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Sorry. A tad OFF.
Better get more information on that IRA or 401K.
Sadly, probably few or none will actually spend the time to view the entire video.
The variables are so large that any discussion is, by nature, very general.
Does the buyer have a family? How many children?
How old is the buyer?
What skills does the buyer have?
When I talk IRA, I am talking about someone 10 years or so into their working life. Most of the money in retirement accounts is made by the compounding of investment returns. Anyone who wants to retire decently - and is a couple (with a family) needs to have a couple million in net worth by the time they reach retirement age.....less or more depending on income, inheritance, whether their kids pay them back for some stuff, etc.
There are no hard and fast rules due to the variables involved.
...And yet, I think if someone came on his show and said, "I want to pay $25K cash for a new car" and didn't have that net worth, he might not say no...
He doesn't tell people to sell cars they own money on unless its a complete monster to their income/budget situation. If someone goes on the show and asks that, assuming they aren't making $24K and driving a $40,000 car, his next question is "Do you like the car?"
And honestly, every financial adviser type that I've ever heard, from celebrity Financial advisers to life insurance salesmen to the Edward Jones/Fidelity whatever guy on the corner, says something similar, although they don't paint into a corner like DR says...Typically they say, "Buy a used, few year old car and drive the wheels off" or something of the sort.
But my point is that if your life depends on what you can contribute to an IRA, then you should be living in a tent and riding a bike or bus to work. So you can fully fund that IRA!
Life is a mix of spending for today versus saving for tomorrow. Blanket generalizations of “new cars are a waste of money” fail to account that any car is a waste of money, just ride a bike or take the bus if a car puts you in the poor house.
Rocko, I don't know your age, but this is so very wise. I've spent my whole life planning for the future, and now I'm almost 59 and I am ready to start enjoying life.
I lived with an unpleasant man for 10 years. My husband had us living under an "austerity plan" where we were going save every single penny for his retirement. He died (by his own hand) weeks before his planned retirement.
Life is screwed up, hard-scrabble and stressful as hell. If you can find a little joy in some Detroit Iron (or Japanese plastic), I say go for it.
The thing to keep in mind about financial advice, is that its like dietary advice.
The right thing for a 50 year old obese pre-diabetic is different than a 30 year old that runs 30+miles a week. Neither of them SHOULD drink three bottles of wine, but one of them can eat a lot of dietary fat and carbs, the other needs to absolutely watch it...
To some, cars are a hobby and dont mind spending the money. Can you put a value on what makes you happy if you can afford it?
My wife and I dont have any children, nor do we plan on having any. That alone frees up lots of $ to do what we enjoy. For this reason I lease a new car every 3yrs. Is it financially beneficial for me? No, but neither are lots of things. I laugh at those who criticize my decision to “keep throwing money away” on leases every 3yr years, yet the same type of guy preaching to me has a 2 pack a day cigarette habit and drinks a case of beer per week.
I do what makes me happy so long as it’s within my budget. I dont plan on working myself to death only to leave my money behind when I die for someone else to enjoy.
To some, cars are a hobby and dont mind spending the money. Can you put a value on what makes you happy if you can afford it?
My wife and I dont have any children, nor do we plan on having any. That alone frees up lots of $ to do what we enjoy. For this reason I lease a new car every 3yrs. Is it financially beneficial for me? No, but neither are lots of things. I laugh at those who criticize my decision to “keep throwing money away” on leases every 3yr years, yet the same type of guy preaching to me has a 2 pack a day cigarette habit and drinks a case of beer per week.
I do what makes me happy so long as it’s within my budget. I dont plan on working myself to death only to leave my money behind when I die for someone else to enjoy.
There is indeed no taking it with you. Enjoy some of it.
$25k in your green dollars available. Buy a car for $25k cash you have a car and $0 dollars left.
Borrow $25k at 2.5% and invest the 25K get a 4-5% return and you have a car and a few bucks.
His advice is generalized chicken scratch.
Or just buy a car for $10K or $15K.
Not saying I agree with DR, just playing devil's advocate.
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