Comments on: This is a $10,000 test http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/ Personal finance, commentary, and spending less the easy way Fri, 19 Mar 2010 14:24:44 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: Jon http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/comment-page-1/#comment-76172 Jon Tue, 17 Jul 2007 16:10:13 +0000 http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/#comment-76172 It's remarkable when people ask these types of questions because the person being asked has no idea of the financial condition of the person asking. In any situation, I think the person would have to evaluate all the costs. If she's carrying unsecured debt that costs her more than she can earn in the market, it might make sense to pay down her debt. If she's carrying a 0.9% car loan, it might make less sense to pay that down than to throw the money in to a 4% account. When you consider compound interest, it might be beneficial to put $4000 into a Roth or Tradtional IRA, and put the extra $6000 into a nice index fund instead of throwing it into a low interest savings account. Then again, if her parents are giving her 10 large, there is a possibility that she might be in a very high income bracket where $10000 is no big deal, or dead broke and needing of assistance. There's just no way to tell. I'm rambling now. Geez. Sorry I'm such a spaz. It’s remarkable when people ask these types of questions because the person being asked has no idea of the financial condition of the person asking.

In any situation, I think the person would have to evaluate all the costs. If she’s carrying unsecured debt that costs her more than she can earn in the market, it might make sense to pay down her debt. If she’s carrying a 0.9% car loan, it might make less sense to pay that down than to throw the money in to a 4% account.

When you consider compound interest, it might be beneficial to put $4000 into a Roth or Tradtional IRA, and put the extra $6000 into a nice index fund instead of throwing it into a low interest savings account.

Then again, if her parents are giving her 10 large, there is a possibility that she might be in a very high income bracket where $10000 is no big deal, or dead broke and needing of assistance. There’s just no way to tell.

I’m rambling now. Geez. Sorry I’m such a spaz.

]]> By: Free Money Finance http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/comment-page-1/#comment-76038 Free Money Finance Mon, 16 Jul 2007 20:31:37 +0000 http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/#comment-76038 <strong>Star Money Articles for Last Week...</strong> Here are some recent interesting posts from the MoneyBlogNetwork and beyond: All Financial Matters discusses high 401k fees. MightyBargainHunter highlights a $10,000 test. Five Cent Nickel covers the latest Wal-mart roll back. Blueprint for Financial P... Star Money Articles for Last Week…

Here are some recent interesting posts from the MoneyBlogNetwork and beyond: All Financial Matters discusses high 401k fees. MightyBargainHunter highlights a $10,000 test. Five Cent Nickel covers the latest Wal-mart roll back. Blueprint for Financial P…

]]> By: Easy E http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/comment-page-1/#comment-75983 Easy E Mon, 16 Jul 2007 13:36:09 +0000 http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/#comment-75983 Buy Gold Buy Gold

]]> By: thomas http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/comment-page-1/#comment-75942 thomas Mon, 16 Jul 2007 07:45:09 +0000 http://www.mightybargainhunter.com/2007/07/16/this-is-a-10000-test/#comment-75942 the boring stuff is unfortunately the best thing to do. However, I always feel that when you get gifts like this, you are obligated to do something fun. Go buy an outfit, eat at that steak house you never would go to, buy some new tech toy or a box set of your favorite artist. Keep it small and simple, and realize the small sacrifice you are making today for a better tomorrow. Me personally, put the 4k in IRA, put another 4k in my online savings for next year's IRA, put 1k in my emergency savings, and the other 1k I'd mark for xmas presents and a gift for myself. the boring stuff is unfortunately the best thing to do. However, I always feel that when you get gifts like this, you are obligated to do something fun. Go buy an outfit, eat at that steak house you never would go to, buy some new tech toy or a box set of your favorite artist. Keep it small and simple, and realize the small sacrifice you are making today for a better tomorrow.

Me personally, put the 4k in IRA, put another 4k in my online savings for next year’s IRA, put 1k in my emergency savings, and the other 1k I’d mark for xmas presents and a gift for myself.

]]>