re: Some sort of pun on the word interest. by anonymous questioner

June 08, 2007 12:35 AM

dear internet,

I have a student loan with a fixed rate 3.25% interest. Does it make sense that I'm making only minimum payments in order to shove extra cash into a money market account earning 5.33% (apr) or an ira retirement account?

31.6% of the latest payment went towards interest.

I dip into the mm account frequently so it's not always earning anything. On the other hand that means I couldn't have afforded to put the majority of the money towards the student loan anyway.

No, I am not maxing out my ira contributions.








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