We owe 16.1 k on a car loan ($421/month for another 39 months) and have about 16k in cash + some more set aside for emergencies (3 months expenses in cash).
So a few things here:
- I know MMM does not approve of car loans
- I know MMM does not really approve of emergency funds (cash not at work)
- I also know we will keep the car and the emergency fund for now
- I know if MMM reads this I might get a heart felt lecture
Question: Given current market conditions, I would appreciate commentary on the following scenarios:
- lump sum the 16k into Vanguard, and if so which funds?
- invest the money in Vanguard some other way
- pay off the car loan which is a 1% loan with about $13 of interest / month
- something else...
The stock market seems a bit frothy and uncertain right now, which is what is pushing me to pay off the car which frees up $421 / month that would start going into Vanguard via dollar cost averaging...
your thoughts appreciated - thanks...