Re: [MLUG - DISCUSSION] Financial Question

[Nathan Odle <EMAIL:PROTECTED>]

Small installment loans like this are probably best to pay off if you 
don't have a lot else going on with your money.

One thing I would suggest regardless of what you do - pull all the 
money you have out of your savings/CDs and go open a brokerage account 
with Fidelity Investments or another internet-enabled broker.  Then, 
put your money into something like SPY or other exchange-traded funds 
(ETFs).  Any money not invested in stocks or other equity positions 
will be drawing interest at money market rate, and this arrangement 
also has the added benefit of being a checking account if you want it 
to be.  Unlike traditional "mutual funds", ETFs have no overhead costs 
and you can pick your sector just the same.

Stay away from the traditional brokerages too, generally speaking you 
aren't paying them to have your best interests at heart and you can do 
a lot better on your own by doing a little homework.

I can provide a good reading list if anyone wants it.

-N

On May 3, 2004, at 3:39 PM, Jerry Gamblin wrote:

> I owe 12 more $85 dollar payments on a loan to my local bank.
> If I go and pay it off today (tomorrow) it will only cost me $953.
> I have about $1500 in a normal savings account and more money in CD's
> that I could get out if an emergency occurred.
>
> It will cost me $6 in interest a month to pay off the loan at $85
> payments instead of just going in and paying it off. Is it smarter to
> just pay off the loan or to keep the money in savings and just make the
> payments?
>
> I looked on the internet and couldn't find a good answer.
>
> Jerry Gamblin
> Network Security Specialist
> Linn State Technical College
> One Technology Drive
> Linn, MO 65051
> EMAIL:PROTECTED
> www.linnstate.edu
> 573-897-5240
>
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