You don't give sufficient details of the car loan (amount and term outstanding and interest rate) but it generally doesn't make sense to have the existing savings/investments while borrowing for a car.Other borrowings – car loans/personal loans etc: spouse has car loan of 350e per month
Other savings and investments:
Approx 15k in bank
2 investment funds with Zurich (1 worth approx 8k - we pay children's allowance into this monthly, 1 worth approx €500e, I've only recently started paying AVCs to allow me to retire at 60)
I'd rather not use to pay down debt either (spouse car loan)
Totally appreciate this but we don't want to use the money to pay for the car. We are happy to keep paying the car loan. I totally appreciate the interest rates are higher than what we earn but would rather keep the money aside for the kids.You don't give sufficient details of the car loan (amount and term outstanding and interest rate) but it generally doesn't make sense to have the existing savings/investments while borrowing for a car.
That makes zero sense.I totally appreciate the interest rates are higher than what we earn but would rather keep the money aside for the kids.
I'm not referring to the "childrens'" money.Totally appreciate this but we don't want to use the money to pay for the car. We are happy to keep paying the car loan. I totally appreciate the interest rates are higher than what we earn but would rather keep the money aside for the kids.
Sorry. Appreciate your thoughts. But again we won't be using our savings to pay off the car.I'm not referring to the "childrens'" money.
I'm referring to the fact that you have existing savings/investments but are borrowing to buy a car.
That simply makes no sense unless it's a very very cheap loan.
Also, this compartmentalising of finances rather than taking a holistic view is a classic mistake that many people make.
Appreciate your thoughts. However, it wasn't the question I asked. Not looking for advice on clearing the car loan. Just on what to do with a lump sum investmentThat makes zero sense.
But they don't have to touch the childrens' gifted money at all. They already have savings/investments that can be used to pay off or reduce the car loan.It actually makes no sense from an overall family point of view to have a short term car loan at, say, 10% with other money on deposit at, say, 1% or so. The family is losing on a nett basis. I get that you don't want to shortchange the kids on their grandparents gift and that's admirable. So how about this approach:
1. Put the kids money into an account
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