# Can I afford it?



## Autoputzer (Mar 16, 2014)

Gary J said:


> S&P 500 ETF goes up 8.5% over an investment lifetime. If you are more risk averse than that try a mattress.


... except for late-2007 through early-2008. I bought two a-holes on Wall Street new Porsche 911's during that time. But, they gave them back to me in the later years.

Late-2000 to early-2003 also sucked, but not as much.

S&P 500 Year to Date: -0.54%
S&P 500 One Year: 7.56%

My 401(k) equivalent (for federal civil service and military) has an S&P 500 index fund. I stay out (in short term treasury instruments), but jump in after a drop, and then jump back out after it goes back up and starts going flat again. Doing this, my one year RoR is a little over 12%. My YTD RoR is more like 20%.


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## Hookster57 (May 9, 2015)

EconoBox said:


> As long as you only buy stocks that go up, and this is a great strategy.


Yes, of course, that's what I meant. Only pick winners 
Simply put it in passive index ETF/bond mix fund and history is on your side. I think the original poster is young enough to recover from a downturn.


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## Gary J (Dec 18, 2013)

Autoputzer said:


> ... except for late-2007 through early-2008.


:banghead:



Gary J said:


> S&P 500 ETF goes up 8.5% *over an investment lifetime*. If you are more risk averse than that try a mattress.


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## Robin128 (Oct 8, 2012)

Reality...well said.

:thumbup:


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## Robin128 (Oct 8, 2012)

Fish23 said:


> In the month since I wrote post to which z3jeff refers, my lady half of the next door neighbor, the wife of my good friend (and best man at my wedding) and the wife of a close colleague of my wife's have all passed away due to various causes. Two years ago my sister-in-law suddenly passed away. None of these ladies was older than 62 and they left us far too soon.
> 
> That much death within one degree of separation is sobering and reinforces the apt cliche that life is too short. Like others have said, if your overall financial health is good and you can afford it, go for it and avoid the regret to which z3jeff refers and with which I concur. (My apologies for the macabre tone of this post)


+1

Real world.

:thumbup:


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## Robin128 (Oct 8, 2012)

On investment in shares I have to say I have never lost a penny...even made enough after tax to pay off all my debts. But I could have always made more.

Now...I don't go near the Stock Exchange because there is to much risk generally and anyone that thinks they can second guess industries...good luck.

Unless I get some reliable knowledge that shares are going a particular way then I'll not participate in any such transactions be it bull, bear or stag.

Not bragging but I could write a cheque for a new full spec M3 tomorrow...but I am quite happy with my 8 year old 57,000m 335i.

Perhaps in a year or two I might trade in for the more powerful version with a few thousand miles on the clock...400 bhp etc.

There is an nice warm feeling from holding a tidy balance in the bank and still having a reliable 306bhp under your hoof.


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## stratplexi (Jul 28, 2015)

I have been buying into the stock market consistently since 1986. I understand long term investing and dollar cost averaging. I still stand by my advice of paying cash for depreciating assets and it will cause you to use restraint.


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## Robin128 (Oct 8, 2012)

Modigliani and Miller...didn't they once prove a managed fund was no better than unmanaged??

Big problem is knowing the alpha and beta risk factors...ie those that affect all shares and those that affect certain industries differently. 

Really big one is forecasting next SE crash. What will be the cause? Credit crunch revisited...how many more bale outs can we afford ie QE? And contagion from Greece, China etc. or natural disaster eg California and its faults, Eastern seaboard sunami, nuke terrorism.

Get your new M4 and gold digger now!

:thumbup::angel:


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## Gary J (Dec 18, 2013)

stratplexi said:


> I have been buying into the stock market consistently since 1986. I understand long term investing and dollar cost averaging. I still stand by my advice of paying cash for depreciating assets and it will cause you to use restraint.


Only if you are in denial. I pay cash and still max out options. Most people know exactly what they are spending whether it is debit or credit.


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## Autoputzer (Mar 16, 2014)

Gary J said:


> Only if you are in denial. I pay cash and still max out options. Most people know exactly what they are spending whether it is debit or credit.


Restraint has different forms: model of car, number of options, and the time before replacement.

This time around, I restrained myself on the model somewhat (no M5), but went dog nuts on the options. But, I plan to keep this car eight to ten years, 100k to 120k miles.


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## Edgy36-39 (Jan 29, 2008)

Wow. Forget the no-show OP, these answers really demonstrate the maturity level of this board!

Unless you've got money to burn, buying new makes no financial sense. Nor does making a sizable down payment to rent a car for three years. 

Doesn't mean you can't get something really nice. Both my cars were expensive from used perspective, but nothing like new.


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## Hookster57 (May 9, 2015)

Who the hell wants a used car?


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## cpariddler (Jul 29, 2015)

Someone that likes to let someone else take the depreciation hit


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## gkr778 (Feb 8, 2013)

Hookster57 said:


> Who the hell wants a used car?


A lot of people. In 2014, Americans in aggregate bought 42 million used cars compared to about 16.5 million new cars according to Manheim.


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## z3jeff (Oct 20, 2014)

Purpose also is an important reason on whether or not to buy new or used. I have bought over 25 new cars in my 50 years of driving and 3 used cars: my 1st 2 in college and a 2001 Z3 last September. I already have 2 cars purchased new for daily drivers and the Z3 for weekend and warm weather fun. This is the purpose of this one.


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## EconoBox (Aug 9, 2011)

Hookster57 said:


> Who the hell wants a used car?


People who like to BE wealthy, instead of try to LOOK wealthy.


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## Hookster57 (May 9, 2015)

Oh really. Whatever. Sounds like something a bean counter would say.


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## SammieV (Aug 1, 2015)

I drive a 2011 335is convertible, bought as a CPO with 11,000 miles. Called by some reviewers, a poor man M. Its the same engine as a M2 2015. I love it, with about 54k by this time. Still under Warranty. Paid 65k and NADA today has it as 32k. over four years. Avoiding that first year or two of depreciation helps. They are hard to find as convertibles, but there is one on eBay today still under warranty. Check out this review: https://www.youtube.com/watch?v=KS9XTrW4d6E

One rule of thumb not mentioned, after adding your cost of house and cost of car, never exceed 50% of after tax income. Of course you should be much lower that 50%, but above 50% means guaranteed problems.

The advice to pay for your retirement first, is well taken.


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## Hookster57 (May 9, 2015)

That's all very well and good. Still, if someone prefers Virgins over saving 7-8% to get sloppy seconds I don't think they should be disparaged. 
And that has nothing to do with "wealth."


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## Edgy36-39 (Jan 29, 2008)

> over saving 7-8% to get sloppy seconds


7-8 percent? Clearly you don't understand how fast a new car depreciates.


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