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570 Posts
Sorry to hear about your mom, and even tho you didn't have a good relationship with your step father, never fun to hear about people leaving us.
Anyway, i'll fall in line with everyone else and say pay off what bills you have. I know the temptation to spoil yourself is great or even to invest. But let's think about it for a second and consider how much you're paying on your credit card balances. Even a good rate you're paying at least 9%? If you invest in mutual funds or stock instead of paying the bills, you're going to maybe get 10% over time AND have to pay the capital gain tax on top of that if you sell. If you just put it in the bank in a saving account you're going to make maybe 2%? Even a mediocre CD you're going to make about 5% over 5 years. See where I'm going here? Sure, you've got money saved up, but you're in the hole on your outstanding 'bad' debt.
My numbers are just kind of average, generic ones from my own credit union. So yeah, pay off the outstanding bad debt, make a maximum Roth or Traditional IRA contribution for the year ($4000 if you're under 50), and then use what's left towards your bike.
I'm not a financial adviser but I am kind of involved in that industry. I'm not a CFP or CTA or anything, so you should see a professional before doing anything, but this is my layman's advice.
good luck,
P
Anyway, i'll fall in line with everyone else and say pay off what bills you have. I know the temptation to spoil yourself is great or even to invest. But let's think about it for a second and consider how much you're paying on your credit card balances. Even a good rate you're paying at least 9%? If you invest in mutual funds or stock instead of paying the bills, you're going to maybe get 10% over time AND have to pay the capital gain tax on top of that if you sell. If you just put it in the bank in a saving account you're going to make maybe 2%? Even a mediocre CD you're going to make about 5% over 5 years. See where I'm going here? Sure, you've got money saved up, but you're in the hole on your outstanding 'bad' debt.
My numbers are just kind of average, generic ones from my own credit union. So yeah, pay off the outstanding bad debt, make a maximum Roth or Traditional IRA contribution for the year ($4000 if you're under 50), and then use what's left towards your bike.
I'm not a financial adviser but I am kind of involved in that industry. I'm not a CFP or CTA or anything, so you should see a professional before doing anything, but this is my layman's advice.
good luck,
P
