Originally Posted by
SimMonkey
Stimpy,
My family situation requires four cars. They were all paid off numerous times. I shop interest rates all the time : Penfed, AA credit union, Navy Federal. The last time I refinanced all four into a used car rate of 1.49% for five years. I max out their KBB value. Some banks allow you to borrow 115% of their value. I use this cheap money to invest in items that pay much more. This strategy won’t be as effective as interest rates rise, but I think you could still find five years loans at 2.25 today (I’m just ballparking it). To me, that is still cheap money.
So you’re borrowing money on things that depreciate in value (cars) and using the borrowed money to engage in speculation on other financial products/items/instruments? I prefer paying cash for cars, having no debt, and using all my income for investments. There’s no such thing as easy money. Momma said there’s a place you can go if your need money....it’s calld WORK...
Four pieces of advice to never take from pilots : financial, fitness, culinary, and relationship.
Lots of guys are self reportedly “killing it” with financial schemes but seem to have negative net worth. It’s just like getting ripped in the gym: stick to the basics and lift heavy and you’ll do great.