Are a lot of people forgetting the 2011 GT is still a GT?
- Thread starter Lifted07Duramax
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No you're still more than half wrong. Let me point out two mistakes. First, for 30 years, you needed to use the start date of 1981, since the day of the start year is Jan 1 and the date of the end year is Dec 31. 1/1/1981 to 12/31/2010 is 30 years, not the 31 years you must have plugged in.
Second mistake is that you are just comparing the interest rate, not what the theoretical dollar grew to. In your example you are representing that in 31 years a dollar will grew to $28.31 reduced to 30 years, it's only $21.32....but the whopper is that you also excluded inflation, which would drop that growth to just $8.41. And THAT'S where you're MORE THAN HALF WRONG!
oke:Excluding escalation or inflation is like ricer math and excluding drivetrain losses. :loser:
And I see that you edited your post to excluded your condescending remarks:
Shame on you. You can't even get the MATH right yourself. :kaboom:
As stated he left out inflation that causes the purchasing power of the dollar to keep it simple. Inflation sucks and it's grows around 3.x% a year. In fact the average car payment rose again for last year to $492 a month. You have to find the stocks that on average out earn inflation by a larger margin. Gold is not a great investment as it earns historically 4-6% average but it's pretty safe because of the intrinsic value everybody places on it.
Investing is a very good way to make your money work for you as opposed to you working for money. Money never sleeps and is always working so it's actually a better more productive worker if you manage it well. Telling your money what to do rather then wondering where it went. You have to have disposable income to invest in other things. To some investing is dumb and a gamble. I'm pretty sure bill gates and Warren buffet would disagree.
Investing is a very good way to make your money work for you as opposed to you working for money. Money never sleeps and is always working so it's actually a better more productive worker if you manage it well. Telling your money what to do rather then wondering where it went. You have to have disposable income to invest in other things. To some investing is dumb and a gamble. I'm pretty sure bill gates and Warren buffet would disagree.
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yep like all the morons back when the 1st 2g iphone came out everyone and your mother had to have it and waited out in the cold in dec to spend $499 for the phone, now they come out with 3gs and a 4g iphones for $199, and you can buy used 2g and 3g version of iphones for $49 and $99 hell a guy I work with spent $500 for 1st iphone and he just got a whopping $50 on ebay for it used when he sold it after he bought a brand new 1 now for $199 lol and there what only been around for what 3 years they come out with a new version every year
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MustangC is saying that if you are looking at a car as an investment you are in for a rude awakening. A car is an asset but it is of declining value. He is looking at building wealth and his future and kids future is more important. Judging by his sigs he will also buy cars but only after they don't endanger the rest. Investments make money most cars do not. He states that and an arguement that the other investment "only" earns you 9x the money you put in it verses something that losses 70% of it value is ludicris. So don't look at a car as an investment. Buy what you can afford in cash and enjoy it.
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Wow. Lots of wisdom in there.
I don't even know where to begin...So that makes it right to exclude such a major factor "for simplicity"? That's why he's still wrong by more than half.
Anyway, good luck to you both since you'll obviously be the millionaires of the group.
He might agree, but that's not what he's saying. If he just said that, I'd agree with him.
I would buy everything with cash if my job would pay me my next 30 years salary up front.
Investing in stock funds is the most risk free money making strategy known to man, no gamble in it at all. :rollseyes Just ask Bernie Madoff and Kenneth Lay. :lol1:
Yeah, Gates and Buffett want everyone to invest, especially in Microsoft and Berkshire Hathaway.
You can lose your ass pretty quick even in well diversified mutual funds managed by so called "experts" when markets decide to turn ugly on a whim.
This is the most truthful part of any prospectus:
"The performance quoted is past performance and is not a guarantee of future results."
Here is a quote from your mentor Warren Buffett:
"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years."
Good luck with investing to make millions, it works out great for an extremely select few, especially in todays economy/job market. :bored:
If you look at what the dollar is worth today as compared to lets say 2005, this car is actually cheaper than a 2005 GT mustang. Like the above stated, you have the option of snagging a stripped down one without all of the bells and whistles for less than 30K.
My plan is to wait until there are some around with about 20k miles on them and snag one of those. Should be able to get a nice one with an auto for around 18-22k that way. With the prolific numbers of them being produced I do not see them holding value as well as the 03 cobra that I bought new back in 03 and am still driving.
Realistically the 03 did not even depreciate from driving it off the lot. That being said, a year after I bought it I was kicking myself for not being more patient because once you have driven it some it is not new anymore. Could have saved myself about 6 grand if I had not been emotional about the purchase.
My plan is to wait until there are some around with about 20k miles on them and snag one of those. Should be able to get a nice one with an auto for around 18-22k that way. With the prolific numbers of them being produced I do not see them holding value as well as the 03 cobra that I bought new back in 03 and am still driving.
