Buy with Cash, Lease, Loan or Paid off?

[Isaac-1]

I was just looking at my stock situation a few hours ago, and it is actually up about 12% over end of the year last year.

[rcnuts]

My intention is NOT to hijack this thread but I can't resist. I love reading about stock market opinions and investing, along with all the nuances. Oh yeah we were involved quite heavily in the past. Were out 100% now. Own several properties that we rent out. All of them, including our home we own 100%. As others have stated on this thread, there is no 1 correct answer on financing, paying with cash, or any combination of the 2. Even if a person ends up paying more over a period of time as long as they can afford it whats the big deal? There is way too much over analyzing going on here!!
Harris

[RightUR]

Originally Posted by Isaac-1

I was just looking at my stock situation a few hours ago, and it is actually up about 12% over end of the year last year.

wow, that's pretty good. Are you investing in Aggressive funds? do you use T.Row price, Franklin templeton, Lord Abbett, American funds?

[Maik]

Our coach was 18 years old when we bought it. Dealership fid not offer a loan because of its agr. We paid cash; which was cheaper than buying a new pick up truck! Its is our early retirement travel mode so we did not want payments.

[Gdlow]

Originally Posted by dav l

i haven't lost. Because i haven't sold anything while in the current trough.
Ya gotta be lucky twice...when you buy, and when you sell.

the name of the game is buying and selling

[Gdlow]

Originally Posted by RightUR

Interesting. So who here can say that with the down turn of the market this yr, they haven't lost ANYTHING? I'm not a Financial adviser, but like many I entrust my $$ to Meryl Lynch, Charles Schwab, Edward Jones, Fidelity and so on. These companies ALL invest in funds like American funds, Lord Abbott and so on. All funds have taken a negative hit this yr, the market has lost everything it gained from the 1st and 2nd quarter, might as well count this yr as a loss. And y'all are gonna sit here and tell me that none of y'all have lost money this yr? Unless you do all of your own trading, buying and selling YOU LOST MONEY this yr. So yeah by not putting down a lump sum of cash for that MH you probably gained, but on the other side of the spectrum the money you invested (from which you would have taken that lump sum to buy the MH) You LOST. I would say in the end it all balances out, but if your funds and 401k took a hit like mine, well you would have been better off paying that rig off.
Also if you finance a 100K rig (I guarantee you the way y'all are talking, you're not talking about 100K rigs, but I'm humoring you) for 15 yrs at 3%(believe me you won't find 3% to finance a MH, but again I'm humoring you), you will have paid over 50K for that loan in addition to the 100k. And God forbid you total your Rig, now you get the depreciated value from the ins. co. and still have to pay that loan. Nah, thanks, but if I have the $$ to pay it off now, that's what i'm doing.

This is the reason I believe what is right for one person may not be for the next...I am a firm believer in the power of compounding interest, so even tho I may lose this year in terms of total market return over a period of time I will be likely better off due to compounding vs. simple interest in a payment plus the cost of a bigger hit on taxes from moving to a higher tax bracket...

[stepside454]

Originally Posted by Gdlow

This is the reason I believe what is right for one person may not be for the next...I am a firm believer in the power of compounding interest, so even tho I may lose this year in terms of total market return over a period of time I will be likely better off due to compounding vs. simple interest in a payment plus the cost of a bigger hit on taxes from moving to a higher tax bracket...

It’s kind of like the MH vs Fer argument, some folks have it in they’re heads that what works well for them is going to be best for you too , & no matter what you tell them ... your wrong , & that’s it

[Gdlow]

Originally Posted by stepside454

It’s kind of like the MH vs Fer argument, some folks have it in they’re heads that what works well for them is going to be best for you too , & no matter what you tell them ... your wrong , & that’s it

spot on

[ArgoPilot]

NO!! You're WRONG! Meat Lover's Supreme Deep Dish IS the BEST!



Oh, sorry...what were we talking about?

Paid cash for a 24 year old Navigator diesel pusher, gained back to where my portfolio was before disbursing for the purchase, now down about 11% or so. Hoping this is a correction from the false economic gains of the last regime, so we'll be on firmer footing as far as any future gains.

