If you were given a loan for $20,000 @ 1% interest....what would you do?

[Ausm]

Originally posted by: RossMAN
*kisses his Chase Perfect credit card and 1.9% fixed APR on balance transfer with no fees offer*

BASTAGE!!!


J/K




Sysadmin

 

[spidey07]

I'd do index fund and get some free money.

 

[konichiwa]

Originally posted by: spidey07
I'd do index fund and get some free money.

:thumbsup:

 

[abracadabra1]

Originally posted by: spidey07
I'd do index fund and get some free money.

Originally posted by: konichiwa

Originally posted by: spidey07
I'd do index fund and get some free money.

:thumbsup:

two for the index fund...roger

 

[boomdart]

Add a wee bit extra and buy a early 90's NSX.

When I graduate I plan on buying a '96+ NSX w/ Targa Top; with the help of the parents of course.

 

[Thegonagle]

Start up your Roth IRA with some of it, and choose some short-term, low-risk investments with the rest. Keep it fairly liquid though, so you don't need to worry about the income you may or may not have when repayment starts.

Don't buy a property unless you know what you're doing in dealing with tenants, and you have the time and know-how for maintenance and upkeep. Nobody else will take care of your property like you would, so it could turn into a slum in short order if you can't take care of it.

Originally posted by: BullyCanadian
CAR

Silly boys. I once thought like you. But now I realize that it's worth it to spend as little as possible on transportation that just meets your needs until you can actually afford your dream ride without a loan.

 

[zephyrprime]

Honestly, your best bet would be to throw it all into an annunity

Be careful with such a plan. What if you're strapped for cash in a few years and can't afford the loan payments? I know you're planning on going into the military but what if something happens?

Take the money and invest it. 1% with deferred payments is a steal!! But be careful about real estate because I think it's gonna decline in the next few years.

 

[abracadabra1]

Originally posted by: zephyrprime

Honestly, your best bet would be to throw it all into an annunity

Be careful with such a plan. What if you're strapped for cash in a few years and can't afford the loan payments? I know you're planning on going into the military but what if something happens?

Take the money and invest it. 1% with deferred payments is a steal!! But be careful about real estate because I think it's gonna decline in the next few years.

Well...I am in the Navy currently and will be in the Navy for the next 7 years (unless something unforeseen happens). If I happen to be kicked out, I don't get the loan.

I'm not too worried about getting kicked out...so that's not really a concern.

 

[Dufman]

Originally posted by: zephyrprime

Honestly, your best bet would be to throw it all into an annunity

Be careful with such a plan. What if you're strapped for cash in a few years and can't afford the loan payments? I know you're planning on going into the military but what if something happens?

Take the money and invest it. 1% with deferred payments is a steal!! But be careful about real estate because I think it's gonna decline in the next few years.

The loan payments that you would make on an annunity can be taken out of the cash value. You wont have to "repay" them, since they are just deducted from the withdraw you make. IE. if you say you want to net $100 from your annunity. Then $104 will be taken out (assuming a 4% loan interest rate). This way you dont have to repay loans down the road.


1%?????
That is dumb. You can select an annunity date at any age down the road. All deferred, and the interest grows tax free. In my state, my company offers 5.45% (for investments under 100k, 7.65% over 100k) the first year, As of yesterday, our current annunity rates were at 4.25%-5.40% depending on the type of annunity after the first year, and no less than 3.40 in any year.

With a CD, the banks only have to hold 2% of the value in reserves. It is insurred, but you will never see a lump sum, and nothing over 100k. With insurance companies, they have to hold 95% of the value in reserves. They are much more secure.

 

[abracadabra1]

Originally posted by: Dufman

Originally posted by: zephyrprime

Honestly, your best bet would be to throw it all into an annunity

Be careful with such a plan. What if you're strapped for cash in a few years and can't afford the loan payments? I know you're planning on going into the military but what if something happens?

Take the money and invest it. 1% with deferred payments is a steal!! But be careful about real estate because I think it's gonna decline in the next few years.

The loan payments that you would make on an annunity can be taken out of the cash value. You wont have to "repay" them, since they are just deducted from the withdraw you make. IE. if you say you want to net $100 from your annunity. Then $104 will be taken out (assuming a 4% loan interest rate). This way you dont have to repay loans down the road.


1%?????
That is dumb. You can select an annunity date at any age down the road. All deferred, and the interest grows tax free. In my state, my company offers 5.45% (for investments under 100k, 7.65% over 100k) the first year, As of yesterday, our current annunity rates were at 4.25%-5.40% depending on the type of annunity after the first year, and no less than 3.40 in any year.

With a CD, the banks only have to hold 2% of the value in reserves. It is insurred, but you will never see a lump sum, and nothing over 100k. With insurance companies, they have to hold 95% of the value in reserves. They are much more secure.

Wouldn't I get a better return from an index fund? The annuity seems like a steady means of generating an increase in cash that's more secure than an index fund but offers less possibilities for growth.

Thanks for the PM about the annuity, Dufman.

Any other suggestions?

 

[PingSpike]

Blow it all on moon land.

 

[abracadabra1]

Originally posted by: PingSpike
Blow it all on moon land.

i'm not that forward-looking.