Liquid Assets and Expensive Car Purchase
- Thread starter Dr. Gonzo
- Start date
The only think lower than bankers is grammar nazis
You must have been a mouse in a past life.
Close, I was a Tapir in my past life.
Not one person said it. So I will....
Take the $250k and go spend it on hookers and blow.
Just kidding. You want to work your whole life? Then do the above suggestion of mine. Want to retire at 45? Pay off house/invest.
Take the $250k and go spend it on hookers and blow.
Just kidding. You want to work your whole life? Then do the above suggestion of mine. Want to retire at 45? Pay off house/invest.
Pay off the mortgage. Would you borrow money against a house to invest or buy a car? If you decide you hate not having any debt in the world you can always take another mortgage.
This is the insidious problem with debt, and part of why the interest arbitrage on car notes vs investment alpha doesn’t tell nearly the whole story.
You already spent the money for your house, you just haven’t admitted it yet.
Grandma managed to be conservative in her finances and leave you an amazing legacy. Have you considered what she’d have wanted you to do? My grandma would haunt me if I didn’t pay off my house.
My vote goes towards clean c6 z06... best bang for 35k... Pay off debts and invest wisely.
I would do nothing with it. Let it sit for 6 months. Or 12 months. Or however long it takes you to decide what the right thing is to do with it, whether that be paying off your house, buying a car, or spending it all on hookers and blow. The worst thing you can do is something you’ll regret.
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take the $250k in cash to NYC. buy a few "packages". return to your area. sell. double your profits in less than a month.
rinse
repeat.
by next year you'll be posting pics of your new pagani.
oh and keep your day job so it doesnt look suspicious.
rinse
repeat.
by next year you'll be posting pics of your new pagani.
oh and keep your day job so it doesnt look suspicious.
Sounds like you're going to buy a car. Set a limit on how much you can stomach to lose of that money and pay for the car. The reality of paying for it in full should help restrain you from going overboard.
Take the rest and invest/forget/whatever. It will be there down the road for when you decide to pay off your mortgage in a few years or keep chugging along like you are now, but with 200k in the bank and a toy.
But whatever you do please follow the advice that has been passed down from generation to generation.....masturbate before making any major decisions!
Take the rest and invest/forget/whatever. It will be there down the road for when you decide to pay off your mortgage in a few years or keep chugging along like you are now, but with 200k in the bank and a toy.
But whatever you do please follow the advice that has been passed down from generation to generation.....masturbate before making any major decisions!
As a rule of thumb Dave Ramsey suggests to never have more than 1/2 your annual income tied up in things that go down in value (cars).
I would pay off your mortgage, its very liberating to say the least.
I have a paid for house, own all my cars and zero debt. Its amazing! Since everything is paid for I could take a serious pay cut at work and not have it effect me. LOL I could almost get by as a burger flipper since there are no payments to be made.
I try to follow Dave Ramsey's plan of 15% of my income invested in my 401K, and I have more than my 3-6 months living expenses in the bank. I'm actually having my first child in a little over a month and it really takes the stress off knowing everything is ok financially.
Pay your mortgage off, if you can bank $1500 a month from not having a house payment you'll be able to make some amazing things happen. You'll easily be a multi-millionaire.
I would pay off your mortgage, its very liberating to say the least.
I have a paid for house, own all my cars and zero debt. Its amazing! Since everything is paid for I could take a serious pay cut at work and not have it effect me. LOL I could almost get by as a burger flipper since there are no payments to be made.
I try to follow Dave Ramsey's plan of 15% of my income invested in my 401K, and I have more than my 3-6 months living expenses in the bank. I'm actually having my first child in a little over a month and it really takes the stress off knowing everything is ok financially.
Pay your mortgage off, if you can bank $1500 a month from not having a house payment you'll be able to make some amazing things happen. You'll easily be a multi-millionaire.
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+1 re: paying off your mortgage. Remember that care-free feeling you had in middle school, it brings a little of that feeling back, sounds hokey, but it's a seriously nice feeling.
You'll also probably save a bunch on interest, use one of the online interest calculators to see how much you'll save:
https://www.daveramsey.com/blog/mortgage-calculator#/entry_form
You'll also probably save a bunch on interest, use one of the online interest calculators to see how much you'll save:
https://www.daveramsey.com/blog/mortgage-calculator#/entry_form
In 03 and 04 I was hearing about how one makes money from multi millionaires who were driving New Lamborghini Murcielagos.
10-20% down on real estate make payments sell at profit. They've done it for years. Then in 04 I heard Dave Ramsey. He was saying pay with cash and stated his reasons.
08 hit and by 10 those millionaires were bankrupt and those who were following Dave Ramsey had no worries. I'm a believer now.
I really feel like we're on the same page...just explaining it differently.
I don't have any debt besides my mortgage. I use a credit card on nearly every purchase and pay it off at the end of each month. No, I'm not the norm, but this way I get the best of both worlds.
I know plenty of people who stretched their spending abilities in the early 2000s that were fine through the downturn as well.
It was not just spending capabilities it is using debt to make money. It's just dangerous.
4 to 5 million in cash gone because one is over extended. Debt is an issue that can get out of control in a heartbeat.
4 to 5 million in cash gone because one is over extended. Debt is an issue that can get out of control in a heartbeat.
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I found out my inheritance is a little less than expected ($215k not $250k) and it will not over my mortgage payoff. I don't think it would be very wise to drain my existing savings account to cover the difference, but I'm open to discussion.
As amazing as it would feel to not have a mortgage anymore, and live 100% debt free, I think realistically, I'll throw a large sum ($100k) at the principle, which will greatly increase my equality and refinance to drop my monthly payment, put another $100k in investments and use the remainder on a toy.
I always appreciate everyone's advise. One of the many things I love about SVTP is the wealth knowledge in virtually every facet of life from its members.
As amazing as it would feel to not have a mortgage anymore, and live 100% debt free, I think realistically, I'll throw a large sum ($100k) at the principle, which will greatly increase my equality and refinance to drop my monthly payment, put another $100k in investments and use the remainder on a toy.
I always appreciate everyone's advise. One of the many things I love about SVTP is the wealth knowledge in virtually every facet of life from its members.
How about pay off that mortgage
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