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Old 07-17-2012, 10:20 PM   #29
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My credit union offered me 2% financing on my coach. I could have paid cash, but I come out ahead of the game financing at 2% if I leave my money where it is making 5%.

I can imagine situations where people might want tax deductions that makes it worth it to them to pay the interest rather than pay cash.

Everyone's situation is different, it's all a mathematical exercise. Do the math, play your cards the way you think is best for you.
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Old 07-18-2012, 02:23 AM   #30
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I pay for things where it makes sense to do so and not where it doesn't. Like Ramblin, I would not take my money out of an investment making 5% when I can finance for 2%. Simply put, wherever my money works better, that is where it goes.
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Old 07-18-2012, 05:28 AM   #31
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Originally Posted by dogpatch View Post
Many people on this site probably wouldn't be able to enjoy this lifestyle without credit or debt.

To each their own.

Some people live for today, cause they feel there may not be a tomorrow.
Some people do nothing today in anticipation of tomorrow.


If you can pay $400,000 cash for an RV. Good for you.

If you can't, welcome to the rest of us.
Well said dogpatch. I try to live in that middle ground of balance. Save a little for that rainy day fund, but don't go hog wild like there is no tomorrow. We are on this earth a short time.
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Old 07-18-2012, 07:14 AM   #32
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A tax write off is not a dollar for dollar tax savings. You're only saving whatever your tax % is. Why give the bank $5,000.00 a yr. in interest to save 25% (or whatever your rate is)? I know it's different strokes for different folks, but the tax write off has long been a justification for some people to borrow...sometimes more than they should.
$5000.00 in interest? Are you nuts? I paid just under $900.00 interest from August 2011 - December 2011.
( I acquired the RV in August of 2011)

And it is a simple interest loan and I pay extra towards the principle each month.

Meanwhile I am averaging a 10-12% return
(April - June 2012) on my TRUE investments!

An RV is a TOY not an investment!!!

(it is for me anyway)
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Old 07-18-2012, 07:28 AM   #33
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The ones that get 2% when financing (suspect it's a floatting rate) and get a 6-12% return on investments probably do 13-14 mpg... Just kidding.
I did make 12% on my investments for a couple of months, I think it was in 1998.
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Old 07-18-2012, 08:06 AM   #34
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Well said dogpatch. I try to live in that middle ground of balance. Save a little for that rainy day fund, but don't go hog wild like there is no tomorrow. We are on this earth a short time.
I am definitely in this camp. My mother passed away at 46 years old. my first wife passed away at 39 years old leaving behind kids that were 8, 10 and 12. I am 45 now and do not expect to have a long life due to a congenital heart defect. My late wife and mom never did things they wanted to do because the were saving money for later, only pay cash, etc. Later never came. I have a short amount of time to create memories with my kids and instill values that are important to me. If I am broke when I die but my kids are productive, responsible adults and we've enjoyed life together, I will consider myself a wealthy man. I am not judging the choices of others, just sharing how things look through my glasses.
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Old 07-18-2012, 08:24 AM   #35
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[QUOTE=DBeauchamp;1247224]The ones that get 2% when financing (suspect it's a floatting rate) and get a 6-12% return on investments probably do 13-14 mpg... Just kidding.
I did make 12% on my investments for a couple of months, I think it was in 1998.[/QUOTE]

FYI : You can still get that rate of return today! I have money in a mutual fund, (Fidelity Contrafund) and have a return of 10.94% YTD.
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Old 07-18-2012, 08:54 AM   #36
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Interest on a 200 grand loan at say 4% is what? close to 8 grand a year? Do the math. So that would be if you put $380 grand down on a new Essex and financed the rest. (they want $580 for a new one. List of $730)

I'm sure people could do it, but does it make sense?

You all started this with a $400 grand price tag rig.
That's why I won't buy new. The depreciation will always outrun the loan. But you can usually get a great deal from the banks that take them back.
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Old 07-18-2012, 09:03 AM   #37
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My son bought a new 40 grand Ford Explorer for 36 grand no money down and zero interest for 6 years.. Year and a half latter, owes twice what its worth.
Stupid. But it is still stupid to pay cash for one like I did. Except you know your throwing your money away.
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Old 07-18-2012, 10:06 AM   #38
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[QUOTE=Benny367;1247265]
Quote:
Originally Posted by DBeauchamp View Post
The ones that get 2% when financing (suspect it's a floatting rate) and get a 6-12% return on investments probably do 13-14 mpg... Just kidding.
I did make 12% on my investments for a couple of months, I think it was in 1998.[/QUOTE]

FYI : You can still get that rate of return today! I have money in a mutual fund, (Fidelity Contrafund) and have a return of 10.94% YTD.
Just for fun still, (for the sake of arguing...): Do you have your whole portfolio invested in this fund?? What is your average ROI really?? Most people buy RV's "later" in life when your investments would/should be in the lower risk category, which would yield lower returns.
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Old 07-18-2012, 10:24 AM   #39
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I'd just like to know where some folks are getting 5-7% return on cash with little/no risk on the principal? Man, I'd retire today!!! (I'm getting 5% on my original investment in a commercial REIT, but let's not talk about the declining share value!! )

And, yep, I'm a cash only guy. My financial advisor and I don't even agree on this, but so be it. In my case, part of it is because my parents lived during the depression and pounded the "cash only" philosophy into us when their parents and relatives lost farms and businesses to the banks. Another part of it is a Biblical principle to "Owe no man anything...." (Romans 13:8). Another part of it is, if some great, life-changing event were to happen to me, my wife (if I'm not around) wouldn't have to figure out how to cover the debt I'd leave behind - what we have belongs to us, free and clear, and our living expenses are minimal relative to the financial resources I'd leave her to meet them.

To each his/her own - I just sleep better this way.

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Old 07-18-2012, 10:27 AM   #40
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It's like a house, in my opinion... worst investment one can make because it's highly illiquid.

Steve
Where are you buying houses... louisiana swamp land?
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Old 07-18-2012, 10:58 AM   #41
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[QUOTE=DBeauchamp;1247356]
Quote:
Originally Posted by Benny367 View Post
Just for fun still, (for the sake of arguing...): Do you have your whole portfolio invested in this fund??
What is your average ROI really?? Most people buy RV's "later" in life when your investments would/should be in the lower risk category, which would yield lower returns.
No, of course not, I have it a diverse portfolio which consists of Large Cap, Small cap, Bond index funds, REIT's, stock funds, S+P 500 Index funds etc. etc.

I am 48 years old so retirement is still a little ways off and so I invest in moderately aggressive funds at this time. I am always moving money around to get the "best bang for my buck"
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Old 07-18-2012, 01:21 PM   #42
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Heck Fire!!!! I think I'll just keep my money stuffed in my mattress...That way I know that I'll just "sleep better." Darn thing is going to be kind of "lumpy!!"
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