Buy now and finance or wait and pay cash
Hello All! I want to full time when I retire in 6 years. Wanting to hear your opinions on whether I should buy something now and finance it or wait until I retire and pay cash. If I finance it ...
Forum Discussion
With out talking about the posibility you coudl die before you read this .. I will talk about a class I took many moons ago in college.> Economics
How are you going to save
Method one: Put money in a saving's account. Back then they paid 5% interest today more like 0.01% Might as well stuff a matress.. Inflation however is much higher than that so your money is shrinking shrinking shrinking.
NOW... If we go into a recession. than that stuffed matress is good.
Or you can invest. A good mutual fund can turn as much as 10-15% which is better than inflation (Today's rates) but ..... You can also lose it. BIG TIME (Think of the folks who invested in ENRON's 401K)
OR you can borrow and buy at say 3-5% interest if you have good credit.
With inflation running higher than that your bill shrinks and you are actually SAVING money plus you get to enjoy it NOW.
SO my professor's advice. and I stress this is HIS advice. was BORROW.
WHich I did. and happy I am.
How are you going to save
Method one: Put money in a saving's account. Back then they paid 5% interest today more like 0.01% Might as well stuff a matress.. Inflation however is much higher than that so your money is shrinking shrinking shrinking.
NOW... If we go into a recession. than that stuffed matress is good.
Or you can invest. A good mutual fund can turn as much as 10-15% which is better than inflation (Today's rates) but ..... You can also lose it. BIG TIME (Think of the folks who invested in ENRON's 401K)
OR you can borrow and buy at say 3-5% interest if you have good credit.
With inflation running higher than that your bill shrinks and you are actually SAVING money plus you get to enjoy it NOW.
SO my professor's advice. and I stress this is HIS advice. was BORROW.
WHich I did. and happy I am.
