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Anonymous

18 Apr 2019

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What should I do having $40K saving with existing $17K reno loan 4.44% p.a. and $25K dealer car loan? Should I invest into any market to generate ROI more than 5% instead? thank you in advance?

What should I do having $40K saving with existing $17K reno loan 4.44% p.a. and $25K dealer car loan? Should I invest into any market to generate ROI more than 5% instead? thank you in advance

AMA Christopher Tan

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Jonathan Chia Guangrong

23 Jan 2019

SOC at Local FI

Is your cash flow able to cover the loan repayments for both your reno and car? And how confident are you to achieve 5% returns with your investments? If you are not confident consider paying down or redeeming the loan with the highest interest to give you some breathing room first. Then work on the other loan before building up some emergency funds and eventually going into investing.

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Gabriel Tham

23 Jan 2019

Tag Team Member at Kenichi Tag Team

Why not pay off the reno loan? By paying off the reno loan, you actually saved 4.44% in interest.

Pay off the 25k car dealer loan and you can save more interest.

Without debt, you can invest future capital without any worry about not being able to pay loans.

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