The Investment Thread (stocks, bonds, real estate, retirement, just not gold)

[emergentmd]

Its not that you can't afford it, it is because you choose not too. Unless you have some massive debt, obigations, or bunch of ex wives, there is no reason a doc who worked so hard for many years, sacrificed the best years of his/her life can't buy a 70K car making 400K.

Many people die multi millionaires who spend hours clipping coupons b/c mentally they can't get over the hurdle of spending money.

I have a relative whose household income is prob 300K+ who makes it miserable going to vacations with. When we go buy ice cream, she buys one order for her 3 teenage kids. We go to eat and when its her turn to pay, she waits for someone to pick up the check.

Her house needs some serious renovation but has analysis by paralysis for the past 5 yrs. She will die a multi millionaire but makes people around her miserable including her kids/husband. What she doesn't understand is when she dies, someone is going to spend her money. Maybe penny pinching truly makes her happy..... but I think its a mental disorder to not spend money to enjoy life after all of your hard work/sacrifices. She would spend 5 hrs driving around town to save a few bucks but really she lost 5 hrs of her life saving a few bucks.

Everything in life is a balance. Both extremes of spending are a mental disorder.

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[mentos]

Can I afford a 70k car? I don't think I can. I have been struggling with that decision for 2-3 months now.

We drive a 2008 Lexus ES and 2009 Acura MDX.

Income was 401.5k last year (and another ~20k net in real estate investment). Net worth is a little over 1 mil.

Mortgage payment is < $1600/month and I will start paying back student loan in April, which might be ~$2900/month. No other bills except groceries/utilities etc...

I am genuinely concerned that a 70k car is too expensive of a car for my financial situation.

I think a 40k car is what I should buy, which I can pay cash for and still have 6-month emergency fund, but my spouse think we can afford a 70k car.

What you guys/gals think?

By the way, I could make an extra 12k/yr in real estate, but I am helping a good friend who wants to save money to buy a house.

Are you serious, with a 400k income you can afford a 200k car. Isn't the average new car like 50k now?

 

[Splenda88]

Are you serious, with a 400k income you can afford a 200k car. Isn't the average new car like 50k now?

Correct.

I probably will pull the trigger in 2 months.

 

[libra08]

What she doesn't understand is when she dies, someone is going to spend her money.

Exactly. Enjoy your money. It is often something your children also want you to do.

When I was an intern, my boss was this lady who financially screwed her barely above minimum wage workers so she would stay under budget and get her yearly bonus. I am talking about a well paid pharmacist who is married to a doctor and lives in a $3m house. Unbelievable what some people are willing to do for an extra buck.

 

[owlegrad]

It’s not an issue of affording it, it’s an issue of if it is worth it to you. Only you can answer that.

But yes clearly you can afford it.

 

[PharmDBro2017]

Lmao income 400k+ and asking if you can buy a 70k car.

 

[owlegrad]

“Sacrificing the best years of your life” - what sacrifice? College life is awesome.

 

[Splenda88]

Lmao income 400k+ and asking if you can buy a 70k car.

I am in my 40s and I don't think I am in a good financial standing. I would not worry about spending 70k on a depreciating asset if my net worth was 2.5+ mil.

 

[sunnyandseventytwo]

I am in my 40s and I don't think I am in a good financial standing. I would not worry about spending 70k on a depreciating asset if my net worth was 2.5+ mil.

Let me be the voice of reason on this thread. If you've got student loan debt, don't buy this car.

 

[RxPreceptor]

Biggest opportunity to waste money…cars. This is called “the investment thread“ right?
Ok, I guess some people care about how they are perceived based on what kind of car they drive?
Others, you know, 🧠 getting from point A to B reliably

 

[libra08]

Think of it this way…the difference between $70 k vs $40 k car is $30 k. If you drive it for 10 years then that is just $3 k/year (not including insurance). How many hours do you have to work to make $3 k?

