Who's letting investments pay for their truck??

[leinad1904]

Dunno after paying cash for my Ferrari, I figured I’d finance a portion of it to spread the wealth around. Liquidated one of my hedge funds to pay for the down payment. Anyone else besides me really hating the increased inflation as of late?

Cot damn, cash for a Ferrari? I’m clearly in the wrong career field

 

[Raptorbegone]

The scenario on borrowing the whole $85k on a Raptor at sub-3% rates, paying $1500/month and investing it becomes problematic if we have a 30-40% correction and that $85k that could have paid cash for the Raptor becomes $50k in an S&P 500 index fund, you still owe $80k+ on the Raptor that's now worth $60k due to declining asset value, and you are still paying $1,500/month.

My strategy would be to pay the $85k cash for the Raptor, take that $1500/month you'd be giving the bank to pay down your principal/interest and dollar cost average into an S&P 500 or some other good index fund for the next many, many years. Rinse and repeat. You're never caught with your pants down owing debt on a depreciating asset.

Until you can do the above, follow a Dave Ramsey type deal and drive a beater until your debt is gone (besides mortgage maybe), you've built a cash/investment stockpile and then start buying the fancy toys (i.e. Raptors, etc.).

But then again, we live in an instant gratification and FOMO society, so do whatever you want as long as you can sleep at night.

What idiot keeps their money in any particular investment that goes down 30-40%? It doesn't happen overnight in the S&P500. If you don't have a stop loss set for way before that, then.........a fool and his money.

And your right, 100% watching 85k turn into 50k would suck. Hey it could happen. You may be the unlucky schmuck that invests his money right before some historical correction. Though doubtful. No the odds are that will not happen, the sky will not fall. And EVEN IF that did happen the market during the term of that 6 year or so loan would not only come back but be way up.

It's like saying that 1 in 500 people in the usa have died of covid. well if you believe the numbers they are putting out, then they would be right. gosh that sounds like a lot!

However. despite being the truth 80% of those deaths are in those 65 and up. Which makes a big difference for the vast amount of society. A little off topic, but the same as
not wanting to invest in the S&P500 because of fear of a correction, despite the outstanding performance history it has.

It's like not wanting to drive for fear of an accident.

Investing is not just simply free money. It takes common sense. If you don't have any, well then the all cash route is going to be more foolproof for you, if you can afford it.

 

[Ragnar]

Cot damn, cash for a Ferrari? I’m clearly in the wrong career field

I was being sarcastic…. I am a working man that hasn’t ate a carb since the early 2000s. Have one hell of a 6 pack

 

[WTX]

What idiot keeps their money in any particular investment that goes down 30-40%? It doesn't happen overnight in the S&P500. If you don't have a stop loss set for way before that, then.........a fool and his money.

And your right, 100% watching 85k turn into 50k would suck. Hey it could happen. You may be the unlucky schmuck that invests his money right before some historical correction. Though doubtful. No the odds are that will not happen, the sky will not fall. And EVEN IF that did happen the market during the term of that 6 year or so loan would not only come back but be way up.

It's like saying that 1 in 500 people in the usa have died of covid. well if you believe the numbers they are putting out, then they would be right. gosh that sounds like a lot!

However. despite being the truth 80% of those deaths are in those 65 and up. Which makes a big difference for the vast amount of society. A little off topic, but the same as
not wanting to invest in the S&P500 because of fear of a correction, despite the outstanding performance history it has.

It's like not wanting to drive for fear of an accident.

Investing is not just simply free money. It takes common sense. If you don't have any, well then the all cash route is going to be more foolproof for you, if you can afford it.

I agree

It’s a Rich dad poor dad vs. Dave Ramsey mentality.

I’m a rich dad poor dad type of guy myself.

 

[Raptorbegone]

I agree

It’s a Rich dad poor dad vs. Dave Ramsey mentality.

I’m a rich dad poor dad type of guy myself.

never read it. But apparently it's a great book

 

[WTX]

never read it. But apparently it's a great book

One might say, millions sold.

 

[COLORAP303]

i invested in a welder, which def pays for my truck... lol

And skills like this are going to only become more valuable to the market.

 

[COLORAP303]

never read it. But apparently it's a great book

I say live Dave Ramsey until liabilities are paid off. THEN switch to rich dad poor dad. By liabilities I mean the definition of rich dad poor dad. Ie you house and truck are liabilities. Unless you need your truck to generate cash flow.

 

[Raptorbegone]

I say live Dave Ramsey until liabilities are paid off. THEN switch to rich dad poor dad. By liabilities I mean the definition of rich dad poor dad. Ie you house and truck are liabilities. Unless you need your truck to generate cash flow.

I don't think that most people ever end up with their home paid off

 

[Raptorbegone]

One might say, millions sold.

So I hear. Then again millions of idiots are making videos on tik tok right now too.