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Posted: 5/18/2022 4:10:57 PM EDT
I owe 24 months at 3.9% on an a car loan. ($480 p/month) should I pay it off and continue putting the $480 in the market or leave it in savings?
I'm leaning towards putting it in the market.
Link Posted: 5/18/2022 4:26:58 PM EDT
[#1]
I'm leaning towards not paying off a 4% loan early in 8% inflation.
Buy I bonds if you decide not to go stocks.

https://www.ar15.com/forums/general/I-Bond-rate-going-to-9-62-/133-2545111/
Link Posted: 5/18/2022 4:28:28 PM EDT
[#2]
Quoted:
I owe 24 months at 3.9% on an a car loan. ($480 p/month) should I pay it off and continue putting the $480 in the market or leave it in savings?
I'm leaning towards putting it in the market.
View Quote


This might be the first time I’ve said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.
Link Posted: 5/18/2022 4:53:12 PM EDT
[#3]
Quoted:
I owe 24 months at 3.9% on an a car loan. ($480 p/month) should I pay it off and continue putting the $480 in the market or leave it in savings?
I'm leaning towards putting it in the market.
View Quote

If it's a fixed-rate loan, keep it.  Pay off an variable-rate loans.  I'd put everything else in gold and silver.  Stocks ain't done crashing yet.
Link Posted: 5/18/2022 5:49:54 PM EDT
[#4]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


This might be the first time I've said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
I owe 24 months at 3.9% on an a car loan. ($480 p/month) should I pay it off and continue putting the $480 in the market or leave it in savings?
I'm leaning towards putting it in the market.


This might be the first time I've said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.
I have the Jeep loan and 2 years left on my house @ 3.9% then debt free.
Link Posted: 5/18/2022 6:28:43 PM EDT
[#5]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


This might be the first time I've said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.
View Quote
Also known as market timing. You don't know when the market hits bottom until a while after the fact. And then you've missed the initial gains in the recovery, which is often where the best increases occur.

Agree that Apple and Google are on sale. As Buffet says, "Be greedy when people are fearful and be fearful when people are greedy." People are fearful right now.
Link Posted: 5/18/2022 7:11:17 PM EDT
[#6]
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Quoted:
Also known as market timing. You don't know when the market hits bottom until a while after the fact. And then you've missed the initial gains in the recovery, which is often where the best increases occur.

Agree that Apple and Google are on sale. As Buffet says, "Be greedy when people are fearful and be fearful when people are greedy." People are fearful right now.
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Quoted:
Quoted:


This might be the first time I've said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.
Also known as market timing. You don't know when the market hits bottom until a while after the fact. And then you've missed the initial gains in the recovery, which is often where the best increases occur.

Agree that Apple and Google are on sale. As Buffet says, "Be greedy when people are fearful and be fearful when people are greedy." People are fearful right now.


This your first time?     People aren’t fearful yet.    Not even close.  
“Mildly concerned” at most.

“Market Timing” is what’s causing this right now.  It’s what Buffet was referring to.     It’s not a bad word.
Link Posted: 5/18/2022 7:22:37 PM EDT
[#7]
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Quoted:

This your first time?     People aren't fearful yet.    Not even close.  
"Mildly concerned" at most.

"Market Timing" is what's causing this right now.  It's what Buffet was referring to.     It's not a bad word.
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No, not first time, or even the second or the third, but thanks for asking. And while market timing isn't always a bad word, a lot more people think they can do it than actually can. And those who can, rarely do it consistently. And I've read Buffet's stuff too. I know what he was talking about.
Link Posted: 5/18/2022 7:23:33 PM EDT
[#8]
Quoted:
I owe 24 months at 3.9% on an a car loan. ($480 p/month) should I pay it off and continue putting the $480 in the market or leave it in savings?
I'm leaning towards putting it in the market.
View Quote

With inflation at 8-10% I wouldn't pay off a 3.9% fixed rate note, especially since you've already paid most of the interest on it up front.
Link Posted: 5/18/2022 7:25:05 PM EDT
[#9]
These are buying opportunity days.

