WWMMD with 5k?

[thegooser]

We owe 12k on a car. 3% interest, we are not underwater on it. Other car is paid off. No other debt we are interested in paying off early; this is the final frontier before we start building wealth.

Have $8k in savings, which is about a 2.5 month efund. Job is very very secure. Own a home which has tenants, don't have kids.

Due to debt payoff, retirement contribution has been about 8%. I have a Roth open with a few hundred in it in addition to TSP contributions. I could open one for DH, too.

Put it towards the car? Put it in retirement? Put it in savings? TBH, putting it in savings is my least favorite option.



Go on vacation?

[Deleted]

I know it isn't exciting, but I would put $2k in savings to get to the 3-month efund mark. After that, I don't know. Do you have a savings account for repairs and things for the house with tenants? There are always costs associated with going from one seet of tenants to another and it is nice to have a cushion for that. Otherwise, I would put it towards retirement, I guess. The car interest is so low it isn't really worth putting much extra towards.
Oh, and maybe go out to a nice dinner somewhere with some of it just for fun. : )

[Deleted]

a 2.5 month efund seems low for a landlord - I would put the money in savings.

[dexteroni]

Ditto songforyou - open a Roth for your DH and split the money between them. You could either split the $5k evenly, or bring them to equal balances, which would mean less goes into yours. We like to keep our IRAs fairly even, but that's just personal preference.

[dr.girlfriend]

Put it in the Roths, you can always withdraw it (the initial investment, if not the interest income) in an emergency if your efund is wiped out. In the meantime it grows tax-free. I started in grad school funding a Roth...it was hard to let that security blanket out of my savings account, but I told myself I could always get to it if I really needed it, and luckily was able to avoid doing so. Now it's probably worth triple what I put in.

[countthestars]

Roths

[holly116]

I agree with the others, fund Roths.