Investing

Advice: Pull out stock to pay auto loan

  • Last Updated:
  • Aug 1st, 2020 1:08 am
[OP]
Member
Oct 17, 2009
297 posts
13 upvotes

Advice: Pull out stock to pay auto loan

Hi All,

I currently have Amazon stocks and i was wondering if i should pull out 25k to pay off my auto loan
5 replies
Deal Fanatic
Jan 21, 2014
6916 posts
4320 upvotes
you need to give more details than just that OP, like the loan interest and how many more years, etc. Let's look at it this way, right now, would you go out and borrow $25K (at the auto loan interest rate) to invest in amazon stock? If you would then keep the stocks. If you wouldn't then sell the stocks to cover the loan
Member
Apr 8, 2017
362 posts
224 upvotes
Yes OP you need to provide some details like interest rate and loan term. Also are the shares held in registered or non registered account, and if non reg what is the cap gain you will pay.

Will dive in a different topic, why Amazon stocks in particular, how much of your portfolio is in AMZN? You might need to take some profits regardless and rebalance your portfolio
Sr. Member
User avatar
May 29, 2005
740 posts
279 upvotes
Nepean
I'll give you my opinion on debt.

When I graduated during the tech boom I thought that I would keep my loans and invest instead. After a couple of months, I just paid it off because I didn't want that extra budgeting constraint every month. It also felt really good to pay off the loan. It was like everything in my life just got better!

Then a couple of years later, we did that with my partner's student loan and guess what the sky suddenly got more blue and pleasant.

We did the same with our car loan, then the house later on.

Ever since I've bought two more brand new cars in cash.

I know that financially, investing is the best way to make money, but no matter how much money I have, clearing off debt is one of the best feelings in the world!

EDIT: I'll also give you my opinion on investing. No matter what you do, you can always spin it make it look like you lose. Sold too early, sold too late, bought too early or bought too late. You could have made $100k and sold then the stock doubles. Do you feel happy or sad?
Deal Addict
Jun 18, 2018
1521 posts
966 upvotes
Toronto
ShuttleBoy wrote: Yes OP you need to provide some details like interest rate and loan term. Also are the shares held in registered or non registered account, and if non reg what is the cap gain you will pay.

Will dive in a different topic, why Amazon stocks in particular, how much of your portfolio is in AMZN? You might need to take some profits regardless and rebalance your portfolio
Basically this lol.

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