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We closed on our house a couple of weeks ago, and I've been debating what to do with the proceeds from the sale. Here is the important info: My wife has $38,000~ in student debt (5.7% interest) We don't have a car payment, and won't in the future (my job takes care of that) We have no credit card debt I myself have no student loan debt We made $55,000~ from the house (after costs) We just signed a 12 month lease for an apartment so we didn't have to rush into buying a new house and could take our time (and could save a bit of money, even though renting is loving ridiculous) So I ask you goons, what the hell do I do? Going into the house selling process, my plan was to pay off my wife's loans entirely and then take the rest of the money and put it into a large down payment on a different house (in a less desirable area, because I'm a cheapskate, and start the process over again). I figured if I could do that, and reduce our total debt while lowering our overall interest rate by a point or so, it'd be like refinancing. I know absolutely nothing about investing, which is why I've been apprehensive to go in that direction (I'm not a betting man). Any thoughts?
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Feb 3, 2018 04:31
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| # ¿ May 15, 2024 19:40 |
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SiGmA_X posted:5.7% is a solid guaranteed return rate. I would pay off those student loans right away. Then stockpile cash in a high yield savings account (>1.4% at basically all online banks these days) for your down payment on the next house. You don't want short term (<5yr) savings in The Market. At most you could use a money market or short duration treasury fund. My wife has a 401k through her job, but my employer doesn't offer anything (and it's not something I've ever looked into because of my lack of understanding/laziness).
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Feb 4, 2018 00:20
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moana posted:Investing isn't day trading, it's not betting in that sense. Take the next couple of months and look into the long term investing thread and make it a priority to learn how to save and invest your money. Don't put it off, it's one of those things like exercise where it doesn't matter if you're doing it perfect, just that you start as early as possible and keep at it consistently. I will do that, thank you  n8r posted:Make sure you set aside enough money that you can avoid PMI on the next home loan. Otherwise pay off student loan. That's been my aim, and I don't think it should be too much of a problem.
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Feb 4, 2018 14:24
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