what will happen in the future. $70k in the bank is one hell of a cushion to ride out any financial difficulties. Pay off the truck and the only way to access your equity is selling it.