Ask Terry Questions What to do with 10,000.00

What to do with 10,000.00

By Terry Savage on January 29, 2020 | Financial Planning / Retirement

Hello Terry!
I cashed in a insurance policy of 10k and was wondering what to do with it? It’s in a checking account With 2% interest. I would love to have it generate more interest. I am 58. I just bought a new car with a monthly payment. Balance around 14,000. Low interest 4.5. I Put in the 6500.00 allowed for my IRA deposit.Balance in IRA acct around 50,000. My personal CC debt 1500.00.
I own a retail business of 27 years. Would like to close it in 3 years.
Thanks very much!

Terry Says

Well, I think your choices are pretty obvious.
1. Pay down your credit card debt and don’t run a balance ever again.
2. Leave the rest in a money market account or that checking account with a 2% interest rate. See if you have the discipline not to touch it. (By the way, 2% is an amazing rate for a checking account — are you sure?)
3. A car loan at 4.5% is NOT low interest! Most new cars come with zero interest rate financing. If you “just” bought it, you might want to complain! They are making a lot of money on you!
4. Make sure your IRA is invested appropriately — that’s where you should be looking for growth.

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