What makes more sense...driving a long paid for old truck, or making huge payments??

[Industrial Toys]

I have not heard how GM has done. It would have been a safe bet, that if I had invested in GM, it would be kaputt today!

Just not a big fan of the whole consumerism thing. If I don't have the money, I don't buy it. It's been a good ten years since I've been in a shopping mall!

 

[MossRoad]

$56K in a SP500 fund in 2008 would be about $106K today.
S&P 5 Dividend Reinvestment and Periodic Investment Calculator - DQYDJ

 

[oldballs]

Just think what that 56K would be worth today have you invested it in GM Stock!

Did I miss something here?? I lost over $10,000 in GM stock when they were bailed out. No GM products or stock for me ever again.

 

[two_bit_score]

Well.... if you pay say $10,000 for a vehicle cash, and keep it for 7 years, your cash is gone for 7 years and your vehicle is worth about $5000. So, at the end of 7 years you lost $5000.

So lets look at taking a loan for $10,000 at 1.5% financing and make payments over 7 years, you'll end up paying back about $550 in interest.

You invest that $10,000 in the stock market aggressively and hoping for average returns, you'll end up with about $19,500 AND the vehicle that you can sell for $5000. So that's $24,500 minus the $550 in interest and you're looking at about $23,500 VS $5000, a gain of about $18,500.

Well, that leaves out the payments, taxes on the investment, and hoping there's no stock market crash, etc... and I'm sure I've missed a bunch of details, etc.... but you'll end up with about $10k more than paying cash.

but you can definitely make your money work better for you than giving it all away in cash in lump sums.

I'm told my 08 Duramax with 160 KMS that I paid 56K CDN for is worth 25-30. That's not too bad.

Anything my family or I ever did in stocks has been a disaster. Well, for us, not someone else!

And that's true for a lot of people and especially true for inexperienced investors. It one of those things that sounds easier than it is for most people.

TBS

 

[two_bit_score]

$56K in a SP500 fund in 2008 would be about $106K today.
S&P 5 Dividend Reinvestment and Periodic Investment Calculator - DQYDJ

Right and Berkshire A was only about $98K in 2008 and just check what it is now.


But if it was that easy, everyone would do it.

TBS

 

[two_bit_score]

I have not heard how GM has done. It would have been a safe bet, that if I had invested in GM, it would be kaputt today!

Just not a big fan of the whole consumerism thing. If I don't have the money, I don't buy it. It's been a good ten years since I've been in a shopping mall!

With stocks timing is everything. If you bought before a "re-org" you lose but after you might do well. Timing. That's why it's a good theory but not necessarily sound practice for the average person.

TBS

 

[tcartwri]

Btw, I commend anyone who has the discipline to save enough money for a new or newish vehicle.

 

[Diamondpilot]

Did I miss something here?? I lost over $10,000 in GM stock when they were bailed out. No GM products or stock for me ever again.

You were one of the lucky ones. I lost a 6 figure job!

 

[Egon]

The Stock Market is sorta like a big Poker Game. If your a real good player you may win but at low interest rates on investment. If your an ordinary investor you're supporting a Broker. If you are a very wealthy investor you may be able to influence the return on your investment. If you like high returns on investment chances are very good your investment will keep dwindling in size.

And if your lucky go for it. Wealth beyond imagination may be in your future!

I buy Lottery Tickets.

 

[Industrial Toys]

I have a guy hounding me to invest with him. Metals and currency markets. I don't dare. But I am tempted. Sounds too much like a ponsie scheme. But the guy says, when things are hot in the market, the people that do well are already out.

So, at least I still have my (mostly) reliable old truck. Better a bird in the hand, as they say.