Use Mutual Fund to Pay Off Car?

Dave suggests what Patrick should do with $70,000 in mutual funds and $76,000 in debt.

QUESTION: Patrick just refinanced to a 15-year fixed mortgage.  He has about $70,000 in a mutual fund and has a $6,000 car payment and a $70,000 mortgage.  Should he use his mutual fund to pay off these two debts, even if he doesn’t think he’s going to be in this house much longer? 

ANSWER: Withdraw the $70,000 and pay off the car today.  Then finish paying off the house in about 3 months.  Finally, take the amount you were putting toward car and house payments and have that automatically drafted into good growth stock mutual funds. You'll have that account back up to $70,000+ in no time!

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