Multi-topic thread on retirement and second car

[Z51L9889]

more like ... if i work just one more year i can afford the markup on the new zr1!

There are exceptions to every rule, lol!

 

[FLYARMY]

I have enough money in my investments to pay off my mortgage and my 2 car payments and still have 75% left. I would love to have no more large notes to cover each month. BUT......my finance guy says that since my bills have such low interest rates (all under 4%), that I should not use my investment money to pay them off, because then my tax on the withdrawals would be a minimum of 20% and it would kill my 20-27% returns I have been making for the last 2 years. It makes complete financial sense....but I still would love to get rid of those heavy monthly hits. If the economy tanks I will then probably regret not paying them off.

 

[rubberduck]

What we’ve seen with the stock market in the last 18 months is not the norm. Many financial analysts and bank CEOs believe things will go back to around 3 to 4% growth rate. Anyway, until that happens I won’t be making any major changes.

People and companies borrow money, there’s nothing inherently wrong with it if done wisely and part of an overall strategy. Paying off loans only makes sense if a person’s retirement income won’t support the payments. I owe around $20K on my 5BW at 3%. I could easily pay it off, but it doesn’t make financial sense.

 

[Roadhawk]

People and companies borrow money, there’s nothing inherently wrong with it if done wisely and part of an overall strategy. Paying off loans only makes sense if a person’s retirement income won’t support the payments. I owe around $20K on my 5BW at 3%. I could easily pay it off, but it doesn’t make financial sense.

Understood....regardless I've always been adverse to debt and we're entirely debt free now for almost 10 years after paying off the house. Paid cash for the BW last year because we could and just didn't want to deal with financing and banks. We borrowed for prior cars but always with money down and the shortest payment period. And we didn't borrow for our boys college but did pre-paid plans.

I also paid for my own education....working as a dishwasher in restaurants (really)...though I actually started taking college courses when I was 14 (summer and nights) and graduated at 18 after dropping out of high school. It was a bit dicey to be accepted into college without a high school diploma but when I spread the cash out on a table for the first semester they said you are serious and accepted me. I moved out of my folks house at a pretty early age and paid my own rent....all on a dishwasher salary...luckily the Greek restaurant where I worked fed me pretty good. I paid cash for my first car - a 1991 Toyota Starlet (great little car)...but I used $ from my co-op government job for that. I was working full time in DC for the feds, working Friday, Saturday and double shift Sunday at the restaurant and taking college courses at night....the time went by in a flash...

All in all I think its worked out well for us...particularly when I see others who have struggled due to debt. I don't much care if I'm losing a bit on the margins...its less worry, less stress and perhaps I'll live longer because of it.

 

[rubberduck]

All in all I think it’s worked out well for us...particularly when I see others who have struggled due to debt. I don't much care if I'm losing a bit on the margins...it’s less worry, less stress and perhaps I'll live longer because of it.

People get into dept for a variety of reasons. If we set aside people that have legitimate financial circumstances, like illnesses or debilitating injuries, it’s mainly emotional spending. Meaning they let their emotions have an oversized role in their financial decisions.

If borrowing money makes you uncomfortable, then either don’t do it or find out why and change it if you want. As one that had financial difficulties early in life I was forced to do a deep investigation of my life and decisions. Once I did that and changed my thinking and behavior the worry was over.

Having a loan isn’t a big deal for me, I just set up automatic payments. I do the calculations and understand what the maximum monthly payment I’m willing to undertake based on my budget allocation. If something traumatic were to happen I would sell the asset. I’m never underwater on any loan.

 

[Roadhawk]

I didn't even have a credit card until I was maybe 25 or 26 and I was basically forced to have one. Hard to imagine being without one now. Of course I almost always pay the full balance every month...lol

 

[MookdocOE]

I am not going to sit here and talk about Agent Orangeman or this side and that side etc. Govt problem #1 is spending and problem #1 has to be addressed ASAP. Dem da facts!

 

[DCV]

Now who said “deficits don’t matter”….The whole supply side economic theory does not work and it never will. Trump will give more and more tax cuts to corporations and to the 1 percent, on the assumption that said people will create more jobs…and it’ll run up the deficit….just like before…when in fact as been proven over and over, it simply leads to stock buybacks and big bonuses to Board members. Reagan tried it, as did Bush 1, Bush 2 and Trump. Bush 2 was handed a surplus by Clinton, and in three years pissed it away. Reagan actually raised taxes as did Bush 1. Add in tariffs and it’s 1929 again…just need a revised Smoot Hawley Act to happen.

