I definitely have learned that after I got the loan for the vehicle sadly. I had gotten the loan at 50k no down payment two years ago and have just been aggressively trying to pay it off quicker than the loan term. Using my emergency fund and not contributing to my taxable for the year does make sense. I would be able to pay it off by April next year too, thank you for the insight!Pay cash for a car which is a depreciating asset. The $19k car loan interest at 4.74% is not deductible. Your HYSA has to earn >6% to break even after tax. Consider using a portion of your emergency fund + eliminating your Taxable contributions of $6k to pay off the loan. Then redirect your former car payment to replenish your emergency fund.
Statistics: Posted by buuuzzz — Thu Dec 26, 2024 2:07 pm — Replies 6 — Views 180