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Pay off Car, Save, IRA
I am planning on retiring in February 2018 ... I need some ideas, thoughts on my situation.
I have a 403b paying 3% guaranteed interest. I am putting about $26,000 a year in this account.
I have a car loan balance of $13,800 with .9% interest. The car will be paid off in March 2021. The payment is $299.
I currently have savings of about $30,000. I want to keep at least $10,000 in this account for an emergency fund. This account has interest of about 1%.
My credit card bill is usually high - lots of medical bills... so I am drawing out more than the planned amount to draw out... sometimes $3,000 a month from the savings.
In order to continue putting the $26,000 in the 403b and keep $10,000 in the savings account I need to stick to a really tight budget. I know all that sounds like I have some funds and, I do, but just none to waste.
I would love to pay off the car before I retire.
Is it a wise decision to pay off the car with the savings funds and continue to put the money in the 403b?
My reason for wanting to do this is to free up the cash when I retire.
I want to travel and this might help me to do this.
But I want to know which is the wisest way to use the money..
I appreciate anyone's input.
Thank you
I have a 403b paying 3% guaranteed interest. I am putting about $26,000 a year in this account.
I have a car loan balance of $13,800 with .9% interest. The car will be paid off in March 2021. The payment is $299.
I currently have savings of about $30,000. I want to keep at least $10,000 in this account for an emergency fund. This account has interest of about 1%.
My credit card bill is usually high - lots of medical bills... so I am drawing out more than the planned amount to draw out... sometimes $3,000 a month from the savings.
In order to continue putting the $26,000 in the 403b and keep $10,000 in the savings account I need to stick to a really tight budget. I know all that sounds like I have some funds and, I do, but just none to waste.
I would love to pay off the car before I retire.
Is it a wise decision to pay off the car with the savings funds and continue to put the money in the 403b?
My reason for wanting to do this is to free up the cash when I retire.
I want to travel and this might help me to do this.
But I want to know which is the wisest way to use the money..
I appreciate anyone's input.
Thank you
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