ok I have a tax refund coming of $1724 from the feds. ($248 from the state) Originally I was going to put this in an acct to fund my Roth for 2007. However in the last few weeks, my car died,a nd I need to get a replacement car.
I have 14K in ING in the main acct, as well as a few subaccts in there. One of my subaccts is for a Roth (to be funded all at once) and another one is for car. I currently have $500 in the "car" one.
I could easily clean out ING and pay cash for a car, however I do not want to lose the $50/month interest income that I am currently getting.
Anyways long story short, would you use the tax refund to fund the car acct or the Roth. I"m worried that if I do not fund the retirement acct, or at least get a head start with it, that I may never get to fund it for 2007, especially with a car purchase looming. Also my employer does not offer a 401K or anything like that (I hope to find one that does so that can change), and given my age (I'm almost 27) I think it's stupid to not start saving for retirement.
In my situation, would you put the refund towards the car or Roth, or split it in some way?
A few more details about the car. The cars I'm looking at right now are Honda Civic, Toyota Corolla, and perhaps TOyota Prius. Most of those cars do not have a substantial price difference between new and used, so I might as well buy new. However if my parents are willing to sell me their 1999 Subaru Forester (the car I am borrowing from them right now) for a reasonable price, I may just buy that until I can pay cash for a newer car. If I am going to buy a used car (other than the Subaru) 2 years is the oldest I am willing to go,a nd I want a dealer backed warantee.
Sorry for the long ramble, but what would you do with the refund in my situation?
I have 14K in ING in the main acct, as well as a few subaccts in there. One of my subaccts is for a Roth (to be funded all at once) and another one is for car. I currently have $500 in the "car" one.
I could easily clean out ING and pay cash for a car, however I do not want to lose the $50/month interest income that I am currently getting.
Anyways long story short, would you use the tax refund to fund the car acct or the Roth. I"m worried that if I do not fund the retirement acct, or at least get a head start with it, that I may never get to fund it for 2007, especially with a car purchase looming. Also my employer does not offer a 401K or anything like that (I hope to find one that does so that can change), and given my age (I'm almost 27) I think it's stupid to not start saving for retirement.
In my situation, would you put the refund towards the car or Roth, or split it in some way?
A few more details about the car. The cars I'm looking at right now are Honda Civic, Toyota Corolla, and perhaps TOyota Prius. Most of those cars do not have a substantial price difference between new and used, so I might as well buy new. However if my parents are willing to sell me their 1999 Subaru Forester (the car I am borrowing from them right now) for a reasonable price, I may just buy that until I can pay cash for a newer car. If I am going to buy a used car (other than the Subaru) 2 years is the oldest I am willing to go,a nd I want a dealer backed warantee.
Sorry for the long ramble, but what would you do with the refund in my situation?
Comment