Retirement Planning - Lessons Learned

[arto98607]

Why stop buying on credit? I think this is horrible advice.

the stock market has averaged 10% returns for the last 140 years.

why would I pay cash for a tractor, when the bank is willing to give me a loan for say 6%. By taking out a loan and making monthly payments, my say 40K is still invested and making money, and all I have to do is make a monthly payment.

i Will only pay cash if the interest on a loan is over 10%, which is never.

Buying on credit means you don't own it, the financier does and they will take it away if you miss few payments for some unforeseen reason.

It is good advice for many people, at least for those who live from paycheck to paycheck and they should buy only what they can pay 100% upfront.

 

[Sigarms]

Buying on credit means you don't own it, the financier does and they will take it away if you miss few payments for unforeseen reason.

It is good advice for most people since so many live from paycheck to paycheck.

My dad was in his mid 70's when I convinced him to buy a brand new car (his first "new" car was the plastic pointiac he was driving in and was getting tired of it). I asked him what he was willing to pay. He told me 13k, no more LMAO I then asked him what he could afford per a monthly payment. He told me he could buy whatever he wanted.

I convinced him to buy a new car, he's not getting any younger, and buy whatever the frick he wan't to buy. He made his payments (always paid it off), and now that he's around 90 and he's on his 3rd brand new car (and paid it off), he has absolutely no regrets.

IF (and a big if) you don't have to live payment to payment, I see no reason why not to use someone elses money as long as you know you can afford it.

 

[newbury]

i Will only pay cash if the interest on a loan is over 10%, which is never.

Never say never
My second house was bought in 1984 when interest rates were over 12% for my adjustable rate loan.
30-Year Fixed-Rate Mortgages Since 1971 - Freddie Mac
It had a "cap" of 14 or 15% MAX. When I asked the loan officer what was the bottom "cap" they laughed at me.
I rode that loan down to about 6%.
I had a bunch of treasury bills at 14%. Used to stop downtown at the treasury building for lunch and buy them.

IF (and a big if) you don't have to live payment to payment, I see no reason why not to use someone elses money as long as you know you can afford it.

Definitely.
Borrow on an auto loan at 1%, make better money elsewhere.

 

[Sigarms]

Definitely.
Borrow on an auto loan at 1%, make better money elsewhere.

Better yet, just buy what you want to buy because you aren't taking it with you when you're dead, so enjoy it while your alive.

Don't get me wrong, you don't want to saddle your kids with your own financial burdens, but if you know you have money in the bank and can pay for it outright, why should you leave it to your kids to just piss away?

YOU worked hard to be debt free and enjoy things later. Enjoy them.

I told my dad the exact same thing when I convinced him to buy a new car for himself for the first time in a long time when he came to visit me.

Sidenote, my dad thinks he's paying a installment plan on his new sit in bath tub because he saw in the paper monthly installments available (this after I signed contract AFTER 6 quotes). Guess I trained him well as he's gotten older LOL We made out the check ourselves to pay for the work in full, and he's paying me and he thinks he's paying the bank on a finance plan. Does this make me a bad son? He loves the tub, so it's all good. least I could do for him.

 

[Larry Caldwell]

So you are happy for the taxpayers to make up the difference?

I am happy for the poor who don't get their minuscule wealth stolen by rich people.

 

[goeduck]

My financial advisors tell me my biggest problem in retirement will be not being able to spend fast enough given my German and Scottish heritage. They say I am stubborn and cheap, but tell them I am not after I ask them how much I am paying them.

 

[goeduck]

I am happy for the poor who don't get their minuscule wealth stolen by rich people.

Even the poor are free to look for other employment or to go into business for themselves. Many of us started with nothing and have never asked for assistance.

 

[Larry Caldwell]

Even the poor are free to look for other employment or to go into business for themselves. Many of us started with nothing and have never asked for assistance.

That's admirable. I got a free high school education and heavily subsidized college education courtesy of the taxpayer. It helped a lot. Washington's minimum wage is $13.69, but I doubt many people are looking to work for that. Around here, Taco Bell starts employees at $14.20. Maybe it's different in the South. Do Walmart and grocery stores only charge 50% of PNW prices there?

The $300 unemployment boost expires in September, and 26 states have already cancelled it without seeing an uptick in hiring. It looks like the "nobody wants to work" rant was just BS. People aren't willing to sit still and be screwed any more. The handwriting on the wall is, if you have employees you better keep them happy. Half of them would like to work elsewhere, and 44% already have one foot out the door.

Is now a good time to change careers? More workers are feeling good about it

In an exclusive ‘Fast Company’-Harris Poll, 59% of middle-income workers said they’re thinking about changing jobs. Remote work continues to be a draw.

www.fastcompany.com

 

[Steppenwolfe]

Even the poor are free to look for other employment or to go into business for themselves. Many of us started with nothing and have never asked for assistance.

In my experience... many who are poor, perhaps even the majority, have put themselves there through poor choices, drugs, alcohol, quitting school, or just old fashioned, I ain't going to work today. I have seen thousands like this.

 

[Doofy]

Why stop buying on credit? I think this is horrible advice.

the stock market has averaged 10% returns for the last 140 years.

why would I pay cash for a tractor, when the bank is willing to give me a loan for say 6%. By taking out a loan and making monthly payments, my say 40K is still invested and making money, and all I have to do is make a monthly payment.

i Will only pay cash if the interest on a loan is over 10%, which is never.

Reason being...always been a scaredychicken about taking risks with money. Never had disposable income to gamble with...