Investing & financial advice discussions

[North7]

Yeah! I'd like to get a low note though, and my credit score might be a bit sad. Most people tell me that's a bit crazy to throw that amount of cash out. Maybe it is... Perhaps I shouldn't. We'll see....

2nd:
Redefine "asset" as ONLY something that actively puts money in your hand. Most defnitely not a car. Usually not a house that you live in either....

Do you have a house yet? That MIGHT be a lot better place to sink your money if you do not own your own. MIGHT.... there are no guarantees.
Not a true asset, but a damn sight better than a car.

I don't think I have ever profitted from the dozens of vehicles I have owned, they are "expendable".
I have profitted on the two houses I have lived in and sold, and this one I'm in now, I will possibly be able to payoff the next house completely when I sell.

Sorry. Class over. lol

3rd:
Do you have a serious Retirement savings started, 401K, IRA, Roth IRA, etc?

Toys come and Toys go (Bronco) but you will never get to retirement and say, "I wish I had not saved so much money for retirement"

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[Ponderess]

3rd:
Do you have a serious Retirement savings started, 401K, IRA, Roth IRA, etc?

Toys come and Toys go (Bronco) but you will never get to retirement and say, "I wish I had not saved so much money for retirement"

Uhm no... I figured I'd worry about that once I get in my 30s, I'm 25 now but thanks for the life advice. Been living the go big or go home mentality but I suppose that's only for people who actually got it like that.

 

[North7]

Uhm no... I figured I'd worry about that once I get in my 30s, I'm 25 now but thanks for the life advice. Been living the go big or go home mentality but I suppose that's only for people who actually got it like that.

Start saving at age 35 with an average stock market return of 7% and you have $714K at retirement. Start saving earlier, at age 25 and you have $1.521M, or $807K MORE.

The quality of life in retirement is based on the choices you make early in life. Save vs Toys, the choice is yours, if you able to afford both, wonderful.

https://www.daveramsey.com/smartvestor/investment-calculator

 

[Ponderess]

1st:
Generally, the consensus would be : If there is very cheap financing available , 0%, 1% ...a few % .... take adavantage of that and put the cash to work for you in some other manner. "Free money"

Some folks might use low APR's to afford more vehicle, probably not wise to make yourself "car rich" considering most vehicles are extremely poor investment choices.....which is another reason to not dump all your cash on hand into an "asset" that will only depreciate.

2nd:
Redefine "asset" as ONLY something that actively puts money in your hand. Most defnitely not a car. Usually not a house that you live in either....

Do you have a house yet? That MIGHT be a lot better place to sink your money if you do not own your own. MIGHT.... there are no guarantees.
Not a true asset, but a damn sight better than a car.

I don't think I have ever profitted from the dozens of vehicles I have owned, they are "expendable".
I have profitted on the two houses I have lived in and sold, and this one I'm in now, I will possibly be able to payoff the next house completely when I sell.

Sorry. Class over. lol

Damn I really didn't think I'd end up getting schooled here but that's okay! Everything u said was helpful. People would just look at me crazy and say that's a bad idea, but wouldn't explain why. I'm around that first car in my name age, so I thought I was doing myself a favor paying as much as possible upfront-thinking I'd get a good deal. I obviously don't know much about cars- but I'm happy to learn.

 

[Nickp]

Uhm no... I figured I'd worry about that once I get in my 30s, I'm 25 now but thanks for the life advice. Been living the go big or go home mentality but I suppose that's only for people who actually got it like that.

As a fellow 25-year-old, at least start a little bit. It’s insane how much value you get out of your 401k. Since it’s pretax money from your marginal rate it hurts way less to save into it. If you have a company match, for me personally I basically triple my money. I put in $100 a check, but my check really only goes down like $60 or so since it’s pretax. And then my company matches 50%. So for $120 out of pocket per month, I’m getting $300 deposited. And then that grows etc

 

[Ponderess]

Start saving at age 35 with an average stock market return of 7% and you have $714K at retirement. Start saving earlier, at age 25 and you have $1.521M, or $807K MORE.

The quality of life in retirement is based on the choices you make early in life. Save vs Toys, the choice is yours, if you able to afford both, wonderful.

https://www.daveramsey.com/smartvestor/investment-calculator

If I'm being totally honest, I looked at retirement as "eh I'm sure I'd manage" and something I'd rather not think about because there's so much in the present to worry about. Nor did I look at cars as toys, but like life pillars equal to a house, I'm understanding why ppl are calling them toys now though.
Oh ignorance is bliss, I was hoping pouring money into a car would pay out in my satisfaction with it, but my pockets would just nullify that! Thanks for helping me adult better haha.

 

[Ponderess]

As a fellow 25-year-old, at least start a little bit. It’s insane how much value you get out of your 401k. Since it’s pretax money from your marginal rate it hurts way less to save into it. If you have a company match, for me personally I basically triple my money. I put in $100 a check, but my check really only goes down like $60 or so since it’s pretax. And then my company matches 50%. So for $120 out of pocket per month, I’m getting $300 deposited. And then that grows etc

I'd tell myself that oh I got time, worry about it later. Nor looking at myself as something to put money in. I'll have to see how my 401k is set up at work...

