Am I Rich Enough for a 991?
#77
05-22-2014, 05:53 PM
This is incorrect.
For a single person, earning $300k/year is in the top 1%. It's top 5% for married filers. Source: http://www.whatsmypercent.com/index.php.
According to http://www.shnugi.com/networth-perce...etworth=400000
$400k puts you in the 95th percentile.
I'd bet that the typical 30 year old these days has negative net worth.
For the OP--based on what you've posted, affording a 991 seems totally reasonable (especially if the loan is only $30k). Whether or not you want to is totally personal. I know people that make <$100k/year and drive $50k cars (parked in their rented apartments). Conversely, I know people worth millions that drive similar $50k cars.
For a single person, earning $300k/year is in the top 1%. It's top 5% for married filers. Source: http://www.whatsmypercent.com/index.php.
According to http://www.shnugi.com/networth-perce...etworth=400000
$400k puts you in the 95th percentile.
I'd bet that the typical 30 year old these days has negative net worth.
For the OP--based on what you've posted, affording a 991 seems totally reasonable (especially if the loan is only $30k). Whether or not you want to is totally personal. I know people that make <$100k/year and drive $50k cars (parked in their rented apartments). Conversely, I know people worth millions that drive similar $50k cars.
For me rich is anyone who makes $1 more than I do
#78
05-22-2014, 05:56 PM
Ouch.
Ok Admission: Lol, I actually had to look it up.. It's just I remember hearing it before the 80's and knew it was one of those famous guy things
Ok Admission: Lol, I actually had to look it up.. It's just I remember hearing it before the 80's and knew it was one of those famous guy things
#80
05-22-2014, 06:42 PM
The only irresponsible thing I see happening here is that you are paying the bank a finance charge while you have cash in the bank that can't be earning too much interest.... pay that condo off, pay cash for a car and pay your insurance in full every year and you'll be ahead of everyone else
#82
05-22-2014, 07:06 PM
only you can answer this question. Some people will say they can "afford" something as long as they can get a loan for it, others will always pay full cash. And guess what, you'll find all sorts here on 6-spd.
IMO you can afford it. You're in your 30's and single, and you can enjoy this car in a "different" way than you will when you're 45 with a wife, 2 kids and a 4 bdrm house with a large mortgage. Financing is very cheap now, I would probably recommend you put down half cash and finance the rest on a lightly used 991 S or maybe even a Turbo (do NOT go below the S model). Worst case scenario, if your cash flow situation changes then you can easily exit the car, and buying used will minimize the financial hit.
Good Luck, and don't over think it, you'll have plenty of time to second guess when you're married with kids LOL!!
Art
IMO you can afford it. You're in your 30's and single, and you can enjoy this car in a "different" way than you will when you're 45 with a wife, 2 kids and a 4 bdrm house with a large mortgage. Financing is very cheap now, I would probably recommend you put down half cash and finance the rest on a lightly used 991 S or maybe even a Turbo (do NOT go below the S model). Worst case scenario, if your cash flow situation changes then you can easily exit the car, and buying used will minimize the financial hit.
Good Luck, and don't over think it, you'll have plenty of time to second guess when you're married with kids LOL!!
Art
#83
05-22-2014, 07:57 PM
The only irresponsible thing I see happening here is that you are paying the bank a finance charge while you have cash in the bank that can't be earning too much interest.... pay that condo off, pay cash for a car and pay your insurance in full every year and you'll be ahead of everyone else
I intended to pay cash but was able to get 1.99 pct financing....
My investments pay significantly more than that (on average of course) and my interest rate on my home is much higher than that.
So, with cheap money available I'm not paying down any higher rate loan (i.e home mortgage) or selling off investments which return more than that.
That isn't to say you should use cheap financing to go purchase something you can't afford. But assuming you can, you don't pay off higher rate loans when lower rate loans are available.
#86
05-22-2014, 08:30 PM
Man, the internet cynicism in this thread is harsh.
Maybe the op is a troll, maybe he isn't. As the earlier CPA mentioned, I have clients who have six/seven figure incomes who are clueless how to manage their funds--most of them thought the biggest house was the best place to "invest". As jealous as I am at their luck in life (it couldn't be hard work, could it?
), many of them went for immediate gratification because they didn't see other options.
If op is given the benefit of the doubt, maybe he's trying to avoid the mistakes he's heard or seen of other young high income earners--he's seeking some wisdom from personal experiences rather than reading some publication/textbook.
Maybe the op is a troll, maybe he isn't. As the earlier CPA mentioned, I have clients who have six/seven figure incomes who are clueless how to manage their funds--most of them thought the biggest house was the best place to "invest". As jealous as I am at their luck in life (it couldn't be hard work, could it?
), many of them went for immediate gratification because they didn't see other options. If op is given the benefit of the doubt, maybe he's trying to avoid the mistakes he's heard or seen of other young high income earners--he's seeking some wisdom from personal experiences rather than reading some publication/textbook.
#89
05-23-2014, 11:09 AM
The only irresponsible thing I see happening here is that you are paying the bank a finance charge while you have cash in the bank that can't be earning too much interest.... pay that condo off, pay cash for a car and pay your insurance in full every year and you'll be ahead of everyone else
I realize the investment part is variable and what was 30% last year can be -10% this year possibly, but in that case I adjust the strategy and pay off the highest interest loan..
I too grew also grew up listening to people like my father who said "never pay finance charges" just pay cash.. Unfortunately those rules of thumbs were based on overly simplistic assumptions like your money in the bank is returning lower rate than the finance charges.. It is a much more complex finance world now.. It is financially stupid to pay cash for something when the money you use to pay for it can earn you more. It may make you feel better about it, but when it is all said and done your net worth suffers.
The most prudent management strategy is not to avoid paying finance charges it is to always pay off your highest interest debt. But at the same time never use an investment has a higher rate of return to pay off a lower interest loan.
This presumes of course you were already going to make the purchase. The most prudent strategy is just to keep your last car longer and buy lower price items.. But once you decide to purchase, simply paying cash without understanding the implications is short sighted..
Rules of thumbs don't always give the entire picture and must be adapted to the individuals specific situation and investment mix.
Me.. I'm taking someone else's cheap 1.99% money for as long as I can get it..
#90
05-25-2014, 02:31 PM
Here we have an OP that (claims to) make 25k/month fretting over a loan of 34k which would be payments of 650/month...
CF
CF
Last edited by cool flash; 05-25-2014 at 02:35 PM.