dcsimg The Get Rich Slowly Forums • View topic - Advice on paying back my debt with investments and savings

  GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Fri Dec 19, 2014 1:15 pm




Post new topic Reply to topic  [ 7 posts ] 
Author Message
 Post subject: Advice on paying back my debt with investments and savings
PostPosted: Sun Aug 12, 2012 7:56 am 

Joined: Sun Aug 12, 2012 7:55 am
Posts: 1
I have some debt and I also have money in investments. I was thinking of selling the investments and paying down all debt to be debt free with the exception of house and small second mortgage. I want to get some opinions on this.

Here is what i have

Stock Account $20,613.65
investment acct $162,866.32
Savings $7,315.44
Savings $13,860.80
Savings $3,610.51
Savings $1,862.82

Sub Total $210,129.54


401K $258,149.72


TOTAL I $468,279.26

DEBT TO PAY OF
Credit Card 1 $9,315
Credit Card 2 $8,901
Credit Card 3 $5,138
Car Loan $5,630

TOTAL DEBT $28,985

I would liquidate my stock account of $20,613 I have apple stock in there so would need to pay capital gains etc. I would also liquidate my $7,300 savings account. All else would stay the same. I would pay off all outstanding debt. My interest payments on the debt totals abut $200 a month so that would all be gone.

I don't really want to get rid of my stock account because I have done so well with it and also will have to pay cap gains. but the thought of debt free is great.

Any advice? Thoughts?


Top
Offline Profile E-mail   
 Post subject: Re: Advice on paying back my debt with investments and savin
PostPosted: Sun Aug 12, 2012 6:28 pm 

Joined: Tue Mar 11, 2008 12:19 pm
Posts: 1795
Location: Ottawa, Canada
Are any of the investments funds tax-sheltered, besides the 401(k) you mentioned? Or can we assume you'll pay capital gains on all of it? And what are the interest rates on the debts? Is any of the credit card debt in a 0% interest promotional period?

With those considerations, I would definitely do what you are considering and liquidate some investments to pay off all that debt. I would also consolidate the savings. It will increase your monthly cashflow and simplify the number of accounts you're tracking.


Top
Offline Profile   
 Post subject: Re: Advice on paying back my debt with investments and savin
PostPosted: Sun Aug 12, 2012 10:00 pm 

Joined: Thu Aug 09, 2012 7:56 pm
Posts: 14
kombat wrote:
With those considerations, I would definitely do what you are considering and liquidate some investments to pay off all that debt. I would also consolidate the savings. It will increase your monthly cashflow and simplify the number of accounts you're tracking.


Whatever you do, don't listen to kombat. he does not understand money.

what is the interest rate on your debt?

_________________
http://foreverjobless.com/


Top
Offline Profile E-mail   
 Post subject: Re: Advice on paying back my debt with investments and savin
PostPosted: Sun Aug 12, 2012 11:18 pm 

Joined: Thu Dec 30, 2010 4:59 pm
Posts: 62
Location: San Diego, CA
Have you held the stocks for over a year? If you have I would not let fear of paying the tax man keep you from paying off your credit cards at a minimum. The top tax rate on long-term capital gains is currently 15% and I believe they are still scheduled to go up come January 1st 2013 (unless the politicians have changed this recently).


Last edited by tdelamater on Mon Aug 13, 2012 1:27 pm, edited 2 times in total.

Top
Offline Profile E-mail   
 Post subject: Re: Advice on paying back my debt with investments and savin
PostPosted: Mon Aug 13, 2012 12:42 am 

Joined: Wed May 30, 2012 11:56 am
Posts: 134
Are you done adding to your credit card debt? If so then it's certainly worth considering, but if you're going to wipe it out only to build that debt up again then I'd say there's other things to focus on first. I'll leave it to the experts on the forum to say whether it's a good idea in principal or not.


Top
Offline Profile E-mail   
 Post subject: Re: Advice on paying back my debt with investments and savin
PostPosted: Mon Aug 13, 2012 7:13 am 

Joined: Mon Nov 01, 2010 5:15 pm
Posts: 1227
Is there any reason why you can't take the 4 savings accounts which add up to approx. $26,650 & pay it towards the debt of $28,985? Pay off all the cards & stop accumulating credit card debt. Then pay the remainder toward the car loan. Those savings accts are almost enough to wipe out all of your debt without cashing in any investments or taking a loan from any retirement accounts. All you'd have left is a $2,330 car loan.


Top
Offline Profile E-mail   
 Post subject: Re: Advice on paying back my debt with investments and savin
PostPosted: Mon Aug 13, 2012 8:59 am 
Moderator

Joined: Wed Sep 23, 2009 9:01 am
Posts: 5402
Yes, listen to Kombat and Tightwad. They know what they are talking about.


Top
Offline Profile E-mail   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 7 posts ]  Moderators: bpgui, JerichoHill


Who is online

Users browsing this forum: bdg, Exabot [Bot], Google [Bot], Google Adsense [Bot] and 21 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki