Personal Finance (Not Investing) • Investing principal amount of car loan versus pay off car loan

Thank you for the advice. What I am looking at is taking a chance essentially if I choose to put the 75k into a separate brokerage acct with VOO or VTI/VXUS in that over the course of 5 years the return will exceed 8.5% averaged across those 5 years which would put me in the positive return territory versus paying it off entirely and then I have a guaranteed 6% return in that I paid zero interest. It is tempting in that as we know historically, the return has been 10% so that is a lower projection.

The safest plan is what was suggested, pay it off immediately and then make "payments" of the same amount into a high yield online MM acct for 5 years. If anyone else has been in this or similar situation, would love to hear how it worked out.

Statistics: Posted by InvestorPsychologist — Mon Feb 17, 2025 1:21 am — Replies 3 — Views 193

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