Realistically the 03 did not even depreciate from driving it off the lot. That being said, a year after I bought it I was kicking myself for not being more patient because once you have driven it some it is not new anymore. Could have saved myself about 6 grand if I had not been emotional about the purchase.
So what if I had enough in the bank to pay cash, but i decided to get a loan because i need to build credit because i'm only 22 and that 27,000 would go much better towards a down payment on a house in 3-5 years?
Bingo!
I have worked at a ford dealer for over 10 years. People still think these new cars are gonna be worth $$$$$$$$$$$$$$ like 60's mustangs. I dont know how many retards bought mach 1s, bullitts, shelbys and payed over sticker.. They took them and parked it with the plastic on. Thinking in 20 years its gonna be woth AC cobra money. So many poser's trying to buy cars to look cool also and then act like its worth a $100,000 and runs 10's when they bolt on every trashy BBk chrome part on. Then they complain on a forum where the cupholder is at or why there is rust on the rotors.
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Be careful worshiping at the altar of the great FICO. FICO is an “I love debt” score. You are borrowing money so that in the future you have the ability to borrow money? Think about how silly that sounds.
It is a myth that you have to have a credit score in order to buy a house. If you have a good down payment, a steady income, and a short history of paying rent on time, you can get a mortgage from a reputable bank without having any other debt history. It is easier to accumulate a large down payment if you are not making car payments.
You’re right that the $27k would be better served as a down payment on the house… that is why you shouldn’t buy a new car if you don’t have enough net worth to compensate for having a $30k depreciating asset. Great example!
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If you want something really bad, create a plan and save up for it. That’s what adults do. Baby’s sit in the middle of the aisle and scream “I want it now! I deserve it.” If you budget well and live on less than you make, you can save up the cash sooner than you think. The key to that is avoiding debt. If you are paying all of your money out on bills, it is impossible to build wealth.
http://www.nbc.com/saturday-night-live/video/dont-buy-stuff/27169/
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Just read a good article in 5.0 and fast fords. It's titled "What's it worth to you" The last paragraph says it all!
"So, if anyone ask you what your car is worth to you, the answer should come close to priceless or you aren't playing the game for the right reason. Sure everyone has a price,but in the end your Stang should mean more to you than money, cause it's rarely an investment resulting in financial gain, rather IT'S AN INVESTMENT IN YOUR ENJOYMENT.
"So, if anyone ask you what your car is worth to you, the answer should come close to priceless or you aren't playing the game for the right reason. Sure everyone has a price,but in the end your Stang should mean more to you than money, cause it's rarely an investment resulting in financial gain, rather IT'S AN INVESTMENT IN YOUR ENJOYMENT.
The second sentence in that quote gives a hint to the context of the advice. Warren was advising people not to look to the stock market for short term investment gains. He invests for the long term. The average person shouldn’t expect to break the bank by day trading, but invest for a minimum of 5-10 years and the historical data is on your side. Will you win 100% of the time? No. Extended downturns do occur, but a 95% probablity of a positive return sure beats the 100% probability of losing your lunch on a new car purchase.
:lol:
95% probability of positive returns? ...on stocks...by day traders. :bs:
:lol1:
No you're still more than half wrong. Let me point out two mistakes. First, for 30 years, you needed to use the start date of 1981, since the day of the start year is Jan 1 and the date of the end year is Dec 31. 1/1/1981 to 12/31/2010 is 30 years, not the 31 years you must have plugged in.
Second mistake is that you are just comparing the interest rate, not what the theoretical dollar grew to.
I concede that I made two mistakes:
1) In a haste to provide quick evidence to the poster who requested where he could get a 12% on his money, I overlooked the month presets in the online tool. You are correct; the proper interval for the past 30 years would be 1/1/1981 to 12/31/2010. That generates a compound annual growth rate of 10.74% instead of the 11.39% I had previously quoted.
2) The second mistake I also take responsibility for.
If a man gives a tool to a monkey, and the monkey doesn't understand how to use it, so he hits the man over the head with it rather than understanding it's true function, is it not the man's fault for his own injury?
My expectations were too high. Someone asked where he could get 12% growth for his money, and I simply provided him a suggestion of where an average income earner might do that. While it is true that inflation decreases the purchasing power of future moneys by 3-4% each year, that was not a stipulation of the original question. If it were, then I agree that one would have to do better than the S&P 'average', and instead average 15-16% growth to achieve a 12% increase in purchasing power. That is more difficult, but still not impossible.It is important that people have hope. The little man can get ahead. They can get out of debt and pay cash. They can become wealthy. All they have to do is invest in themselves instead of paying the bank thousands in interest every year or losing it in auto depreciation. Don't discourage them.
It says to avoid day trading. The high probability of returns is based on the overall value of the market over a long term.
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