How Can CIA Help You?

Request Consultation
Ask an Advisor
Financial Tools
Request Consultation
Ask an Advisor
Financial Tools
Blog

General Finance Question – Auto Payoff

 

Q:  Should I use personal savings to pay off my car? I am retired with a military pension and social security. My income exceeds my expenses and I have no other debt other than my mortgage. I owe almost two more years of $500 car payments. I plan to put the car payment money into savings if i pay it off. Please advise and thank you in advance for your time.

 

A:  Good question.

 

It is difficult for us to answer with certainty without knowing your situation more completely and fully.  A general rule of thumb for us is if you have more than your required emergency cash reserves (6 months is typically suggested) and you are earning a rate of return less than the interest on your car payment, then it might be prudent to pay it off and begin saving in a higher interest-bearing account after it is paid.


 

Get Started Today

Request Consultation
Ask an Advisor
Retirement Calculator
Retirement Calculator
Social Security Optimizer
eBook
jordan 12 cherry jordan 12 cherry jordan 12 cherry jordan 12 flu game jordan 12 flu game jordan 12 flu game jordan 12 french jordan 12 french jordan 12 french jordan 12 gym jordan 12 gym jordan 12 gym jordan 12 ovo jordan 12 ovo jordan 12 ovo jordan 12 unc jordan 12 unc jordan 12 unc jordan 12 wings jordan 12 wings jordan 12 wings
adidas human race black adidas human race blue adidas human race green adidas human race grey adidas human race pink adidas human race red adidas human race white adidas human race yellow