 

[mike.s]

start a ROTH IRA and put whatever you can into it. it is post tax dollars going in but it is tax free growth on the back end. at 25yo if you just put a 100 a month, you will have a very nice retirement. i wish i would have started at that young of an age, now playing catch up and putting 1500 a month to try

 

[FirstOnRaceDay]

I’m only 28 I’ve been investing for 4 years now. And boss is very nice and puts 15% away automatically. Should be pretty close to 6 figures by my early 30s!
my goal is millionaire before 55. My advisor says I’m more than on track.

I work with all 40-50 year olds and they told me to start early or I’ll regret it and I’m happy I listened

as far as cars go.

If you are buying, It’s pretty simple.
low apr <3% minimal cash down and invest the money instead.

anything over 10% pay down ASAP and put as much down as possible.

anything in the middle just your standard 10% down and pay off normal.

obviously always try to make larger payments then minimum. And if you do pay more than minimum MAKE SURE it goes to principal!

 

[MaverickMan]

Im poor (for my state) and just plan on working in some fashion till i cant, and if i cant work then im useless and pretty much done. Luckily we have land in hawaii and aside from being able to grow a lil food here I am working on planting coconut trees. if I can plant 100 trees thats over $15000 a year in coconuts. Im hoping my ford stock and a old mutual fund will get me to something like 50,000 by old age. The land will be paid for. and I should have enough tools by then to get by fixing junk for folks and fabricating cool thing to sell on occasion.

I was never gonna have a easy retirement but I have never had an easy life. But it sure has been interesting so far at 36. I mean I live in a rainforest and work at waterfall in the middle of an ocean. And thats not including the years I spent living and travelling in vans. Or the years I learned how to build and drive 4x4s and hotrods. Also i have been to 48 states and camped in nearly every one.

There is something to be said about the pursuit of moments over the pursuit of wealth.

 

[Blksn955.o]

One of the best sayings I have heard about saving for retirement is your dollars invested today grow from compound interest to become generals in 20+yrs. Start saving as much as you can as early as you can...if nothing else start you are literally screwing your future self by not starting.

If you get a 401k and a match take full advantage of it to get whatever match you can get. If you have to think of it as screwing your employer for every cent you can legally it is FREE MONEY.

Also think about tax's in your future, all pre tax will have impacts to your retirement tax amount. Say your tax rate changes at 75k. You take out of your pre tax pool of withdraws to that line means that it costs you more to withdraw more than that. However, add a post tax savings account and you can supplement without greater penalty as you already paid the tax on it. So your maximizing your withdraws from a tax perspective.

Wife and I each have our own Roth and traditional IRA accounts and our own 401k accounts...yes 6 accounts total. Targeting a pre tax contribution of 17-20% yearly.

 

[HoosierDaddy]

Thus far, as a 50yo, I agree 100% with all that has been written above.
Retirement
House
Toys
in that order.

Oddly enough, the desires of life occur in the opposite order

I did not have the self discipline to start in my early 20's but THANKFULLY ........ my skilled trades union did it's job and was looking out for me the whole time.
I have a defined benefit plan (pension) AND an annuity that has been funded through our wage and benefits package since I joined at 27 1/2 yoa.

My primary concern looking onto my retirement years will be healthcare costs if I retire before medicade/ medicade kicks in OR if they defund it etc....

 

[dgorsett]

As an old guy: don't spend more than $500 for anything you can't shoot, drive or live in, don't spend more than $2000 for anything you can't drive or live in and don't pay more than $40K for anything you can't live in.
Never finance anything but a car or house.
Never finance a car for more than 4 years.
Never carry a credit card balance
Contribute to your 401k right after paying rent and buying a loaf of bread.
Don't upgrade a trim level to get the one item you want, forego it, get it al a carte, aftermarket or buy used in a year or two.

 

[HoosierDaddy]

As an old guy: don't spend more than $500 for anything you can't shoot, drive or live in, don't spend more than $2000 for anything you can't drive or live in and don't pay more than $40K for anything you can't live in.
Never finance anything but a car or house.
Never finance a car for more than 4 years.
Never carry a credit card balance
Contribute to your 401k right after paying rent and buying a loaf of bread.
Don't upgrade a trim level to get the one item you want, forego it, get it al a carte, aftermarket or buy used in a year or two.

and if you can swing the 15 year mortgage, you'll thank me later!!!! Oh, and LOCATION LOCATION LOCATION!!!

LOL

 

[Blksn955.o]

15yr vs 30yr is SOOOoooooo much better if you can swing it. I spent 14yrs in the mortgage business (left last year) for the @1/3 increase in payment cutting 1/2 of payments is very hard to beat.

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