Community Forums

Tha_Rooster · 07-17-2012, 12:28 PM

There has been numerous post on ( I only pay cash).I'm just curious how many 400k and up and they did not sell their home. That doesn't count unless you did not have to finance it. I see absolutely nothing wrong using someone else's money. I think if you took a pole of millionaires you would find they us someone else's money (the bank ) and save their cash. So I guess I'm venting not everyone's finances are the same, not everyone's needs are the same. We all got to our life style on our on making decisions that we thought was best some have more and some have less happy rving.

RickO · 07-17-2012, 01:22 PM

I'm with you on this one Rooster.

My new DP didn't cost $400K but even though I could have paid cash I chose to take out a 90% loan and hang on to my cash. It didn't make sense to me to put cash into an expensive, depreciating asset.

Yes, it's under water but that doesn't come as a surprise to me. I knew that would be the case as soon as I drove it off the lot. That fact doesn't hinder how much I enjoy the rig one bit.

Rick

Jack1234 · 07-17-2012, 05:41 PM

Hey guys I understand your logic if....

1) You do NOT have the cash, but you have great "cash flow" which easily covers the house mortgage, health care, the kid's college fund, your retirement planning, etc. etc.....hey as long as the priorities are covered (?).....why not?

2) You HAVE the cash and you feel that in today's investment climate you can "comfortably" invest your cash and cover the interest and the taxes (?).....why not?

My only question is.....what happens if you loose that "cash flow" or your "investment strategy" goes south?

Not trying to be a jerk or start an argument...just curious....am I missing something?

Perry White · 07-17-2012, 05:56 PM

Pay with cash that you have sitting in a .05% savings account or borrow it at 6.5%. Boy. I'd have to give that some thought.

HHIDan · 07-17-2012, 06:00 PM

Quote:

Originally Posted by Perry White

Pay with cash that you have sitting in a .05% savings account or borrow it at 6.5%. Boy. I'd have to give that some thought.

X2

Muddypaws · 07-17-2012, 06:13 PM

Don't forget that the sales tax and interest etc are deductions on your income tax.

I get 4 to 7% on my savings. I wouldn't put 100K in a BANK!

chuckinthebus · 07-17-2012, 06:14 PM

Quote:

Originally Posted by DBeauchamp

X2

X3

RickO · 07-17-2012, 06:17 PM

Quote:

Originally Posted by Jack1234

Hey guys I understand your logic if....

1) You do NOT have the cash, but you have great "cash flow" which easily covers the house mortgage, health care, the kid's college fund, your retirement planning, etc. etc.....hey as long as the priorities are covered (?).....why not?

2) You HAVE the cash and you feel that in today's investment climate you can "comfortably" invest your cash and cover the interest and the taxes (?).....why not?

My only question is.....what happens if you loose that "cash flow" or your "investment strategy" goes south?

Not trying to be a jerk or start an argument...just curious....am I missing something?

I hear you Jack and those are the questions one has to ask.

In my situation, I was newly retired and could go either way... cash or finance. I bought my new coach in April 2007. Everything was rosy in the financial markets... and while many here on the forum proudly proclaim that they saw the crash coming and cashed out of the market... I was not so insightful... so I financed. At the time my cash was doing a great job of providing a much better return than the 6% loan I took out.

Hindsight provides clarity and if I knew then what I know now... well, I wouldn't have purchased a new quarter million dollar RV in the first place.

But, IMO it's all about risk tolerance. To answer your question, my investment strategy went south... along with the strategies of a few other folks over the past 5 years. But, I did not put myself in a position where that would make or break my bank. It didn't turn out to be the smartest move financially but it hasn't changed my life one bit. I can still afford to do all the things I did when I first bought it.

What kind of makes the hair on the back of my neck stand up from time to time is when someone will post about how they NEVER finance anything and they save up until they can pay cash... followed by statements or implications that anyone who does otherwise is... well, fill in the blank: foolish, irresponsible, ignorant, etc.

I believe they start from a false premise that we are all in the same financial situation and hold the same values. We are not.

Just how I see my world.

Rick

G.G. · 07-17-2012, 06:19 PM

We pay cash for everything. I do not want to be in debt. Life has a different feeling for me when I owe no one. We are fans of Dave Ramsey who says, "The borrower is slave to the lender." I know there are those of you out there who manage your debt fine and probably won't get into financial trouble, but I just breathe easier knowing what I have I own. What we have may not be the best or most expensive, but it's ours.

Dogpatch · 07-17-2012, 06:19 PM

Savings??? LOL

danf7 · 07-17-2012, 06:24 PM

Quote:

Originally Posted by Perry White

Pay with cash that you have sitting in a .05% savings account or borrow it at 6.5%. Boy. I'd have to give that some thought.

5% would be great... more like 1-2 % or pay 6.5 % interest. yep doesn't make sense to me either.

Dan

RickO · 07-17-2012, 06:29 PM

Quote:

Originally Posted by Dance Chick

We pay cash for everything. I do not want to be in debt. Life has a different feeling for me when I owe no one. We are fans of Dave Ramsey who says, "The borrower is slave to the lender." I know there are those of you out there who manage your debt fine and probably won't get into financial trouble, but I just breathe easier knowing what I have I own. What we have may not be the best or most expensive, but it's ours.

And THAT's what it's all about. Whatever makes each of us most comfortable in managing our lives.

Happy travels.

Rick

Jack1234 · 07-17-2012, 06:44 PM

Quote:

Originally Posted by Perry White

these POLLS on this site is a joke. People just being nosy.

Forget it it ain't worth the aggravation.

Perry.... Why would you say that? This is a general conversation forum where thoughts and ideas can be exchanged. If you don't like the conversation that's OK, but why be critical of people having a bit of relaxation and fun discussing things?

grafxman · 07-17-2012, 06:46 PM

The last time I financed anything was when I bought a new 1982 Mercury Lynx. The financing bit was a mistake. I had so many problems with the bank while overseas on deployment that I just came to the decision that I would never finance anything again. I'm not wealthy. Far from it. I'll just do without, save my money and pay cash. I've never even paid any interest on any credit cards until recently after I bought the motor home. I've discovered owning a motor home is a lot like owning a boat. I just keep pouring money into it.