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You should use the cash to pay off your student loans. My answer would be different if the market was better and you could get better rates on your money market.
However, the current rates of return are not enough to make investing the funds more attractive.
So bite the bullet and send the check. Its tough to do.
I know it is, but think of how you are freeing yourself from the debt
You no longer have to worry about it...
You will still have $60,000 left - that's a good nest egg
I know. It is always in the back of my mind.
My answer would be different if you had only $100,000
It is but its a step back from building for retirement.
But you will still have a good emergency savings balance
These funds are NOT in an IRA or401(k) right?
This is cash
I do. But I'm 44 and don't want to work forever.
I figured you would say that but wanted to hear it from a Pro.
Okay. Great. IF you had to pull the funds from a retirement account, I would tell you not to do that because of the tax impacts
Thanks for the advice. Know I need to figure out where to put the existing cash.
It depends on your risk comfort level
If it's all you have, a money market would be wise. But, when you save up even more money you can look to invest in stocks and bonds
But I always say don't put money in the stock market that you can't afford to lose
I've been there and lost alot hence the 160,000 in a money market.
Thanks for the advice. I think I will get rid of the loans.
I'm glad I could help today. Another thing you could invest in is real estate - become a landlord
You could bring yourself a steady stream of income each month, but there too there is some risk of loss, such as not being able to find a tenant or having someone destroy your property
That was a possible plan for the cash.
Perhaps I will consider that more strongly. Once I clear the loan balance I will be better able to get another mortgage.
It will be easier for you to get financing on a house once you get rid of the student loan debt
I think its what I have to do. Thanks for your help.
You're welcome. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today
I'll do that. Take care.