 

[Splenda88]

Think of it this way…the difference between $70 k vs $40 k car is $30 k. If you drive it for 10 years then that is just $3 k/year (not including insurance). How many hours do you have to work to make $3 k?

18.7 hrs if I don't have to pay taxes.

 

[RxPreceptor]

Like, OMG…how much will it cost you in interest for not using the 30k difference towards paying off your student loan debt that you are estimating to be ~$2,900/month? I’m estimating (total loan) somewhere around 250k? Loan interest calculator tool might be able to shed some light on

if I were in your shoes, keep growing your funds in a brokerage account or even HYSA until April to kill off as much debt as possible

 

[Splenda88]

Like, OMG…how much will it cost you in interest for not using the 30k difference towards paying off your student loan debt that you are estimating to be ~$2,900/month? I’m estimating somewhere around 250k? Loan interest calculator tool might be able to shed some light on

if I were in your shoes, keep growing your funds in a brokerage account or even HYSA until April to kill off as much debt as possible

Not sure

I guess I will know what to when it's time to buy that car.

 

[libra08]

Like, OMG…how much will it cost you in interest for not using the 30k difference towards paying off your student loan debt that you are estimating to be ~$2,900/month? I’m estimating somewhere around 250k? Loan interest calculator tool might be able to shed some light on

if I were in your shoes, keep growing your funds in a brokerage account or even HYSA until April to kill off as much debt as possible

Dude makes $400 k a year…that extra $30 k is not going to make or break him.

I have been there…investing like crazy. I can say now with confidence that “wasting” some money is not going to make that much of a difference long term. You will reach your financial goal way before everyone else and you probably wont need as much money as you think you do.

Instead avoid the big financial mistakes in life like a nasty divorce, a bad gambling habit, over leverage investment….those things will kill your personal finance.

 

[emergentmd]

If someone took home 100K, I am sure most would think buying a 20K car is reasonable. But that person with 100K prob has 50K in disposable income after paying all living costs. So buying a 20K car with 50K disposable income.

Someone taking home 400K would have 350K in disposable income assuming same cost of living. So buying a 70K car with 350K disposable income.

Let this sink in. You have 7x the disposable income as someone who makes 100K. You could buy a 320K car and have the same amount of disposable income as the first guy.

When you die, the money you save will just be spent by someone else.

 

[Rockinacoustic]

So, what is said $70k car?

 

[libra08]

Who wants to buy this home in south Pasadena for $1.25m?

 

[sunnyandseventytwo]

Who wants to buy this home in south Pasadena for $1.25m?

View attachment 380801

Hard to beat that location.

If you read the listing, it's considerably larger than your photo indicates. There's a garage that's been converted to an apartment and a basement. My guess is it goes for closer to a million than 1.25.

 

[sunnyandseventytwo]

Dude makes $400 k a year…that extra $30 k is not going to make or break him.

I have been there…investing like crazy. I can say now with confidence that “wasting” some money is not going to make that much of a difference long term. You will reach your financial goal way before everyone else and you probably wont need as much money as you think you do.

Instead avoid the big financial mistakes in life like a nasty divorce, a bad gambling habit, over leverage investment….those things will kill your personal finance.

Of course it won't break him, but it's not just $70k. Splenda actually needs two cars. And in three years, he'll have a 3 year old $40,000 car (or two) and all his coworkers will be buying new Audis. This is the ultimate in lifestyle creep.

 

[libra08]

Of course it won't break him, but it's not just $70k. Splenda actually needs two cars. And in three years, he'll have a 3 year old $40,000 car (or two) and all his coworkers will be buying new Audis. This is the ultimate in lifestyle creep.

You are saying he doesn’t have any control?

 

[mentos]

SEC ends crypto drama by giving the green light to 11 bitcoin ETFs

Money managers got the green light Wednesday to launch 11 spot bitcoin ETFs roughly 24 hours after a fake social media post triggered chaos in the crypto world

finance.yahoo.com

It's on like Donkey Kong!

