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MuseChaser · 05-01-2017, 10:12 PM

The answer about what to do is.. as usual.. .it depends.

What's the interest on your student loans? Is that interest deductible against your income tax (almost certainly, YES)?

What rate do you think you could make if you put some of that money in a Roth IRA? (no tax on the money it makes, ever) How about in a traditional IRA? (deductible against your income on the way in, but you'll pay tax when you start withdrawing it in your retirement) Chances are, you'll probably be able to make more than you're paying in interest, AND you can keep the deduction for your student loan interest while you continue to pay off your loans.

What amount of a car loan is deductible? NONE.

What's the return on your investment in a car, especially a new one? NONE. You start losing money IMMEDIATELY.

So, from a purely financial standpoint, it makes sense to NOT pay off your student loan with a huge one time payment, but use some of your 39K to invest in your future. Continue driving the cheapest car that'll get you where you need to go. Keep investing money as your cash/accounts-on-hand crest whatever your comfortable immediately-accessible threshold is.

Only YOU can decide what the practicality-to-enjoy-your-money/life ratio is for you.

No matter what I made, I always lived as if I didn't make that much, and never as if I made more than 50k/year. When I hit 55, I was free of debt, owned my own house, and was pretty much set for life. NOW I'm driving an FR-S ( but a 2013.. lol.. I'm still a cheapskate), a 560SL, and a Piper Cherokee. Yeah, I could have spent more earlier, but you know what? I had a great time throughout my life. Just depends what YOU need to enjoy your life.

And.... don't take the kid thing lightly. It's not about having enough money to have a kid... it's about providing a healthy family for the child. A securely married Mom and Dad is one of the best things you can give a child. I'm not saying that based upon personal dogma of any kind, although yes, it's my religious belief. I'm saying it based upon objective observation of the literally thousands of students I've taught in my 32 year career. The happiest, most confident and capable students USUALLY (not always) came from traditional married Mom and Dad households. YES, there are plenty of exceptions to that observation, and it takes a GOOD mom and dad to have a good kid. However, it takes a truly EXCEPTIONAL single parent to give a child everything they need.

Sorry.. soap box off.

05-01-2017, 10:12 PM	#16
MuseChaser Feeling like thinking.... Join Date: Oct 2015 Drives: 2013 FR-S Location: CNY Posts: 1,664 Thanks: 1,664 Thanked 2,433 Times in 1,064 Posts Mentioned: 20 Post(s) Tagged: 0 Thread(s)	The answer about what to do is.. as usual.. .it depends. What's the interest on your student loans? Is that interest deductible against your income tax (almost certainly, YES)? What rate do you think you could make if you put some of that money in a Roth IRA? (no tax on the money it makes, ever) How about in a traditional IRA? (deductible against your income on the way in, but you'll pay tax when you start withdrawing it in your retirement) Chances are, you'll probably be able to make more than you're paying in interest, AND you can keep the deduction for your student loan interest while you continue to pay off your loans. What amount of a car loan is deductible? NONE. What's the return on your investment in a car, especially a new one? NONE. You start losing money IMMEDIATELY. So, from a purely financial standpoint, it makes sense to NOT pay off your student loan with a huge one time payment, but use some of your 39K to invest in your future. Continue driving the cheapest car that'll get you where you need to go. Keep investing money as your cash/accounts-on-hand crest whatever your comfortable immediately-accessible threshold is. Only YOU can decide what the practicality-to-enjoy-your-money/life ratio is for you. No matter what I made, I always lived as if I didn't make that much, and never as if I made more than 50k/year. When I hit 55, I was free of debt, owned my own house, and was pretty much set for life. NOW I'm driving an FR-S ( but a 2013.. lol.. I'm still a cheapskate), a 560SL, and a Piper Cherokee. Yeah, I could have spent more earlier, but you know what? I had a great time throughout my life. Just depends what YOU need to enjoy your life. And.... don't take the kid thing lightly. It's not about having enough money to have a kid... it's about providing a healthy family for the child. A securely married Mom and Dad is one of the best things you can give a child. I'm not saying that based upon personal dogma of any kind, although yes, it's my religious belief. I'm saying it based upon objective observation of the literally thousands of students I've taught in my 32 year career. The happiest, most confident and capable students USUALLY (not always) came from traditional married Mom and Dad households. YES, there are plenty of exceptions to that observation, and it takes a GOOD mom and dad to have a good kid. However, it takes a truly EXCEPTIONAL single parent to give a child everything they need. Sorry.. soap box off. __________________ Drive like everyone's life around you depends on it...