Who's letting investments pay for their truck??

[Shane361]

my friend, sounds like you are overextended to begin with.

investing makes things too expensive.

But you are buying an 85k truck?

wow, I can't comprehend the logic there. not calling you stupid, but take a step back and rethink what you are doing.

I don't think you have been paying attention...my friend.

 

[Raptorbegone]

I don't think you have been paying attention...my friend.

on no. I'm paying very good attention.

you think that your payment is too high monthly. so you put an initial big chunk down. just so the monthly payments sound a bit sweeter to your ear.

which really makes no difference at all.

except that you don't have any chance to invest that initial chunk.

you do you

 

[Shane361]

on no. I'm paying very good attention.

you think that your payment is too high monthly. so you put an initial big chunk down. just so the monthly payments sound a bit sweeter to your ear.

which really makes no difference at all.

except that you don't have any chance to invest that initial chunk

Like I said, I'm sure you would come out ahead in the end. You're paying $1500 a month and investing the 85K...got it. I'm sure you're better off financially than I am, seems so if you're truthful and I have no reason to believe otherwise. My 400K house payment and my $600 Truck payment are paid for with my previous monthly retirement check. Now I was paying $600 for my Mustang and $600 for my Truck with ease...sure I could do $1500 easily. I sold the Mustang I never drove for 34K and have 17K+ equity in my current Truck and will get a loan for the rest at 1.78%. In this aspect I can keep my House and Truck paid for without dipping into my current career fields paycheck. So overextending, not in the slightest. So I'm sure you're suggesting invest the 34K and get a loan for the remainder. Correct?

 

[COLORAP303]

Not everyone can have zero debt. Not everyone can pay 400K cash for their house, I couldn't. My freedom comes from having the ability to pay for my truck and mortgage payment monthly without having to work, yet I work. There are so much contradictions in so many posts here.

There are varying degrees here and no one is saying you’re doing it wrong. I chose to drive a salvage title expedition until I paid everything off. It worked for me. Point is, you could skimp in other areas and pay cash for even the house and then get more or less what you want as you have supreme freedom.

 

[COLORAP303]

The rule of 72. look it up

At an expected 10% rate of return an investment will double in 7.2 years.

so the next time you got the cash to pay for a raptor in full. You might think twice when the S&P500 has a very likely chance to double that money during the time the loan would have been.

Is it worth that "peace of mind" you have from a paid off vehicle from day one? hell your choice

I wonder what the rule is the other way? When your $$ halves. I can’t do the math. Rule of 82? Haha

 

[COLORAP303]

Some might argue that freedom is living within your means and making more than you spend. That doesn't necessarily mean zero debt.

Zero debt is just another level. Income drops and you have no debt you will have more of a chance at being in the situation you outline.

 

[sixshooter_45]

Worked hard all my life, still working at 65 and plan on retiring at 67.

Between pension and SS will probably only bring home about $5,800.00 between me and wife pre tax.

Only had great paying jobs the last 25 years but wife stayed home which was fine with me.

2019 Raptor paid off, owe only $9,000.00 on her 2019 Escape, paid off in next few years.

I worked in manufacturing for 24 years and every time the economy took a dive so did manufacturing, me. Finally had to file for bankruptcy which was very difficult for me to do but I had no choice. So I finally changed careers.

Had some money in a 401k but paid other debt off and had a healthy down-payment on my Raptor, still owe about $62,000 on the house but only owe about 4 more years after retirement so that will help.

Almost invested in Bitcoin right after it started but the research then scared me away, my loss.

Have a some money in firearms, ammo, and a small amount left in my 401k. Still I really won't need a lot after retirement but do wish I would have tried to diversified a little better.

Also have some tied up in G & S

Highest credit score was 819 not to long ago which is nice I suppose.

I have about $1,500.00 freed up a month now and will pull my retirement check my last year so will have around $4,000.00 freed up a month for my last year prior to retirement so I plan on purchasing some more G & S and maybe investing in Bitcoin or Ethereum.

So whilst not setting the world on fire I've tried to do the best I could.

