Paying off vehicle
Terry, I owe about $11.500 on my truck, it’s payoff is 09/2024. I have $41,000 in savings, and 2 separate IRA accounts worth $30,000 and $315,000. I also owe $57,000 on my home. I’m retired and between Social Security and my TRS pension net $4100 per month. WOuld you suggest I pay off the truck from savings and use the remainder of savings and my smaller IRA to pay off the mortgage? I have no other debt. Appreciate Any advice.
Terry Says
Big question comes to mind — but then I’m a woman. If you’re retired, do you still need the truck?? Just askin’!
If not maybe trade in for a smaller car, cash — no payments?
Most of your other questions depend on the interest rate you’re paying.
1. If the truck loan is over 3%, pay it off.
2. If the mortgage rate is over 5%, yes pay it off.
BUT don’t take the money out of your IRA to do that. You’ll need it later on. Do you know how it’s invested –and what exposure you have to the stock market?
And don’t use up all your liquid cash to pay down the mortgage debt — especially if its less than 4%.
And one more thing; it’s easier to earn more than cut back. Can’t you get a part-time job and use the extra money to put additional money toward your mortgage every month? That’s the sensible way to approach it — especially if you plan to stay in your home.
