Author Topic: How to allocate extra cash?  (Read 1552 times)


  • 5 O'Clock Shadow
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How to allocate extra cash?
« on: December 27, 2013, 10:14:30 AM »
Happy holidays everyone!

I made an extra 3k this month. I'm debating whether I should invest it, save it, or use it to pay off a student loan.

1) investing it would mean to deposit it all into my Roth IRA, as I have room for contributions for 2013. Not a bad choice...but is it the most efficient?

2) I would add to my cash savings as I will be attending grad school soon and cash in hand would be fewer loans.

3) Pay off subsidized student loan at 6% interest. What makes this a little less favorable is that when I go back to school, the interest will be subsidized. Any new loans I would have to take out would not be subsidized and would accrue while I was in school.

I want to invest it, but part of me thinks that I should save it for school. At the same time, I could potentially work while in school to cover the expenses if I had already invested the money.

Your thoughts would be highly appreciated!


  • 5 O'Clock Shadow
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Re: How to allocate extra cash?
« Reply #1 on: December 27, 2013, 11:43:11 AM »
Sounds like there's a lot of variables here. I am out of school, what do I when I get large sums is 1/2 pay down student loans and 1/2 to the Roth IRA.

Frankies Girl

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Re: How to allocate extra cash?
« Reply #2 on: December 27, 2013, 01:34:51 PM »
How far off is the going back to school plan?
If it's more than a few months, then I'd put the extra money towards the school loan as that interest is kind of high.