 

[sunnyandseventytwo]

You are saying he doesn’t have any control?

I've never met him. My guess is since they're driving 15+ year old cars, he's got pretty good control. But it's called lifestyle creep because it's insidious.

 

[Splenda88]

I've never met him. My guess is since they're driving 15+ year old cars, he's got pretty good control. But it's called lifestyle creep because it's insidious.

I would say I have pretty good control when it comes to big purchases. Most people in my position would not hesitate to buy a 70k car.

For instance, when I was looking to buy a house in 2022, approval from the bank was 1.2 mil, but I purchased something for 280k.

I really wanted to purchase something for 235k (~1500 sqft), but my spouse pushed for something a little bit bigger; thus, we ended up buying a ~2000 sqft living space.

 

[mentos]

Here's your sub $25k EV.

Tesla Model 3s from Hertz are going for as low as $14,000

Hertz is starting to sell some of its Tesla Model 3s and they are going for pretty cheap – as...

electrek.co

 

[libra08]

Here's your sub $25k EV.

Tesla Model 3s from Hertz are going for as low as $14,000

Hertz is starting to sell some of its Tesla Model 3s and they are going for pretty cheap – as...

electrek.co

over mileage and used….depleted battery.

 

[mentos]

over mileage and used….depleted battery.

I thought Tesla batteries don't have much degradation?

 

[mentos]

IBIT is live!

 

[libra08]

I thought Tesla batteries don't have much degradation?

Every battery does.

 

[libra08]

3-3.5% YoY inflation is the new normal. Who is getting &gt; 3% pay raise?

 

[mentos]

"Hertz will instead opt for gas-powered vehicles, it said on Thursday, citing higher expenses related to collision and damage for EVs even though it had aimed to convert 25% of its fleet to electric by 2024 end."

"Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter," Hertz said in a regulatory filing on Thursday".

So EVs are not cheaper afterall.

 

[libra08]

"Hertz will instead opt for gas-powered vehicles, it said on Thursday, citing higher expenses related to collision and damage for EVs even though it had aimed to convert 25% of its fleet to electric by 2024 end."

"Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter," Hertz said in a regulatory filing on Thursday".

So EVs are not cheaper afterall.

Teslas aren’t cheap

 

[libra08]

Worth it?

9 months cruise around the world

Destinations & Ports | The Ultimate World Cruise

Get to know the expeditions, destinations, and cities part of the Ultimate World Cruise. America, Antarctica, Asia, the South Pacific, and the Capitals of Culture.

www.royalcaribbean.com

Cost including traveling and excursions is $500-$700,000

 

[mentos]

NVDA had $20 billion in sales last quarter but has a 1.4 trillion valuation. It's still getting hyped to 3-4x again this year. Am I missing something?

 

[libra08]

35x home price

 

[Splenda88]

35x home price

View attachment 381304

I understand why people are angry.

I remember seeing a stats that say the top 10% own 70% of the wealth in this country. It's crazy when you really process it.

 

[Splenda88]

NVDA had $20 billion in sales last quarter but has a 1.4 trillion valuation. It's still getting hyped to 3-4x again this year. Am I missing something?

You probably are not crazy

The stock has been hot.

I missed big time on this one. I almost bought when it was at its bottom.

 

[mentos]

You probably are not crazy

The stock has been hot.

I missed big time on this one. I almost bought when it was at its bottom.

Looks like AVGO is the better buy now. I wouldn't be surprised if it knocked TSLA out of the magnificent 7. EV hype has died down recently.

 

[Splenda88]

Looks like AVGO is the better buy now. I wouldn't be surprised if it knocked TSLA out of the magnificent 7. EV hype has died down recently.

I think it has died down for good.

I should have sold my TLSA shares when it was > $300/share.

 

[owlegrad]

I understand why people are angry.

