Just my opinion
I have noticed quite a few times on this forum when people talk about financing a travel trailer they will get responses saying "save up and pay cash". Well here is my take on it: I will use my exact...
Forum Discussion
Lantley wrote:rk911 wrote:wing_zealot wrote:
Here's my scenario. About 14 years ago I bought my last camper. I financed at 4.2 percent. I kept the "cash" invested. Over the 12 year life of that loan my "cash" earned over 7 percent average annualized return. I am ahead about 5 percent per year. Paying cash forme would have been dumb.
your math works except you haven't taken risk into the equation. risk that your income stream will slip or disappear; risk that something else in life will rear its ugly head necessitating a change. risk. my wife and I were "normal" for a long time. car loans; RV loan, this loan, that loan. then, as Dave Ramsey would call us, we became weird. we paid off the house, started paying cash for cars and yes, we saved, saved, saved for what will likely be our last MH and paid cash for it. the other end of that stick is save, invest, save and then invest more. live beneath your means so later you can pretty much do as you please.
Who said there will be a later? Later in life is not guaranteed.
That doesn't mean live financially irresponsibly,however taking an RV loan to make memories now is not the end of the world.
it can be. grasshopper vs the ant.
