A Reddit user is contemplating whether to sell stocks to pay off a car loan. Despite the appeal of eliminating monthly payments, financial advice suggests that maintaining investments could yield better returns. The OP's car loan interest rate of 6.06% is manageable, especially compared to potential stock market gains, which historically average around 10% annually. Despite the risks associated with debt, continuing to hold onto stocks may promote better long-term financial growth rather than liquidating assets prematurely to pay off the loan.
While car payments can be burdensome, selling stocks to pay off a car loan may not be wise, especially if returns in the stock market exceed loan interest rates.
The user's decision largely hinges on understanding that maintaining stock investments can yield better long-term financial returns than eliminating a manageable car loan.
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