ORIGINAL: robbcayman
ORIGINAL: TFOX
ORIGINAL: robbcayman
For one, if you put your money in a retirement account it is not liquid without a 10% penalty. Thus, you would lose quite a bit of money toobtain it.Also, you do realize that a roth is post tax dollars, right?
If you have the cash to pay off the note the spread you are making still is not worth it IMHO. BTW, most peoplewho borrow on vehicles don't have that amount of money saved. That is the reason they are borrowing money in the first place.
Bringing up the $300k borrowed by the business man is not a fair comparison. You are talking consumer debt versus venture capital debt. I might also add that 80% of businesses fail, and $300k is really rolling the dice. If you want to build a business I would suggest starting out slow and doing it with cash.
Oh well, agree to disagree.
I am with you brother and working on getting there myself.
I like the fact that if a person would take the average car payment they make and saved it in mutuall funds each month like a car paymentthat by retirement age they could retire a multi millionare.
Yeah, if you put the average car payment (like $470 a month) into growth stock mutual funds averaging 12% (which is the stock market avg for the last 70 years) at age 25 to age 65 every month you would have close to $5 million. This is where Dave yells, hope you like thecar LOL!!!
Even if you have debt just at least get involved with a roth or traditional 401k. At least have a long term game plan, so you don't have to workuntil your 80. My wife's uncle is still working in a warehouse at age 64, because he can't afford toretire on social security. I talked with him and he said he wishes he would have had the vision to put away money when he was younger. I trulyfeel sorry for theman, because his arthritis kills him and heisstill unloading trucks at his age.
The greatest lesson I have learned about money is compound interest is the most powerful force, either working for you or against you.
You tell people this and they think your crazy,especially right now with the market like it is but the average will play out in the long run.