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Lmfao, “modern stuff.”

I’m not sure why you see buying a 25k truck and putting 10k into it (which I haven’t by the way, was just an example) as ridiculous, but somehow see buying a 50k, Insanely marked up truck as magically a wise financial decision. Please don’t act like you got a “killer” deal on it. I was a sales manager for a Toyota dealer for 6 years, the mark up is insane and there’s little wiggle room because dudes like you who don’t know any better are willing to pay out the ass for a very ordinary truck to appear a certain way or “because you can” as you so eloquently put it.

Ps - I make smart financial decisions too, that’s why I wouldn’t drop FIFTY FUCKING GRAND cash on a depreciating asset unless I won the lottery tomorrow night...


To each their own!

 

To hell with that, this thread is going nowhere fast!

 

I always factor a house, car, and student loan into my budget and go from there. I am not telling Ya it is the way to do your financial planning. I retired at 50 and I will be 55 this year. I go places and do things that I want to. Soon as I get a house or auto almost paid off I start itching for another one. I did get 3 percent on the loan for this Taco. I think the house is a little high but we like the tax break. Anyways, I would hate to pass away with beer left in the fridge... oh yeah, check out my grill. I added the letters yesterday.

 

Don’t need to justify it to Tacomaworld. Just do your thing. Enjoy it.

I have a pro with old man emu suspension and a ton of other things that make me question why I bought a pro.
At the time I honestly thought I wasn’t going to do any mods to it. After a fridge in the back and fully loading the roof rack and bed a few times I realized that the pro suspension was lacking for my needs.

If I did it again, I would have gotten an off-road, and It’d be paid off by now. But having a sick-ass pro is awesome too. And once I popped my cherry on seriously modding it I had new opportunities pop up. like, how cool would a Tacoma Trd Pro OV turbo trophy truck be?

 

Scenario 1: You save up $40k beyond your emergency fund and pay cash for a new Taco. Over the next 5 years you max out your Roth IRA by contributing $500/month. Say your IRA averages 12% growth. After 5 years, your truck will be worth about $24k and you will have $42,700 in a Roth IRA that will continue to grow tax free. If you're 30 years old today and max out your Roth IRA using this method and rate of return, you would have $2.9M at the age of 65.

Scenario 2: You save up $40k and decide you want to buy a Tacoma. You put $10k down and finance the remaining $30k at 2.9%. Your Tacoma payment will be $538/month for 60 months, so now the average person won't have the funds to max out their Roth IRA. With the 2.9% loan, you've also paid $2,800 in interest. But great news, you still have $30k leftover to invest. You drop $30k on stocks/mutual funds/whatever that makes an average of 12% over the next 5 years, so you turned your $30k into $53k, but depending on your tax bracket you will be taxed approximately 35% on the $23k in earnings, so your investment is worth about $45k. After your truck is finally paid off, you then start investing $500/month into a Roth IRA at age 35. By age 65, the Roth IRA will be worth $1.6M (tax free).

For a 30yo who invested $30k, this nest egg would be worth about $1.6M at age 65. But you will be taxed on all of that growth, making the cash value worth about $1M. Adding to the $1.6M in this scenario's Roth IRA, their nest egg is worth about $2.6M.

Scenario 2 allows you to earn about $2k more over 5 years (age 30-35 in the above example).

Scenario 1 gives you $300k more at age 65.



*Obviously, there are many other scenarios and investment options, and these are rough estimates.

 

I paid 35,700 for a 42,550 truck. I'd call that a killer deal. But we're clearly different so I'm out. I do have the same color as you.

 

We both know you didn’t walk off the lot at 35,700. Unless you want to post pictures of paperwork with the personal info blacked out proving your claim. But you won’t because you can’t so it’s all good.

We are certainly different! Lmfao.

And please don’t reply if “you’re out.” If you wanna bitch out of the debate fine, but don’t come crawling back to get the last word in lol.

 

perhaps one of those scenarios is taking that 30k in scenario 2, investing 24k, keeping 6k to max out that Roth the first year while the 24k earns interest, you can pull 6k out the next year to max out Roth again, maxing out beginning of each year gives your money more time to earn interest than doing 500/month in scenario 1. You can max out Roth for the first 5 years and the rest earns interest while you wait to max out the Roth each year. Thus your Roth balance could actually be higher at 35 from the extra time the full 6k each year is earning, and you’d have modest earnings from other investments, and you have the same vehicle paid off at the end of both scenarios.

 

This. Kids and wife are expensive. Neither make enough money to cover their expenses. I’d be a rich as man without them.

 

I could pay off my 45k truck but i make payments. Then put 40k in Apple stock. A year later, they gained almost $100/share.
Moral story is, losing $3k on interest but make $20k on investment somewhere else is a much better choice

 

Even with a 15% return, you're only going to be making about $3,600 on $24k. That doesn't even cover the $6k you're pulling out to reinvest into an IRA. And you'll be paying capital gains on that $3,600.

 

Decent credit?

 

There's always exceptions. I've never had amazing luck with single stocks, other than Costco stock.

I don't think most people who choose to take out a car loan choose to do so because they're choosing to put that money into an investment. By far, most people who take out a car loan do so because they don't have the money and cannot afford the car they are purchasing. These folks aren't investing in anything.

 

The point is, you can max out the ira for 5 years in either scenario, in my scenario, you have 24k sitting there after you max out the ira. I don’t give a shit if it’s sitting in a savings account earning 1%, that’s more than it’s doing in scenarios 1 where he ignores the fact the ira can be maxed out either way. Come on people

 

An HP12C for the win!

 

No. He’s saying even if you would have taken a loan out at 5% (which is high, I got a 1.9% auto loan), you still would have come out about $10k better by investing in the stock market (which averages about 8%). And that’s not counting that the money would have been growing interest during the time it took you to save it up. Don’t give all your cash away if someone is willing to front you the money for cheap.

 

I’m just smart and make good income. The End. Lol

 

Something hard to read, but easy to follow might do the trick here.

 

You're an idiot. Let me go find the sticker and their offer. Nobody needs to crawl back to your dumbass and I have no reason to lie. In modern times you get your info on a thumb drive. But hold on and I'll make an ass out of you.

 

Had someone just taken my $20 offer and shut this thread down look at all that could have been avoided.