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I'm getting a 30k bonus and have no credit card debt. Should I pay off my car loan, or do something else with the money?

The article from MSN Money discusses a reader's dilemma on how to best utilize a $30,000 bonus. The reader, who has no credit card debt, is considering whether to pay off their car loan or invest the money elsewhere. Financial expert Charlotte Cowles advises against rushing to pay off the car loan due to its relatively low interest rate of 3.9% compared to potential investment returns. Instead, she suggests several alternatives: investing in a retirement account like a Roth IRA or a 401(k) for tax benefits and long-term growth, or even considering a taxable brokerage account for more flexibility. Cowles also recommends building an emergency fund if not already in place, and mentions the psychological benefit of being debt-free but emphasizes the financial advantage of investing. She concludes by suggesting a balanced approach where part of the bonus could go towards reducing the car loan, while the rest could be invested or saved, depending on the individual's financial goals and risk tolerance.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/i-m-getting-a-30k-bonus-and-have-no-credit-card-debt-should-i-pay-off-my-car-loan-or-do-something-else-with-the-money/ar-AA1zAcZg ]