Invest or pay of debts? Ideas needed.

[killer2021]

100% to debts, smallest to largest. Easy. Don't take out anymore loans. If you need another car, save & pay cash or just buy a used car for like 5k. Debt (even at low interest) adds up to alot of money over time. You want to be making money on your money, not paying to borrow it.

[treasurekidd]

Thanks but I should have mentioned the mortgage will be paid in 3-4 years, as will the other debts if I continue on the current path.

Than in that case, invest away!

[bmw335xi]

Originally Posted by RMD3819

The debts:

$70K @ 5.1% (Mortgage)
$10K @ 4.15% (Car)
$17K @ 1.9% (Car)

Would you pay some or all of these off or invest the equivalent amount instead?

I cannot take the mortgage interest deduction.

I would refinance your home, 5.1% interest! I would payoff the auto loan at 4.15% and I would keep the auto loan at 1.9%. The amount to invest depends on how much cash you have available.

[RMD3819]

Originally Posted by 20yrsinBranson

Details are helpful.

Do you also have consumer debt or are these all of your financial obligations?

20yrsinBranson

No other debt.

The wife and I are empty nesters and will retire in about four years.

[RMD3819]

Originally Posted by bmw335xi

I would refinance your home, 5.1% interest! I would payoff the auto loan at 4.15% and I would keep the auto loan at 1.9%. The amount to invest depends on how much cash you have available.

It would not pay to refinance as there is only about four years left on the mortgage.

Thanks for your input.

[crestliner]

I would talk to a financial planner but NOT sign a thing he wants you to,,,,lol

[debtmonger]

I don't believe that you should ever borrow money for a car... so I would pay both off, regardless of the interest rate. I paid off my mortgage during the middle of the last recession. One of the best day's of my life.

[MrRational]

xx

[mortimer]

Originally Posted by debtmonger

I don't believe that you should ever borrow money for a car... so ....

Agreed. Don't get me started ... at least it's better than leasing one !!!

Here is another angle: _____ Do you have any investments at all?

If not, you need to learn about investing and you cannot learn about it from books and video.
You have to learn by doing. Start small and invest a few thousand in 5 or 6 different things.
It doesn't matter if you make money or lose money at that level. Just learn about buying/selling.
It also doesn't matter what you invest in. Start with things that you know about.

For instance, if you ride a motorcycle, buy Harley. If you own a Ford, buy stock in that.
Do you frequent Starbucks or McDonalds or shop at Krogers or Whole Foods? There's an idea.

Again, once you have learned the mechanics, you can worry about buying the best stuff.
If you invest $3,000 and lose $500 or so in a few months, it isn't going to kill you or effect
your standard of living. Get used to receiving a dividend or two.

Don't buy gold though. It really pisses off some of the natives on this forum.