I remember seeing a stats that say the top 10% own 70% of the wealth in this country. It's crazy when you really process it.

Yes, it is crazy if you stop to think about it.

The crazy statistic to me is that only like 100 families in the US are rich enough to pay inheritance tax and yet how much do you hear about avoiding it or about needing to abolish it. It gets a crazy amount of disproportionate attention.

 

[libra08]

I think it has died down for good.

I should have sold my TLSA shares when it was &gt; $300/share.

Tesla made the mistake of spending its resources on that ugly cyber truck instead of a $25 k EV

Tesla Semi is having production issues. The roadster was expected to be released in 2020 but it is not even close to production. Autonomous driving is nowhere close promised.

Elon lost focus. Tesla is still his bread and butter. Over promised and under delivered

 

[Splenda88]

Yes, it is crazy if you stop to think about it.

The crazy statistic to me is that only like 100 families in the US are rich enough to pay inheritance tax and yet how much do you hear about avoiding it or about needing to abolish it. It gets a crazy amount of disproportionate attention.

Agree. The rich/wealthy have a disproportionate advantage in the system.

I am not advocating for an egalitarian society but I think we can do better.

 

[Splenda88]

Tesla made the mistake of spending its resources on that ugly cyber truck instead of a $25 k EV

Tesla Semi is having production issues. The roadster was expected to be released in 2020 but it is not even close to production. Autonomous driving is nowhere close promised.

Elon lost focus. Tesla is still his bread and butter. Over promised and under delivered

It's time for Elon Musk to step down as a CEO

 

[mentos]

Tesla made the mistake of spending its resources on that ugly cyber truck instead of a $25 k EV

Tesla Semi is having production issues. The roadster was expected to be released in 2020 but it is not even close to production. Autonomous driving is nowhere close promised.

Elon lost focus. Tesla is still his bread and butter. Over promised and under delivered

I never understood the hype. Cybertruck is the worst in all categories except Supercharging stations.

 

[libra08]

It's time for Elon Musk to step down as a CEO

The stock would probably crater if he stepped down. Elon is more of a marketer than an engineer. Being a good marketer is important when Tesla needed funding.

 

[Splenda88]

The stock would probably crater if he stepped down. Elon is more of a marketer than an engineer. Being a good marketer is important when Tesla needed funding.

I think Tesla brand is more like a cult.

I am not even sure why the stock is so high. I will unload my shares if it ever gets to $300/share again.

 

[libra08]

Agree. The rich/wealthy have a disproportionate advantage in the system.

I am not advocating for an egalitarian society but I think we can do better.

Unfortunately this is the natural path. After the 2008 housing market crash, the Fed had to step in, print money and lower interest rates to record low. The rich who are in a position to borrow benefited the most from the Fed’s easy monetary policies. Asset prices skyrocketed as a result.

There was no way the politicians would have let the economy go into a depression. Long term it would have been better to let the market dictate asset prices but there is an election every 2 years and the economic pain would be too great.

 

[Splenda88]

Unfortunately this is the nature path. After the 2008 housing market crash, the Fed had to step in, print money and lower interest rates to record low. The rich who are in a position to borrow benefited the most from the Fed’s easy monetary policies. Asset prices skyrocketed.

There was no way the politicians would let the economy go into a depression. Long term it would have been better to let the market dictate asset prices but there is an election every 2 years.

I dont think anything like that will happen in my lifetime again.

I was offered condos (2BR/1BA) in south FL for 12-15k. Can't even buy a good used car for 12k now.

 

[libra08]

I dont think anything like that will happen in my lifetime again.

I was offered condos (2BR/1BA) in south FL for 12-15k. Can't even buy a good used car for 12k now.

Yes, won’t see it again in our lifetime.

The bubble has gotten too big to be popped. The only option left is to keep on pumping, even at the expense of high inflation.

 

[mentos]

Thank God I refinanced my mortgage under 3%.