I have about a 33k car loan left to pay off in the next ~4 years. ( @6% ) Got some annual bonus and made some quick $$ on stocks recently. Should I pay off a few thousands ( 5k or 10k, maybe? ) off the principal amount? Or, instead, put it in VTI and just pay the monthly loan amount? 320k
If the interest rate is >= 5% then yes. Paying it off means a guaranteed after tax return on your investment equal to the interest rate.
At 6% that means you're earning a guaranteed 8+% return before taxes for each dollar you pay down.
I have a 3% rate and even though I could write a check for it, no way am I paying that off early. It all depends on your rate.
Pay off the loan
Whats the interest
6%
Unless u can make something greater than 6% with that money, else pay it off