Investing 102

[Flash68]

The hot rods are paid for (of course) but the 2 daily drivers still have a loan them -- why? Because the rate is 2%! (Same theme - I can make more return on that money in a bad year).

Hey, just because Dave Ramsey is scared to death of debt (due to his previous Bankruptcy) doesn't mean you have to be.

Not all debt is evil or crippling. It's a tool in the toolbox.

Keep on truckin buddy....

[Vegas69]

Originally Posted by Flash68

The hot rods are paid for (of course) but the 2 daily drivers still have a loan them -- why? Because the rate is 2%! (Same theme - I can make more return on that money in a bad year).

Hey, just because Dave Ramsey is scared to death of debt (due to his previous Bankruptcy) doesn't mean you have to be.

Not all debt is evil or crippling. It's a tool in the toolbox.

Keep on truckin buddy....

How do you think I've bought the 11+ properties I've owned? Using other peoples money. I read Rich Dad/Poor Dad as a young man. You aren't pulling the wool from my eyes. That's a big part of my financial success.

This reminds me of a good buddy in Phoenix. He always told me that he hated money in the bank and he leveraged it all out. He did extremely well and then went broke in 2008 including losing his primary residence. I'm talking from baller status to zero in no time flat plus a BK.

I know you are likely more conservative and have far better income stream than my buddy, but poor economies do come and so do bad streaks stocks and real estate. We've all been flourishing and riding a giant wave for a long time. Sounds kind of familiar.....

[out2kayak]

Originally Posted by Vegas69

How do you think I've bought the 11+ properties I've owned? Using other peoples money. I read Rich Dad/Poor Dad as a young man. You aren't pulling the wool from my eyes. That's a big part of my financial success.

This reminds me of a good buddy in Phoenix. He always told me that he hated money in the bank and he leveraged it all out. He did extremely well and then went broke in 2008 including losing his primary residence. I'm talking from baller status to zero in no time flat plus a BK.

I know you are likely more conservative and have far better income stream than my buddy, but poor economies do come and so do bad streaks stocks and real estate. We've all been flourishing and riding a giant wave for a long time. Sounds kind of familiar.....

[Flash68]

Originally Posted by Vegas69

How do you think I've bought the 11+ properties I've owned? Using other peoples money. I read Rich Dad/Poor Dad as a young man. You aren't pulling the wool from my eyes. That's a big part of my financial success.

This reminds me of a good buddy in Phoenix. He always told me that he hated money in the bank and he leveraged it all out. He did extremely well and then went broke in 2008 including losing his primary residence. I'm talking from baller status to zero in no time flat plus a BK.

I know you are likely more conservative and have far better income stream than my buddy, but poor economies do come and so do bad streaks stocks and real estate. We've all been flourishing and riding a giant wave for a long time. Sounds kind of familiar.....

Bummer about your buddy. You shoulda had him call me in 2007 .. woulda told him to sell his RE like I did. Greed is a b!tch.

Rich Dad / Poor Dad was a decent read .... in sophomore year of college. 😂

Not sure I’d consider myself a conservative investor, but we’re a dual income family now and my wife’s niche is like death and taxes ... it knows no economic cycle. So that’s nice.

While a 30-40% drop in local RE values (or rents) would suck in theory, it wouldn’t cause me to lose sleep at night. We’re not very leveraged.

We also drive 12 year old and 5 year old vehicles. So no baller status here.

[WSSix]

I think you guys are hitting on a few good points that people often over look. Debt has been talked about here before but I'd wager a lot of people, for whatever reason, put their daily drivers in the "necessary debt" category and I disagree completely. My Tahoe is a 2006 that I bought two years ago with 135k. I'm looking at buying another toy that's less than 15k and at minimum 15 years old. I won't carry debt on them. My fiancee's Fit is a 2010 model that's long been paid for. Car's today are very reliable for the most part. Buying a used or older one for cash frees up so much money to be put into assets that actually appreciate. No car any of us are going to buy and use as a daily will appreciate. Unless you can write it off for work/taxes, it's costing you money. Finding ways to minimize that cost is great. Apply that same perspective to areas of your life where it's relevant and see how much more money you suddenly have available. I just think a lot of people aren't willing to truly be honest with themselves concerning what they really need to spend their money on. If they would, I think they'd be better off financially.

[SSLance]

My daily is a 2002 with 230,000 miles on it, no plan on upgrading it anytime soon. Wife's is a bit newer 2012 with 110,000 miles. Both owe me nothing...

Newish Escalades and Mercedes SUVs rule my neighborhood, along with new jacked up 4x4 trucks. I'm betting the majority of them have larger car payments than my mortgage payment.

[Vegas69]

Originally Posted by SSLance

My daily is a 2002 with 230,000 miles on it, no plan on upgrading it anytime soon. Wife's is a bit newer 2012 with 110,000 miles. Both owe me nothing...

Newish Escalades and Mercedes SUVs rule my neighborhood, along with new jacked up 4x4 trucks. I'm betting the majority of them have larger car payments than my mortgage payment.

That's the real American dream! They can keep the shackles on while you live well below your means.

[GregWeld]

I always like the "I can afford it" statement when it comes to MAKING PAYMENTS....

NO..... if you're making payments..... then YOU CAN NOT AFFORD IT. Affording it means you bought it - straight up. Period.

Putting 10% or less down on a house..... Yeah - NO. You really shouldn't be in that house (YET).

Being in debt on depreciating assets.... Yeah about that.... Not the way to EVER get ahead. Try buying something that you can pay for -- and if you can "afford" to make payments - make that payment to your savings account instead of to the lender. Next time you go to the "jacked up truck store" -- I'll bet you look at that pile of cash it took you 5 years to save, a little differently. Guaranteed you won't be in such a big hurry to piss it away.

[captainofiron]

Originally Posted by SSLance

My daily is a 2002 with 230,000 miles on it, no plan on upgrading it anytime soon. Wife's is a bit newer 2012 with 110,000 miles. Both owe me nothing...

Newish Escalades and Mercedes SUVs rule my neighborhood, along with new jacked up 4x4 trucks. I'm betting the majority of them have larger car payments than my mortgage payment.

One of my coworkers, younger guy, has very nice cars and I was always curious how he managed to pay for it all. I finally found out at his going away party, he found a higher paying job, he rolled his car payments into his refinanced mortgage....

[vdrivinmike]

Originally Posted by SSLance

My daily is a 2002 with 230,000 miles on it, no plan on upgrading it anytime soon. Wife's is a bit newer 2012 with 110,000 miles. Both owe me nothing...

Newish Escalades and Mercedes SUVs rule my neighborhood, along with new jacked up 4x4 trucks. I'm betting the majority of them have larger car payments than my mortgage payment.

I relate 100% here in Orange County. I actually take a good amount of ribbing for my 03 F-150 XLT daily driver.