MBCBP
05-23-2024 | 09:58 AM
#101
Banned
Joined: Feb 2022
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After tax returns on a 3-4% high yield savings account is still better than the 0% return of paying a 0% long term debt back years in advance and the negative returns when considering the time value of money along with inflationary impact. It's simple math. But if it makes an individual feel better to pay it off now to resist the urge of buying a Corvette or some other high cost purchase have at it. There is a reason Dave Ramsey is popular.
05-23-2024 | 02:07 PM
#102
Gets Weekends Off
Joined: Sep 2015
Posts: 5,578
Likes: 237
From: UNA
05-23-2024 | 03:39 PM
#103
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Joined: Apr 2007
Posts: 5,629
Likes: 654
05-24-2024 | 04:41 AM
#104
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Joined: Jul 2008
Posts: 5,590
Likes: 346
That zero percent loan isn’t as great of a deal as you think. It was baked into the price of the car. If you forgo the zero percent loan, you could usually get some other incentive knocked $3-$5k off the price. Back then a loan was easily under 3 percent anyway so the other incentive was worth more. The zero percent loan was just a different way to frame an incentive.
05-24-2024 | 04:54 AM
#105
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Joined: Dec 2007
Posts: 6,220
Likes: 273
That zero percent loan isn’t as great of a deal as you think. It was baked into the price of the car. If you forgo the zero percent loan, you could usually get some other incentive knocked $3-$5k off the price. Back then a loan was easily under 3 percent anyway so the other incentive was worth more. The zero percent loan was just a different way to frame an incentive.
05-24-2024 | 04:57 AM
#106
Roll’n Thunder
Joined: Oct 2009
Posts: 5,178
Likes: 590
From: Pilot
There are still some 0% stuff floating out there. Replaced 2 AC units and got 0% for 18 months. Of course they are hoping that you either miss a payment or don’t pay it off in full by the deadline because then the 20%+ rate kicks in on the full purchase price. I’m paying it off in 12 months to ensure plenty of wiggle room.
05-24-2024 | 05:16 AM
#107
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Joined: Jul 2008
Posts: 5,590
Likes: 346
Correct. But you can get a different manufacture incentive worth more than the zero percent loan if you paid cash.
05-24-2024 | 05:40 AM
#108
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Joined: Mar 2008
Posts: 4,107
Likes: 103
This whole argument reminds me of 2006, where every single person I flew with told me I was the stupest person on earth that I didn't cash out my fully paid for home (with the mortgage firm they were shilling, of course) and immediately invest the proceeds into the market.
I'm not a doomsday guy by any stretch, but it took almost 10 years for the market and most real estate to recover from the 2008 implosion. I hope some didn't lose on that trade. I was heavy into basically cash at that point, so dodged the worst of it, but it sure stung when those 4% CDs that people laughed at 12 months previous rolled over to 0.05%.
I'm not a doomsday guy by any stretch, but it took almost 10 years for the market and most real estate to recover from the 2008 implosion. I hope some didn't lose on that trade. I was heavy into basically cash at that point, so dodged the worst of it, but it sure stung when those 4% CDs that people laughed at 12 months previous rolled over to 0.05%.
05-24-2024 | 06:28 AM
#109
Gets Weekends Off
Joined: Jul 2010
Posts: 3,876
Likes: 122
This whole argument reminds me of 2006, where every single person I flew with told me I was the stupest person on earth that I didn't cash out my fully paid for home (with the mortgage firm they were shilling, of course) and immediately invest the proceeds into the market.
I'm not a doomsday guy by any stretch, but it took almost 10 years for the market and most real estate to recover from the 2008 implosion. I hope some didn't lose on that trade. I was heavy into basically cash at that point, so dodged the worst of it, but it sure stung when those 4% CDs that people laughed at 12 months previous rolled over to 0.05%.
I'm not a doomsday guy by any stretch, but it took almost 10 years for the market and most real estate to recover from the 2008 implosion. I hope some didn't lose on that trade. I was heavy into basically cash at that point, so dodged the worst of it, but it sure stung when those 4% CDs that people laughed at 12 months previous rolled over to 0.05%.
I wonder how wonder 25-30yr old hired would feel if we need to take concession. It’s just a matter of time before delta comes to the door knocking, when S hits the fan.
05-24-2024 | 09:36 AM
#110
Gets Weekends Off
Joined: Apr 2007
Posts: 5,629
Likes: 654
This whole argument reminds me of 2006, where every single person I flew with told me I was the stupest person on earth that I didn't cash out my fully paid for home (with the mortgage firm they were shilling, of course) and immediately invest the proceeds into the market.
I'm not a doomsday guy by any stretch, but it took almost 10 years for the market and most real estate to recover from the 2008 implosion. I hope some didn't lose on that trade. I was heavy into basically cash at that point, so dodged the worst of it, but it sure stung when those 4% CDs that people laughed at 12 months previous rolled over to 0.05%.
I'm not a doomsday guy by any stretch, but it took almost 10 years for the market and most real estate to recover from the 2008 implosion. I hope some didn't lose on that trade. I was heavy into basically cash at that point, so dodged the worst of it, but it sure stung when those 4% CDs that people laughed at 12 months previous rolled over to 0.05%.
An even better play would have been gradually rolling the market position into RE over that period. A hypothetical pilot could have acquired one property per year over the decade from 2006-2015 and built a portfolio of income producing property that exceeds their Delta income. My only regret is that I didn't fall victim to the scam in a bigger way.
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