But not depending on the portfolio, so no panic selling or buying. Good investment targets in industrials, ACTUAL energy and financial. None of those are going away.

[RightUR]

Agreed, Gdlow......Like I said in my previous post: the only way you made money and didn't lose any is if you do your own trading - buying and selling. But if you invested money with Co's like Fidelity, Schwab, lynch, Ed Jones and so on, and let them manage your account, you LOST money.
I agree that in the Long hall there is money to be made, and recouped. But like I said when I 1st came on to this web site, I was hit hard in 2007 and just recovered in 2016 (meaning I made most of my money back). Well I don't live in 9 yr cycles, nor can I tell people that I'll pay them back when the market goes on a positive upswing. The market is to "rocky" and unstable right now, no steadiness. Actually I talked to my Fin. Adviser today and made some drastic changes and asked many questions. She said we haven't weathered the storm yet, there are more stormy waters ahead. BUT if I stick with the "program" I'll have 14% gains in the future. FUTURE being the key word. Like I said I don't have 5-10 yrs. I don't live in 5-10 yrs cycles. Now granted I don't have the copious amounts of money invested like Many of you do, but I'll be honest with you I lost 50K this yr, and No I don't have 2,3,4 more yrs til I make that back and break even again. Maybe at 60ish and 70ish some of you have that kind of time, but the war left me a brok-up man and my dad died at 64, so I don't see my self making it much farther then 64. So waiting 2 yrs each time to recoup losses is not an option. Well, it's friday, I'm going to the Copa Cabana to meet Lola. Y'all take care.

[AbdRahim]

This is fascinating and often entertaining reading. I did cash to avoid interest and stay debt free. However, I often wonder if I would do that again. Hopefully, I will trade at around age 70-72. At that point, I am thinking of financing a large portion, in order to keep what I have left growing at a maximum rate. However, it is a balancing act, and the rate of payment might likely change based on the profitability of investments. It is a difficult issue since substantial medical costs, may arise suddenly, the older we get. I guess the best approach is to sit with pen and paper and list the pros and cons of each option, discuss it with an account and trusted financial advisor, then take your best shot and live with it. The big caveat is, I would likely never finance anything that I did not at least have the funds to pay for outright, regardless of whether or not it was wise to do so. That is my 2 cents

[AbdRahim]

Originally Posted by tcg

That's a lot of assuming about the younger generation. Your kids are responsible but no other youngsters are?



That's also interesting.



My kid is thirty something, they have no credit card debt and own their own vehicles, I give them nothing.



So that's two of us with responsible kids, you think maybe there are more?

Funny the borrowing generations mentioned. When I was young, I was initially puzzled by the number of young people (late 20's -early 30's) living in $300,000-400,000 homes, driving new BMW's and using cell phones, and taking nice vacations. The housing bust finally made it clear. People ask not how much does it cost, but what are the monthly payments. Hmmmmm!

I even met a nice couple while camping once. They pulled in wit a nice big tag axle diesel pusher. They made the comment that when they bought it they figured they could make the monthly payments. They did not figure on the insurance, yearly maintenance, $5000 for new tires, etc. I thank God for my old school mentors, who said most people buy what they can't afford, with money they do not have, to impress people that do not care and that they don't like anyhow.

[Electrojake]

Originally Posted by AbdRahim

Funny the borrowing generations mentioned. When I was young, I was initially puzzled by the number of young people (late 20's -early 30's) living in $300,000-400,000 homes, driving new BMW's and using cell phones, and taking nice vacations. The housing bust finally made it clear. People ask not how much does it cost, but what are the monthly payments. Hmmmmm!

I even met a nice couple while camping once. They pulled in wit a nice big tag axle diesel pusher. They made the comment that when they bought it they figured they could make the monthly payments. They did not figure on the insurance, yearly maintenance, $5000 for new tires, etc. I thank God for my old school mentors, who said most people buy what they can't afford, with money they do not have, to impress people that do not care and that they don't like anyhow.

Finally, a good honest post from the house of common sense.

[Barbaraok]

Originally Posted by RightUR

I was hit hard in 2007 and just recovered in 2016 (meaning I made most of my money back).

Ugh. That would certainly have been a downer for us. It only took 18 months for us to be back above where we were when market tanked.