Using investment

**snafu** · 10-22-2014, 08:44 PM

Is your investment account meant for retirement? Can you pay off your 0% debt at $ 1K per month, November 1st to March 1st? What interest rate after March? Does the new rate backdate to initial purchase? What interest rate, terms and conditions of $ 9K debt? What do you see future increase in value of investment? Will it increase in value as the Index or complete as a CD? What are the tax ramifications of converting investment to cash?

Sorry for so many questions but serious factors that affect a reasonable answer

**disneysteve** · 10-23-2014, 04:17 AM

I'm going to respectfully disagree with snafu.

If you are sitting on $600,000, why the heck are you carrying $9,000 in debt? Your account balance probably varies that much day to day based on the market's performance. Taking out 9K to erase the debt wouldn't even be a blip in the portfolio. As long as you have money easily accessible, write a check and pay it off.

**disneysteve** · 10-23-2014, 06:14 AM

You also asked about having "a bit extra." What do you mean by that? Do you have no emergency fund or short term savings other than this investment portfolio? Give us the big picture here. You shouldn't need to dip into your investment accounts for day to day spending money.

**JohnM.Hendricks** · 11-20-2014, 01:43 AM

Originally posted by Grains View Post

Hi I have an investment account (around $600,000) and I am wondering if I should withdraw some of it to pay off debt and perhaps have a bit extra. I have about $9000 in debt, about 5000 is zero percent until March. I would appreciate any thoughts or suggestions.

Thank you!

You should pay off your debt first because after being debt free you can save more and invest more.

**Wisedog** · 12-19-2014, 02:44 AM

Originally posted by Grains View Post

Hi I have an investment account (around $600,000) and I am wondering if I should withdraw some of it to pay off debt and perhaps have a bit extra. I have about $9000 in debt, about 5000 is zero percent until March. I would appreciate any thoughts or suggestions.

Thank you!

How much do you make in a year?
How old are you?
Is 9k all your debt including your house and cars?

**97guns** · 12-19-2014, 05:44 AM

i dont really think it matters a whole lot, it all comes out of the same bucket. 2 different scenarios 1) you carry the debt making payments from salary and the $600K remains and continues to grow 2) you pay it off, the $600K takes a hit but you save more salary

with 600K in investment, interest or gains alone should be enough to service the loans every month. if you use the monthly gains to service the loans you never touch the 600K or your salary.

i did this for a good 5 years when i had my money in the bank drawing 4-5% in cd's, i took my interest earned every month and paid my rent with it, it covered it in full and i never touched the principal, i was able to save a lot of salary.

Using investment