Cc or VTSAX


#1

I feel like flipping a coin for this. I have a $4K tax return. I know completely paying off my cc is the right thing to do but the stock market is calling me! What would you do?


#2

Are you paying interest on a credit card?

Pay off debt all the way.


#3

Yep, a high interest one. But there’s the big sale on stock! I know you are right…


#4

There is simply not a “big sale” on stocks. As of today’s close we are at what, December 2017 prices? Maybe November?.

I’ll consider it a big sale when we get back to 2012 prices.


#5

Very true, I still have 21% return over the last year. Moment of weakness. I just paid the cc off.


#6

Smart move! Eliminating the debt is a great move, even if it was 0%! Paying it off eliminates the future payments; those payments can now dollar-cost-average into the market.


#7

Debt Debt Debt…get rid of it. You will feel better.


#8

Paying off your Credit Card would be the better investment. IMO


#9

CC interest rate is double digits, stock dividends in low single digits, pay off the debt.


#10

We usually zero out every month. I have our auto savings and pretax accounts a tad bit too high despite our usual frugal ways. The bill crept up over the last few months of unanticipated purchases of course not all necessary items but they brought joy to us and others. Goal is to keep it zeroed out each month forever.


#11

Now, the mental game to play next would be to take the money you were using to service that cc debt (say $50) and set up an automatic purchase of VTSAX once a month.


#12

Thanks! I’ll do that now. We’ve got lots of accounts filling up through auto deductions but not the market one. We do it in chunks when we get our act together every few months but I’d feel better with this rolling!


#13

I am definitely voting to pay off the CC Bill! You’ll be amazed by how fast you can build wealth once all your bad debt is in the past. For example, four years ago my wife and I paid off the last of her school and car loan, and then we dove head first in building our asset collection. Pay off the debt, and then you’ll have a stress-free conscious being aggressive toward building the wealth that’s calling your name.


#14

I say invest it in this order:

  1. 401(k) up to match
  2. high interest debt
  3. HSA
  4. IRA
  5. 401(k) to maxh
  6. Taxabale investment account