Always wanted to apply my statistical knowledge on stocks and such but never made time for it.

If we see hyperinflation which I believe we will, a lot of us will be hurting. Social Security is going broke and pensions may collapse along with the dollar, hope not but it's not looking good.

See what you'll did, made me spill the beans.

Ammo for sale, LOL!

 

[Raptorbegone]

Like I said, I'm sure you would come out ahead in the end. You're paying $1500 a month and investing the 85K...got it. I'm sure you're better off financially than I am, seems so if you're truthful and I have no reason to believe otherwise. My 400K house payment and my $600 Truck payment are paid for with my previous monthly retirement check. Now I was paying $600 for my Mustang and $600 for my Truck with ease...sure I could do $1500 easily. I sold the Mustang I never drove for 34K and have 17K+ equity in my current Truck and will get a loan for the rest at 1.78%. In this aspect I can keep my House and Truck paid for without dipping into my current career fields paycheck. So overextending, not in the slightest. So I'm sure you're suggesting invest the 34K and get a loan for the remainder. Correct?

at a low interest rate I'd suggest getting a loan for as much as possible and investing the rest, yes.

Another logical reason for not paying off large chunks of expensive vehicles from the start is the possibility of an accident totaling the vehicle. Keeping that chunk of money gives a person more freedom to deal with life's issues that come up. once you give it to the bank, it's gone.

 

[Raptorbegone]

Worked hard all my life, still working at 65 and plan on retiring at 67.

Between pension and SS will probably only bring home about $5,800.00 between me and wife pre tax.

Only had great paying jobs the last 25 years but wife stayed home which was fine with me.

2019 Raptor paid off, owe only $9,000.00 on her 2019 Escape, paid off in next few years.

I worked in manufacturing for 24 years and every time the economy took a dive so did manufacturing, me. Finally had to file for bankruptcy which was very difficult for me to do but I had no choice. So I finally changed careers.

Had some money in a 401k but paid other debt off and had a healthy down-payment on my Raptor, still owe about $62,000 on the house but only owe about 4 more years after retirement so that will help.

Almost invested in Bitcoin right after it started but the research then scared me away, my loss.

Have a some money in firearms, ammo, and a small amount left in my 401k. Still I really won't need a lot after retirement but do wish I would have tried to diversified a little better.

Also have some tied up in G & S

Highest credit score was 819 not to long ago which is nice I suppose.

I have about $1,500.00 freed up a month now and will pull my retirement check my last year so will have around $4,000.00 freed up a month for my last year prior to retirement so I plan on purchasing some more G & S and maybe investing in Bitcoin or Ethereum.

So whilst not setting the world on fire I've tried to do the best I could.

Always wanted to apply my statistical knowledge on stocks and such but never made time for it.

If we see hyperinflation which I believe we will, a lot of us will be hurting. Social Security is going broke and pensions may collapse along with the dollar, hope not but it's not looking good.

See what you'll did, made me spill the beans.

Ammo for sale, LOL!

Totally understand what you are saying. And it's great you are being freed financially.

I think it should be kept in mind that a persons time horizon matters a bit.

Which brings into the discussion compound interest. You need time to make it work for you.

Example. My mom bought a house recently. She is in her early sixties.

So my advice to her was get the lowest possible payment per month and to never pay off more of the home than that monthly payment.

Why?

Because she is already old. Chances are she will die before it's paid off. And since the payment per month doesn't change right up until the day it is paid off, why give the bank more money?

If a person was younger, then sure the benefits of paying off your home make more sense.

Even if you are 30 and buying home, i'd still recommend, if you have a low interest rate, investing the extra you have after your mortgage payment is done. Since the max return for giving the bank your extra money is a very low percentage.

 

[Raptorbegone]

Zero debt is just another level. Income drops and you have no debt you will have more of a chance at being in the situation you outline.

The freedom gained from zero debt cannot be overstated. I'm with you.

And a big part of becoming financially independent is investing. It all starts somewhere.


I think many here are along the same lines. paying off debt is a good thing, it's a matter of what you are doing with that freed up money that can make the difference.