Maximize Your Bonus: Tax Savings and Debt Repayment

In today’s episode, Warren Ingram explores the best ways to use a bonus, weighing the benefits of paying off car debt versus investing it. He discusses various options, including reducing taxes by contributing to a retirement account and the advantages of paying off high-interest debt. 

Takeaways

• Consider the interest rate on car debt when deciding whether to pay it off or invest the money elsewhere.
• Putting a portion of a bonus into a retirement account can reduce taxes.
• Using the monthly car repayment amount to build up savings can help with future car purchases.
• Financing cars at high interest rates is not advisable, except in rare cases of favorable finance deals.
• Being a shareholder rather than a client of financiers can be more beneficial in the long run.

Get more insight on how Prescient Investment Management can help you here.

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