Never stay out of the market.
Link Posted: 5/18/2022 9:32:38 PM EDT
[#10]
Run the loan until it’s payed off

If you got spare cash buy some I bonds with it and build a reserve chunk in that for unexpected life situations and use it when you need another car instead of getting another loan
Link Posted: 5/18/2022 10:28:07 PM EDT
[#11]
I don't see any reason to jump into this market. I'd rather miss a tick or two on the way up than jump in on the way down. JMHO

You'll know it's time when bad news doesn't move the market anymore, or Potato is gone .
Link Posted: 5/18/2022 11:41:29 PM EDT
[#12]
I decided im holding off on putting in extra for now and going to focus on other investments

I may dump some in my roth later. Got a while...
Link Posted: 5/19/2022 6:51:29 PM EDT
[#13]
Keep the loan for now. Buy into the market (stocks and bonds) when the Fed is done hiking rates. The Fed insider traders will hopefully show their hands again just like when they sold off right before the rate increases (to not show partiality). I was a dumbass for not taking the cue then. The falling knife hasn't hit the floor yet.
Link Posted: 5/27/2022 2:21:00 AM EDT
[#14]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


This might be the first time I’ve said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
I owe 24 months at 3.9% on an a car loan. ($480 p/month) should I pay it off and continue putting the $480 in the market or leave it in savings?
I'm leaning towards putting it in the market.


This might be the first time I’ve said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.



just add another 25 or 50 bucks to the payment.. keep the loan
Link Posted: 5/27/2022 8:55:13 AM EDT
[#15]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


This might be the first time I've said this, but put it in the Market.   Apple and Google are on sale right now.   Dollar cost average those two.

Save mucho dinero for when the Market completely capitulates.

Also, stop accumulating more debt.
View Quote
Pre Covid we had really good economic growth. Post covid was all government and fed stimulus which has ended. Apple was about $80 a share in early 2020. Now it's $143 and we are going into a recession. I think it could go down a lot. People without jobs don't buy new iphones. I've been looking at a 5 year chart and only buying stocks or etfs that are below that 2020 pre Covid price. The spike in stock prices after the covid stimulus is the stupidest thing I've ever seen. The real economy was wrecked but stocks and real estate spiked to record levels. The fed and the government need to stay out of the markets. Stock prices should be based on earnings not fed policy or government stimulus.
Link Posted: 5/27/2022 9:05:12 AM EDT
[#16]
rule of thumb, if loan interest is under inflation then do not pay extra on it.
Link Posted: 5/27/2022 5:16:59 PM EDT
[#17]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Pre Covid we had really good economic growth. Post covid was all government and fed stimulus which has ended. Apple was about $80 a share in early 2020. Now it's $143 and we are going into a recession. I think it could go down a lot. People without jobs don't buy new iphones. I've been looking at a 5 year chart and only buying stocks or etfs that are below that 2020 pre Covid price. The spike in stock prices after the covid stimulus is the stupidest thing I've ever seen. The real economy was wrecked but stocks and real estate spiked to record levels. The fed and the government need to stay out of the markets. Stock prices should be based on earnings not fed policy or government stimulus.
View Quote


Not exactly but close. In late 2019 pants were being shat as long and short term bond yields inverted indicating a recession was brewing. Then covid lockdowns conveniently came along giving the gov an excuse to crank up the money machine and flood the economy with workless cash hoping the 2019 chickens wouldn't come back home to roost.

We now see that you can stall but not eliminate inevitable economic downturns using cash injections. Massive everything bubbles, worker shortages, drowning national debt, and 70's style inflation are the result but it did give us a mini boom and kicked the 2019 (2008?) can down the road to deal with at a later date (we are here). So back to the future we go to pick up where we left off.

I do agree that the gov needs to step back and let the chips fall where they may instead of being puppets of the central banks and big corp. Selective gov. bailouts and stimulus kill competition, capitalism, and the free market not to mention turns every politician into a lobbyist magnet and insider trader with policies pushed to pad his/her wallet.
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