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There are lots of caveats in the investing world. Here's some interesting numbers. Here are the S&P returns for 3- 20 year periods in recent history. Note all of these returns have been adjusted for inflation via the option in the calculator.
1998 to 2018 average return was 5.90%
1978 to 1998 average return was 12.81%
1958 to 1978 average return was 5.31%
All of these figures can be obtained by using the investment calculator link below. Just another investment tool for your tool box.
The calculator goes back to the 1871 for market returns so you can see the history of the U.S. literally play it self out Via the stock market.
Buying too much car at the wrong time or not understanding how to take control of a 401k and move funds to a safe zone such as a money market are hard lessons which can cost 10's or even 100's of thousands over a lifetime. Just understanding what control or options you have is an important step in your investment administration. Market downturns, mergers, and world events make the car buying and investing equation all the more interesting.
Of course they’re not guaranteed, but they average out to 10% or more over time. Even your worst case examples are better than most loans. You believe this otherwise you wouldn’t bother with a retirement plan.
That's nice. I know many like that also. I've also seen them lose everything in downturns, and their ability to buy anything on credit destroyed. They don't know what it's like to work in a budget that requires discipline to have funds to buy a good used item.
Anyone buying a new or nearly new vehicle automatically assumes the largest cost... depreciation. I bought my properties at the height of the housing crisis, guess what my return on investment on those are? I have sold some of my used boats and vehicles at a profit, and my sailboat certainly will gain me funds; I am a very good buyer.
Regardless, I do just fine in my lifestyle and don't have to stress that I need to earn a lot. I don't keep up with the Joneses, in the end, the Joneses try and keep up with me.
I’ve seen a lot of people lose a lot during the last recession. I’ve also seen them climb right back again. Truth be told, the “day of reckoning” for people who go in debt never really comes to those who can afford it. What you think are people living outside their means is in fact people living within their means. They just have more “means” than you do.
I have a longer loan on my daily driver but with a 1.9% interest rate. More money freed up for investments.
“A car will never, ever increase in value”
My fun car would like to differ. It’s been appreciating since I bought it.
I also sold a Supra and a Wrangler in the past for more than I bought them for. It’s rare, but never say never.
One thing I never do is buy new. Deprecation can be worse than any loan.
I agree completely, aside from the never buy new part. That really depends on the vehicle. I also think leasing can be a good option for people depending on their wants and needs.
I basically flipped a VW Phaeton after a little more than a year. I sold it for more than what I put into it via eBay.
This is actually a very knowledgeable forum. The experience and knowledge shared in this forum is part of what moves people forward. Technology is ever changing as are the variables which comprise a vehicle purchase. It's complex.
Some the threads or questions in this forum have been helpful to me and some others I have contributed too. Contributing your experience is a good thing and I wish the internet was around 60 years ago.
In most areas it isn't necessarily drunks but low income people and retirees. The bus system is designed not to be too attractive so everything from the type of buses to the quality of the drivers reflects this. In such places, there is rarely any rail service which might (and often does) attract higher income riders who are registered to vote.
Not so easily as you seem to think, but I don't 100% disagree.
Not easy, just attainable. It takes time to get where I am at. Not something that I had when I was 20 or even 30. We didn't buy our home until I was 45. We did buy when prices were down. When they were high we could not afford them. Prices have come down in the past and I am betting that they will come down again.
The mistake I have seen some people make when they can not buy a home: They buy an expensive car. I even read a comment someone made on Facebook about their new car purchase. "We couldn't afford to buy a home at these prices so we decided to buy the car instead." Not any car, no it was a new Cadillac Escalade.
I get it prices are way up there. It is difficult to buy for many. To spend the money you have saved on a luxury car because you can't buy is not the smartest thing in the world. To admit it is even dumber.
Not easy, just attainable. It takes time to get where I am at. Not something that I had when I was 20 or even 30. We didn't buy our home until I was 45. We did buy when prices were down. When they were high we could not afford them. Prices have come down in the past and I am betting that they will come down again.
The mistake I have seen some people make when they can not buy a home: They buy an expensive car. I even read a comment someone made on Facebook about their new car purchase. "We couldn't afford to buy a home at these prices so we decided to buy the car instead." Not any car, no it was a new Cadillac Escalade.
I get it prices are way up there. It is difficult to buy for many. To spend the money you have saved on a luxury car because you can't buy is not the smartest thing in the world. To admit it is even dumber.
I can't argue with that.
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