Prices with and without 0% loan?

[RickB]

I don't get or see the logic. You shouldn't have $50k just sitting around it should be invested, even if it just T bills. So its how cheap can I get money, what I found is auto loans the cheapest money I can get so I put the lean my new mustang, then pay off as dividends come in. So what I view is total layout. If cash discount exceeds the cost of interest. So with the zero interest don't payoff early, and my 50k is making 7% with a dividend stock. after reading about KTAC I put it on the machine like an extended car warranty.

7% dividend stocks? Don’t be a tease.

 

[RoyKing]

MPLX NO TEASE

 

[RickB]

MPLX NO TEASE

MPLX appears to be a young Master Limited Partnership. I had one experience with an MLP, it was successful but I have no appetite for that asset class. I owned some EPB and when Kinder Morgan acquired it I opted to liquidate rather than take the stock swap. That proved to be an excellent choice.

 

[Jchonline]

A few things.
First, this is the stock market. The company could axe the dividend at any time.
It has only been around for 3 years.....
Third, the dividend is 7%. If you invest 50k,and lets say the ETF goes down to 30k. You are now getting 7% of 30k, which is no longer 7% of 50k. Don’t forget about that 0.45 expense ratio and taking that out of your calculation. Not only that, but if the fund goes even lower, you not only loose your dividend, but you are out that cash as well.

Lastly, your cash is now tied up in that fund. What if you need that 50k for emergency funds? Sorry but having liquid assets in case of emergency is good financial advice.

 

[RoyKing]

It not an ETF, started in late 2012, it's cash flow exceeds the dividend easily, they are self funded, just acquired another group. If you bought when first came out is was paying .18 now in Jan it will be .70, they own no wells, it's a midstream company moving gas and oil. Gas volume keeps climbing. True if you bought at 80 you would be not happy if you had to sell, but income has kept rising. Tax free income.

 

[JOHNTHOMAS]

I always take the free to almost free money whether I have the cash to pay it off or not. If anyone or almost anyone can't make money on buying and selling "stuff" and with larger sums then buying and selling real estate. Buying and selling real estate can/has had double digit returns for me for years. There are always different levels of real estate to invest in. Mobile homes with land rentals are usually the biggest return for a small investment. I bought one almost 40 years ago for $9000, rented it for $250 a month for two years and then sold it for $12000. Bought lots of real estate since then and later bought 20 plus house and storage buildings with only $50,000 down and $3000 to $4000 clear monthly return for 10 years then sold it all two years ago and paid all debts and receive $3000 month for ten years carrying first lien at 3.5% Yes, I did work about 3 hours three days a week for several years for that return. Two years ago bought 6 lots $33,000 and sold one for $13000 and asking $16500 each for two of them and the other three are not for sale across the street from my home.
I started buying older cars in the 1980s and would immediately place ads in the paper and sold 5 within 5 months making about $500 per car on $3000 sale price and worked with a local used car dealer to assist with some tax aspects. Not bragging but I've always been able to make 25/50/100% returns on money usually within months. Did silver jewelry out of my briefcase once with incredible profits and also sold limited edition collector art prints with usually 25 to 50% profit in weeks. I currently do online auctions but not selling much, yet. Just bought two S&W revolvers for $360 along with 4 dressers that were 50 cents each. Lots of ways to make money with little risk and using knowledge one aquires over their life time. So, yes I always take Kubota 0% to the max and use the money.

 

[RoyKing]

I had rental property but the market turned ugly around 2000, could not find good tenants regardless of their credit scores, and lots of turn over which always cost money and time, so I did one last round of fix up and sold them one through agent who suppose to be good, lots of awards. Her practically knowledge was minimal she was way off on downside of price. She did do great pics on the house even brought items in to decorate we posted online two hours later we had two bidders than ran it up past the asking price. For rest I just put for sale signs with the price on them and people would call and offer less and nicely say no, within 3 weeks each were gone. Don't miss it.

 

[JOHNTHOMAS]

I had rental property but the market turned ugly around 2000, could not find good tenants regardless of their credit scores, and lots of turn over which always cost money and time, so I did one last round of fix up and sold them one through agent who suppose to be good, lots of awards. Her practically knowledge was minimal she was way off on downside of price. She did do great pics on the house even brought items in to decorate we posted online two hours later we had two bidders than ran it up past the asking price. For rest I just put for sale signs with the price on them and people would call and offer less and nicely say no, within 3 weeks each were gone. Don't miss it.

No free rides and managing rental property isn't for every one. Lots if people think it's just buy and collect monthly checks and it can be but usually takes a special skill set/personality. I obtained a Real Estate license some years ago and later a Real Estate Broker and then taught Real Estate and Construction at the Cillege for 6 years. Did my homework and understood the business along with having a Business Degree and experience. No, rental property isn't for every one. My buyers from 2 years ago are ready to sell, seeing the requirements for success and they are succeeding with consistent $9000 to $10000 monthly income but stressed having never been self employed before and understanding the difference between investment and personal usage.

 

[Jchonline]

RoyKing my point is it is a risk. Sometime it is appropriate to have money that is not subject to risk “ie emergency funds”. If anything happens to gas, then you might be in trouble. Or it could be fine and continue to go up. However you are assuming this risk vs. reward.

Fidelity lists this as at ETF (if I am looking at the correct ticker) that is why I mentioned it. I do hope it works out for you!

 

[AGTtactical]

I just bought (3 weeks ago) a 2018 L6060HST. I got price quotes from 7 dealers in our area. There was a difference of $5000 between the highest quote to the lowest. The price was not affected by financing. In fact, I didn't discuss financing until after I had a written quote. There was no change in price. One dealer told me he couldn't get my tractor before the new year, and therefore couldn't guarantee the price or 0% financing. That's bull, because Les at Mason Tractor said there is a form they can fill out which guarantees the price and loan rate if it changes after you agree on the terms. Les was super...he actually had the best price, and he delivered to me before the end of the year...something no one else could to. Les (770) 468-9444, SE of Atlanta.

Zero percent financing is a bargain. You pay back the machine with inflated dollars., and keep your own money invested working for you. The insurance is worth it too. I had a stump roll of the top off a massive burn pile under my claw grapple and into my glass door on my Kubota CTL. $250 deductible, and my dealer put in an armored door replacement on for no extra cost (a $3000 option). That repair alone paid for nearly all my insurance premiums.