 

[rubberduck]

All I know is the government has been for far too long not doing what the people want and instead pursuing stupid stuff (and harmful in many cases) people don’t want. Looking after their own careers and filling their own pockets. We all know what happens when this continues and becomes intolerable. And maybe that is our destiny, but I pray not. Your nickname for the President is funny, must be an East Coast or DC thing, never heard that one before. Then again I haven’t been indoctrinated by fake news.

 

[DCV]

All new is fake, if you don’t like it. So I hope Agent Orange does all he promised and when inflation gets back to 8 percent, interest rates go back up, people lose their ACA coverage, GDP is down and nobody is around to work agro jobs, I’ll have lots of fun smearing all of it into the faces of his supporters.

 

[FLYARMY]

You can say all you want. BUT, my BEST financial times occurred under the Trump Administration. I am a registered Independent. Time will tell. I truly do believe that the federal government needs an enema.

 

[rubberduck]

All new is fake, if you don’t like it. So I hope Agent Orange does all he promised and when inflation gets back to 8 percent, interest rates go back up, people lose their ACA coverage, GDP is down and nobody is around to work agro jobs, I’ll have lots of fun smearing all of it into the faces of his supporters.

It’s like you hate the USA. Feel free to leave. Even though I didn’t like 46 and his policies (actually I don’t think they were his because It’s pretty clear he wasn’t calling the shots), I still wanted the American people to do well. I feel bad for you, I mean that sincerely, so much hate, I can’t imagine how much you’re suffering. You’ll have your work cut out for you on your smearing campaign.

 

[T.O.Blackwing]

It’s like you hate the USA. Feel free to leave. Even though I didn’t like 46 and his policies (actually I don’t think they were his because It’s pretty clear he wasn’t calling the shots), I still wanted the American people to do well. I feel bad for you, I mean that sincerely, so much hate, I can’t imagine how much you’re suffering. You’ll have your work cut out for you on your smearing campaign.
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[Deneed4spd]

It’s like you hate the USA. Feel free to leave. Even though I didn’t like 46 and his policies (actually I don’t think they were his because It’s pretty clear he wasn’t calling the shots), I still wanted the American people to do well. I feel bad for you, I mean that sincerely, so much hate, I can’t imagine how much you’re suffering. You’ll have your work cut out for you on your smearing campaign.
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Lots of red but where the blue dots are usually have the highest concentration of college degrees and high paying white color jobs. Even places like TX has blue areas which are most metro areas. Not saying u need an education to succeed in life but most of these blue dots areas probably understand economics better than red areas. Time will tell.

 

[MookdocOE]

Lots of red but where the blue dots are usually have the highest concentration of college degrees and high paying white color jobs. Even places like TX has blue areas which are most metro areas. Not saying u need an education to succeed in life but most of these blue dots areas probably understand economics better than red areas. Time will tell.

Ahh...Yes the biggest lie of it all the "College Degree" lol......what a facking joke! Took just a few decades to create the most useless, under appreciated working attitudes or go-getters one could imagine. Total garbage from the institutions on down with money grabbing from the parents pockets to bastardizing their kids ideology to almost indoctrinating a societal movement of American hating individuals! Just look at the dude assassinated on the streets of N.Y. and the American response?

That is not and would never have been handled by the American public from generations in the past in the manner that it's been currently! Mostly this reaction can be traced right back to that stupid "College Degree" if you want to succeed BS! You now have nothing but useless so called educated adults who can't do the simplest of tasks or relied upon for anything it's beyond repairable imo damage has been done and the monetary side is now upon us!

There are not enough adjectives in the English language to describe what Joe Biden has done domestically and internationally it's beyond comprehensible how somebody could F it up that bad and give away that much....

 

[Finally-a-V]

I did a calculation regarding both terms. Overall, I made about 8% a year under Orange man (factoring out the bad Covid down year). Close to 16% with the current guy. I am dumb founded how much money we've made in the last 12-14 months.

I don't know how any administration can keep cutting taxes. If you're not cutting spending (or entitlements) it's not going to work. Understand, I'm not really a fan of either to be clear, but how can so many people be so stupid to believe what Orange man says? Where were you from 2016-2020? Now he says he's not sure he can lower prices because "when things are high it's hard to bring them down". Well, there you go. The first campaign promise broken.

And for the love of God, can someone explain how tariffs work to him. It's Econ 101. You'd think he'd surround himself with the best people, not crazy rich supporters, but that's politics.

Sorry this thread, again, took a big political turn.

