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11-22-2017, 07:52 PM | #23 |
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Suze Orman has tits and has no idea what "driving" really is
another boring save all your money to spend in heaven gal sounds real tight (maybe thats the only positive) wait not that kind huh ok well then that sux whatever happened to carpe diem |
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11-23-2017, 06:49 AM | #24 | |
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Sometimes personal finance goes beyond math. For a country with such poor financial health, simplicity is crucial. That means getting and staying out of debt. |
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11-23-2017, 08:25 AM | #25 |
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Allow me to clarify.
I am not talking about taking the $5k or $10k that you would have put as a down payment and putting that money into an investment vehicle. My comment was for VERY large down payments ($40k+) or for people that pay for an entire car upfront (like handing over an $80k check to BMW for an M3). You are right in that the $5k-$10k will basically be spent on other stuff over time if you don't put it into a down payment, BUT for the people that have $40k, $80k, or more ready to throw down on a car, that money probably isn't going anywhere fast so they should think twice about having their money work for them. And for those of us that have enough to pay off a car in it's entirety, they are probably wise enough to understand how smart investments work and should have no problem navigating. Ignorance to smart personal finance should not mean go buy a car in full. |
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11-23-2017, 09:09 AM | #26 |
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Interest rates go both ways, though. So while it's true that I could finance a car at a very low rate, it's also true that any low-risk investments also yield very little these days.
For me, the spread simply isn't worth the hassle/complexity. |
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11-23-2017, 09:23 AM | #27 |
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Right, it's not for everyone, some people just like to leave all of their money in the bank, thinking even low risk investments are too risky / complex.
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11-23-2017, 10:56 AM | #28 |
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I think about this similarly. If I’m getting a loan for less than 2%, inflation is typically 3% and my investments grow faster than the inflation rate it’s not worth it for me to put a bunch of money down. In some sense the cost of the car becomes cheaper each month over time if you consider the future value of a dollar is always decreasing. And if I can’t afford the payment structuring the loan that way, then I have no business getting the car.
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11-23-2017, 04:17 PM | #29 | ||
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I need to value money more. Car payments to me are just numbers with a "-" in front of them. Quote:
After expenses, savings, retirement, car payments, insurance payments, mortgage, etc... I am basically living pay check to pay check. I am not sure why Suze Orman gets such a bad wrap. I used to watch all of her shows. It's actually funny to see how far off people are. I remember there were many times that she did not agree with a person's purchase, but still approved them because they could afford it. One guy wanted to pay $20k for a private jet from Chicago to Boston and back. He was 39 and approved. I like that she is more about the numbers than she is about emotions. So if the numbers pan out she's good with it even if it makes no sense to her emotionally. |
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11-23-2017, 05:29 PM | #30 | |
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F U C K Debt |
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11-23-2017, 05:49 PM | #31 | |
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11-23-2017, 06:35 PM | #32 | |
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See, that's exactly what I'm talking about. People try to sound smart on the internet or to their friends, but either don't actually do it or claim unrealistic returns. |
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11-23-2017, 06:40 PM | #33 | |
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Have a great day.. |
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11-23-2017, 06:42 PM | #34 | |
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11-23-2017, 10:03 PM | #35 | ||
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11-24-2017, 08:13 AM | #36 |
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11-24-2017, 08:18 AM | #37 | |
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How diversified are those funds and what were their performances the past 2,3,4 years? I can understand a fund doing well since Trump took office but what are the historicals? I'm interested |
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11-24-2017, 08:24 AM | #38 | |
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However annualized returns since opening 20 years ago are 7.04%, so that's probably a more accurate long term planning number
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11-24-2017, 08:47 AM | #39 | |
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11-24-2017, 08:49 AM | #40 |
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While I am around that percent (17+%) this year, I have averaged just over 10% a year over the past five years.
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11-25-2017, 08:08 AM | #42 |
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I think her advice is good at the basic economics 101 level.
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11-25-2017, 08:42 AM | #43 | |
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Also, some do/did not learn at an early age so any bad habits continue throughout their life. When growing up my dad taught me well. I purchased many dirt bikes by paying a portion with my paper route and lawn cutting earnings and he would fund the rest and let me pay off a very low interest loan. Usually at some point when I got close to the end and my grades and I were good he would tell me to forget about the balance. Another one I love is when people get all exited about getting their huge tax return back from the government. Really, you let someone else have your money and sit back and wait for it? I haven't gotten a tax return back forever and usually pay a penalty which is minimal. In end though, everyone is different and some are not comfortable with any debt even if it is good debt. Just don't pay off your 2% car loan and then carry a 17% credit card bill. And don't laugh here, it has and is being done. |
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11-28-2017, 02:37 AM | #44 |
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Not EVERYTHING has to be an investment. Some people enjoy expensive meals and aged whiskey, some people want to pay a little more for the thing they sit in 2 hrs a day.
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