Ask Terry Questions withdrawing money for car loan

withdrawing money for car loan

By Terry Savage on March 17, 2024 | Financial Planning / Retirement

I took $40,000 out of my TSP retirement fund to pay off a new car, $8,000 was taken out in taxes and I plan to make 1 car payment in full saving $4200 in interest (6.69 rate 48 months) Would I be better making the monthly payments and investing the rest of the money in short term T-bills?

Terry Says

You’ve already made the mistake of giving up years of tax-deferred growth in your retirement plan! What you do now doesn’t really matter!

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