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What should I do with the money in my savings account?

I am single, 50 years old, and I have a pension and 401(k). I have $10,600 in credit card debt (one credit card's balance is at $4,300 with no interest and another balance of $6,300 with 15 percent interest) and two personal loans totaling $27,000 (one loan's balance is at $7,000 with 11 percent interest and the other is $20,000 with 11 percent interest).

I recently sold my car for $18,000 and placed the money in a savings account. What should I do with this money?

Debt, Pensions, 401(k), Asset Allocation
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May 2018

Assuming you are working, I suggest keeping six months of expenses in a savings account (emergency fund) and using any surplus above that to reduce and eventually eliminate all of you debt.  You are hurting your short and long term investment prospects by borrowing money.  You still have 15 years of productive, income earning years ahead and you should maximize your savings while you can.  The power of compounding interest can work against you when you have debt or for you if you don't have it. 

May 2018
May 2018
May 2018
May 2018