I retired 20 year ago this year. I try and learn what I can about things that will effect my standard of living, and talked to guys I know that had already retired. I didn't find anyone that even knew what they were doing let-alone what I should do. We made some good choices, and some not so good, but nothing that was devastating enough to force me back to work. Don't take anyones opinion as fact, check it out for yourself!!! spending a few hours on the computer learning about SS, Medicare, regulations, tax regulations, health insurance, investment options, planning for HIGHER INFLATION, etc. beats the heck out of working at Walmart when you are not able!!
Just looking at basic math, if you’re OK with debt, you’ve already rationalized your answer. A lot of people don’t invest the money but just spend it and go further into debt. Kind of like those who say they pay their credit card off every month, but get rewards points and airline miles. Having zero debt is a pretty cool feeling.
6 Month Special Certificate/IRA Certificate (5 DAYS ONLY)
This is Tinker Federal credit Union.
| Minimum Balance | Dividend Rate | APY* |
|---|---|---|
| $1,000 for share cert. New Deposit Only | 4.94% | 5.05% |
Just renewed a CD this week for 12 month 5.25% apr
I have cashed several checks for 20,000 only 1 time did bank complain it left them a little short.
The nice lady at my credit union finally talked me into it,,,
Honestly, I'm not certain why I was so reluctant.
I moved most of my savings account into a 4.75% 11 month CD,,,
It works out that the dividends can be harvested monthly,,,
Now my new car payment is being made from the CD.
I believe my reluctance was in putting my money "out of reach" for a time,,,
My paranoid brain kept saying, "What if you have an emergency?"
Oh well, live and learn even at my advanced age.
Aarond
.
Honestly, I'm not certain why I was so reluctant.
I moved most of my savings account into a 4.75% 11 month CD,,,
It works out that the dividends can be harvested monthly,,,
Now my new car payment is being made from the CD.
I believe my reluctance was in putting my money "out of reach" for a time,,,
My paranoid brain kept saying, "What if you have an emergency?"
Oh well, live and learn even at my advanced age.
Aarond
.
I don‘t know your numbers on the savings or terms of the car loan but you might look at the amortization chart for the car loan. You might be better off paying off the car and having less in savings, especially if you just purchased the car. You might be surprised at how little of the car payment is actually going to the principal.
No surprise at all,,,
It's a 0.9% loan.
$297.61 of $307.18 goes to principle,,,
Only $9.57 goes to interest.
The good people at my credit union are very helpful,,,
They assisted me in running the math to determine which is better.
I could easily pay off the car from what I put in the CD,,,
But the dividend loss each month would be well over that $9.57 figure.
Sometimes it's best to keep your savings (CD) investment earning dividends,,,
Rather than use them to pay off a low interest loan.
Aarond
.
Sometimes people are disciplined to pay the obligated loan, but even if they could pay cash for the vehicle they would never pay themselves that same payment back and never touch it.
Wouldn't it be better to repay old loads with devalued dollars? No debt is better and then invest but it doesn't work that way for everyone.