 

[Deneed4spd]

Ahh...Yes the biggest lie of it all the "College Degree" lol......what a facking joke! Took just a few decades to create the most useless, under appreciated working attitudes or go-getters one could imagine. Total garbage from the institutions on down with money grabbing from the parents pockets to bastardizing their kids ideology to almost indoctrinating a societal movement of American hating individuals! Just look at the dude assassinated on the streets of N.Y. and the American response?

That is not and would never have been handled by the American public from generations in the past in the manner that it's been currently! Mostly this reaction can be traced right back to that stupid "College Degree" if you want to succeed BS! You now have nothing but useless so called educated adults who can't do the simplest of tasks or relied upon for anything it's beyond repairable imo damage has been done and the monetary side is now upon us!

There are not enough adjectives in the English language to describe what Joe Bidden has done domestically and internationally it's beyond comprehensible how somebody could F it up that bad and give away that much....

I must have struck a nerve. This thread is definitely has gone across a vast and of topics. Probably last post on this thread.

Yes, you are correct that society has been shifted where we all say you need a college degree. Do I believe everyone should go to college. No. But if you want a job in any Fortune 500 company, you need that piece of paper. It opens a door. If you hate colleges so much, why don’t you go to a surgeon who never went to college. Or hire a person without aerospace engineering to develop rockets to land after they launched. And yes there are many folks who made it big without college degrees such as gates, zuck, but they did get into top schools where they met similar minded folks to kick off their ideas. College serves a purpose. Not all should attend. I also believe tech/trades is a form of college. You pay $$ and you sit in a class and get taught things.

Yes, everyone says it’s Biden Biden Biden who messed it all up. But no one likes to talk about 8-10T that was pumped into economy from Trump - tax cuts, Covid $. And then Biden also pumped in 8T. Don’t quote me on those T, but I believe both spent pretty close to each other. Then throw in supply chain issues. That is what caused all the inflation and the last 4 yrs of pain. But check your 401k or retirement acct, seems like it’s the highest it’s ever been… Hence the rich are richer, the poor are poorer. People forget we are still in trumps income tax level. This is where some college lessons in economy plays out. But if you pump in more $$ through tax cuts, tax corporations less, more tariffs, the folks who will gain are the rich with stocks. If you want lower prices, then you need deflation. Not sure anyone wants deflation since it comes with even more pain. But folks in blue collar areas with no stocks, living paycheck to paycheck will most likely feel more pain.

But many of us also have college degrees and know chasing money isn’t everything. Already crap like polio vaccine should be reassessed. it’s been used a gazillion times across the last 50 yrs, we should make sure it doesn’t cause problems. What a waste of society’s time. Lastly u mention the UHG shooter and how he went to college and how society is reacting. Yes it is awful. I might not like someone or something but using violence shouldn’t be tolerated. But also 60 percent of bankruptcies are due to medical. Insurance companies MO is to make the most amt of $$ for shareholders. That in itself conflicts with do what is necessary to help a person. But UHG shooter went to college. Only evil would come from there. Maybe you should check where Trump went to college….

 

[Finally-a-V]

Maybe you should check where Trump went to college…

OMG.....graduated Wharton with a degree in ECONOMICS!!!!???? And he doesn't understand how tariffs work!!??

Not to mention 10 years to come up with a health care plan and he only has "concepts" of a plan.

My bone spurs are starting to hurt

 

[Roadhawk]

Wow - I think the political issues wrt to retirement have pretty much been covered here...perhaps enough to contemplate without any more posts of this type.

I certainly have some opinions on this as well...but I will try to refrain. One thing I am concerned about is the concentration of wealth which I think is problematic for a bunch of reasons and I think many are reacting to this in a variety of ways. Anyway lets hope it all works out but I do have some worries...

 

[Z51L9889]

Back to our regularly scheduled programming...

What we’ve seen with the stock market in the last 18 months is not the norm. Many financial analysts and bank CEOs believe things will go back to around 3 to 4% growth rate. Anyway, until that happens I won’t be making any major changes.

People and companies borrow money, there’s nothing inherently wrong with it if done wisely and part of an overall strategy. Paying off loans only makes sense if a person’s retirement income won’t support the payments. I owe around $20K on my 5BW at 3%. I could easily pay it off, but it doesn’t make financial sense.

Totally agree. I still have a mortgage and a car loan. I could easily pay both off, but my mortgage is 2.625% and my car loan is 0.9%. I have both payments included in my monthly budget and my retirement income covers the payments, so there's zero financial advantage to pay them off early.