General Question

Eggie's avatar

Did I invest wisely?

Asked by Eggie (5711points) 1 week ago

I have received a huge back pay from my job and I needed a car. So what I did was I payed off my existing loan with piece of the money and I invested the rest of the money on shares, increasing my share value. I then took a new loan which was a motor vehicle loan. My question is this, should I have bought my car cash with the back pay money instead?

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3 Answers

stanleybmanly's avatar

Would your dividends from the investment exceed the interest you willl pay on the loan?

janbb's avatar

What interest are you paying on the car loan and what return do you expect to get on the stocks? That will tell you whether you made the right decision or not.

But actually, if you are investing for long term growth and can pay off the car loan out of current salary, you probably did make a wise decision.

Love_my_doggie's avatar

If you bought after the DJIA had dropped 725 points, you might be very happy with your choice.

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