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Archive for September, 2014

Pay off the car or... not?

September 4th, 2014 at 08:25 pm

So few days ago I've decided to work on paying of the car.

My logic was - market is high right now, maybe it is best to first work on paying off the car, than afterwards, dollar cost average freed up money into SP500, and to designate that savings towards the "pipe dream challenge".

But, since seeing Creditcardfree's post I looked up the Navy Federal special offer of 5% CD (for maximum of $5,000).
Now, while it is not much, it is an awesome rate for a CD, which is guaranteed.

So the logical part of me does struggle with it -- the interest on the car loan is 2%. The interest on a CD is 5%. And it is guaranteed and risk free. So even after taxes, mathematically I would come ahead. So how can I justify paying off the car?

Loss of some income and our car payment.

September 3rd, 2014 at 07:46 am

It looks like my DH's class will get cancelled. They asked him to teach last minute, than opened up another section with another professor, and his section was not open until a week later, like 2 days before class was to begin (there is only one guy at the university that actually puts that info into a computer and he screwed up). So now everyone who wanted the class had registered for another section already and he has only 2 students in his class and it will probably get cancelled.

It will be far harder to pay off our car fast without that extra 7K. Frown

But, it is what it is. We made our first extra payment today - $500. That brought remaining balance from 4K+ to $3,550.