How long did you finance for?

The world needs financial simps to insure that I can get my cash back bonus. If everyone was paying their cards off in full every month there wouldn't be cash back bonus programs

 

5 years for me. Making double payments each month.

 

I went 72 months. Could easily have bought it in cash, but I am paying $1,500 in interest over those 72 months to the credit union. That $26K in cash that I didn’t drop on the truck right away has earned me a lot more than 1,500 in returns (investment — hell I think even a savings account would yield more than that had I not managed investment accounts). Sometimes having the capital to invest outweighs the ding you will take through small interest loans if you play your cards correctly. Not sure what all the hyper-masculinity is about in this thread... most everyone I know chooses a small loan over paying outright for a depreciating asset. Just because you don’t buy something outright doesn’t make you financially irresponsible or less of a person.

There’s a fine line between managing your money and financing something you flat can’t afford — perhaps that’s what people are ripping on.

 

People finance mods? That’s terrifying to me, and I have no issue with financing vehicles. On the Corvette forum I’m on I see people trying to finance $10,000 C5s which terrifies me. Financing your daily to have something reliable, but I totally believe your toys should be cash only.

I’m all about credit card rewards programs since I haven’t carried a balance in nearly 20 years. When I had my STi I had the Subaru card. My local dealer would let me buy aftermarket mods with the points. It was 3% cash back in $100 increments. Whenever my friends and I went out to dinner I collected all their cash and ran it through my card. I’d put all my apartment bills through the card that I could (cable, cell, etc).

I got my AccessPort for $270, my Cobb downpipe for $10, a free AEM UEGO, etc. After my company changed policies and we had to use our personal cards for travel with reimbursement I switched to a travel card. I ended up getting a free trip to San Diego and the flights to Aruba for my honeymoon for free.

There’s no downside I can see if you only throw things on the card you’d otherwise purchase and pay it in full.

 

I’m the one that is making all of you rich.
I live paycheck to paycheck because YOLO.

 

72 month financing for me.

 

My thoughts of it all, my finances are my business.

 

72 months for me at 2.29%. No way I could drop a ton of cash on it. I used to never go over 60 months but when vehicles are so expensive nowadays, you basically have to finance if your trying to put money aside, have two teenage boys in private school that costs 25% more than my mortgage, on top of that pay at least 10k a year for medical insurance premiums. But that last time I bought myself a new truck was in 06 (which is getting passed to my oldest in 6 months), so unless my 2020 is a lemon, it will be around a while as well. Dang it, just realized my insurance premium will probably double with a 16 years old driver on it...... Yep, no way I can pay cash or drop 50% down.

 

That's part of the game. How much can you make with the money you would save to buy a vehicle vs how much a loan charges you. My retirement is making about 14% personal rate of return. 1.9% vs 14%.... hmm. Still, I hate debt and I'm paying off mine ASAP.

 

0% for 60. It was the perfect time to buy an awesome truck.

 

It's not even a straight comparison. The 14% compounds on itself. The 1.9% is applied to a fixed reducing principal. Even if your investment return rate is equivalent to the loan rate the investment gains substantially outpace the interest payments over time.

 

Can someone with some good financial sense pm a guy at 30 years old with a 6 figure income and give some financial advice?

 

Maximize 401k, done. Bonus, learn to play monopoly in real life.

 

Dont have 401k through job, Roth ira comprable?

 

Not really Roth IRAs have much more restrictions. If I didn’t have a 401k option I would open a Traditional IRA and an investment account with a firm or consultant and target $20k minimum investment each year.

 

My advice is to get into finance. Research and learn about it. There's no one trick that works for everyone or anyone forever. It's a moving target. The play today probably wasn't the play yesterday and it won't be the play tomorrow either. Everyone's playing the game in a unique situation too so the play for one many times isn't the play for others.

You can open retirement accounts without an employer but the contribution limits are much lower than a 401k. Only $6k/year for now.

 

Thats what im able to contribute, was trying t

Thats what im getting at. Even 20k a year under a mattress is only 200k in 10 years. My body cant take another 20 years of turning wrenches so being able to retire at 55 with 1mil is what im after...

 

Sounds like you need a new line of work but a good investment account/firm can earn you around 10-20%. Depends.

 

Your going to have to be real good with your money to get to a Mill if your starting at 30 to retire at 55.

 

If we stay on ZIRP one million might as well be hundred thousand. I was told two years ago that even a million in retirement is not enough anymore, esp if you go into retirement with shot health