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If you hold on to the money while you are paying interest you are losing money unless you're holding it in something which is making higher returns than the interest rate on your debt. Not likely.
IE, if your medical and credit card debt of 50K have an average interest rate of 7%, and you hold you 200K settlement in a savings account that gets 1%, you're losing 6% of your money every year for no reason other than it seems nice to have that big number in your savings account. Your debtors own $50K of the money (and rising) every month you don't pay it off.
As long as you have a sufficient emergency fund, there is no reason to hold debt while you hold the cash to pay it off.
Sorry, I've been gone eating my beans and rice. Anyway according to Dave, he tells his sheeple they can average over 10% in his mutual funds (over the course of time. With those numbers the sheeple should finance, they would be money ahead😃😃😃
How are some people so completely unable to figure this out? It doesn't matter where they got the 1.8% financing.
You probably ought not take a saw to the branch you're sitting on. You're the one who isn't able to figure this out. The only lender who will give you 1.8% is a lender that ties the loan to the purchase of their product. No other lender will give you that rate. Do you really not understand this?
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The rate that's in the contract is the rate - if it says 1.8%, then they got 1.8% financing. This is not a hard concept for most people.
That is the stated rate of the loan. It is NOT the true cost of financing.
The bond market is another area where this exact thing happens. Bonds sell at discounts or premiums so that the investor gets market rate, rather than the stated rate on the bond itself. If you know anything about the bond market, you'll understand this. If not, study up a bit on it. It will help you to understand how the teaser rates on cars work.
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I just bought a new car for my wife, and the purchase price was completely and totally unrelated to the interest rate (1.9%, by the way). I negotiated the selling price of the car, then discussed financing. Guess what - when we elected to take the 1.% financing, the other numbers didn't change.
If, after negotiating your best price, if you paid cash, and you weren't a terrible negotiator, you would get a discount.
Not this again. You just don't get it. I'm thinking you never will. Just because you got hosed by a dealer once doesn't mean we're as incompetent as you.
Lol! Why would you think I got hosed by a dealer?
As far as incompetence goes, I can't speak to your car buying ability, but you are clearly demonstrating incompetence as to how money works. Set aside your pre-conceived notions, open your mind a little, and you just might learn something.
My credit union last year was 1.9% from 3 to 5 year new auto loan last spring. I don't know what there at now. NO preferred dealer list.
I don't borrow money that I have to pay interest on, and as such, I'm not very current on lending rates. How did that 1.9% compare to other types of collateralized loans at that time?
I don't borrow money that I have to pay interest on, and as such, I'm not very current on lending rates. How did that 1.9% compare to other types of collateralized loans at that time?
I have no idea. I don't often borrow as well. I do know motorcycles,rv's and the like were 3.9 for a time.
I know you have a thing against DR, but I would be very surprised if he has actually recommended NOT using quality index funds.
Your right, I've never heard him say not to use them. BUT, I've never heard him recommend them either, nor have I ever heard a caller ask about them, coincidental? Now I havn't heard every show for the last ten years 😂😂, so maybe he has. Eventually he will have to because any credible financial planner (with no skin in the game) would tell people they are a great option.
Dave throws numbers out all day long, it's funny he never says that index funds will out perform managed funds what, over 80% of the time. Could be higher.
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