From: Ron Peterson 
Newsgroups: misc.invest.financial-plan
Subject: Re: payoff car loan or pay towards mortgage?
Date: 29 Jul 2004 18:35:01 GMT
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MikePier  wrote:
> This is my situation:

> $22,000 auto loan @ 5.5% 4.5 years left.
> $333,700 mortgage @ 6.25% 30 years left (just purchased house)
> $365,000 in cash in the bank ( some in conservative bond mutual
> funds).

People need more information to give you good advice. How much equity to
you have in your house? What is your approximate annual income and how
secure is it? What is your approximate age? What is your marital and
children situation.

> I wanted to pay off my car loan since I am not getting any tax
> advantages. Plus it would save me $3100 in interest over the 4.5 years
> left on it. I'm not sure if it would be better to put it towards the
> mortgage, or just keep the money and find other ways to invest.

Pay off your car loan. Sell your bond mutual funds because interest
rates are going up. Buy some stock mutual funds, and pay off some of
your mortgage. I don't think you need more than $80,000 in the bank or
money market.

-- 
   Ron