About to purchase- Finance questions

Huntindog wrote:

wing_zealot wrote:

oakbowery wrote:
A few years ago I would have been in your shoes about financing ....

What are my shoes? You know nothing about me or my shoes. You choose cash, I'm happy for you. Using my money would be a stupid decision for me when I can use other peoples money for 4.45% while mine earns 7.66%.

How you handle your finances is totally up to you.

I just have one question. How are getting a bank to pay you 7.66% in todays low interest enviroment?
I and millions of others would really like to know the secret. That kind of return involves risk. Which means that you may or may not make that money. You may actually lose money.

You're risk adverse, I get it, I'm not. I have no problem with people investing their money some place that helps them sleep better at night. I need people like that to keep their money in the bank so I can borrow it at 4.45%. You get the safe return you require, I get the low rate I require, and the bank gets the spread. It's a win-win-win.

As for the secret, it's not really a secret anymore. it's long been known that over the long haul a S&P 500 index fund will return 8%± average annualized return. Yes some years I will lose money, I accept that. Some years I well make 15% or more, I accept that also.

My scenario is 100% real. I bought/financed my last camper just a little over 12 years ago. I paid 4.45%. Over the same exact 12 year period, my investment (the one I could have use to buy that camper with) returned 7.66%. I just one month ago paid that camper off, sold it, and bought a new one. Once again, a 12 year loan and I will not pay it off early. Even when I lose money on my investment for a year or two - I am always in it for the long haul. I do my research, choose carefully, go for long term, and stay with the plan. I don't recall exactly but I think the new loan is 4.49%.