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Personal Finance (Not Investing) • Do I take out a 7.44% car loan or do I dip into my Roth?

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How should I pay $17,000 in a car loan at 7.44%? Do I go into my Roth and pay it off without tax? I'm over 59 and my Roth is over 5 years old, so I won't be taxed.

Or do I pay off the car using a loan at 7.44%? The interest is what hurts! Only one of us works, but it's a six-figure income.

We have about 45k left on our mortgage.

Perhaps taking out the loan and paying off the premium as quickly as possible is the right decision. Perhaps the market will help the Roth grow at a quicker rate than the interest on the loan.

I really am not sure. I am trying to keep my uneducated emotions out of this and make the smartest decision. LOL

How would you determine the best option?

Thanks

Statistics: Posted by MoolaGrow — Fri Mar 01, 2024 3:03 am — Replies 7 — Views 307



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