Financing Survey
Hey all, I'd like to take a quick survey of the group. Basically, when you bought your Trailer/RV, did you finance? But, lets go a little deeper. Not just did you finance, but these questio...
Forum Discussion
For us, financing was the only method that made sound financial sense. We have a lot of our money invested. Withdrawing it would have cost 15% off the top in capital gains tax. Additionally, it would have bumped us up a tax bracket, from 15% to 25%, costing us an additional 5%. So, 20% off the top is way more than our interest cost us. And, we will get a tax break on the interest.
If your money is sitting around in a savings account, earning less than 1% interest, it makes sense to spend it - it isn't doing you any good (not even keeping up with inflation). But, if it is invested and earning more money (5-12%), it makes sound financial sense to leave it there.
We will pay far less in interest on the loan than we would pay in taxes and lost income. We are retired and managed to do so at 47 with sound fiscal management. Our investments make more money than we draw each month so we actually have more money today than we did 8 months ago when we retired. Borrowing money doesn't mean you can't or won't have an abundance of wealth. Sometimes it just means you have done the math and it makes sound financial sense.
If your money is sitting around in a savings account, earning less than 1% interest, it makes sense to spend it - it isn't doing you any good (not even keeping up with inflation). But, if it is invested and earning more money (5-12%), it makes sound financial sense to leave it there.
We will pay far less in interest on the loan than we would pay in taxes and lost income. We are retired and managed to do so at 47 with sound fiscal management. Our investments make more money than we draw each month so we actually have more money today than we did 8 months ago when we retired. Borrowing money doesn't mean you can't or won't have an abundance of wealth. Sometimes it just means you have done the math and it makes sound financial sense.
