Great Loan Rate!!

dahkota wrote:

ScottG wrote:

Your going to get some heat for that but I agree.
Never buy toys on time. Save a few bucks and buy something used but decent.
That strategy has served me well and now I'v retired at 50.
Just a suggestion - sorry for the hijack.

Interesting. We always bought new, got loans most of the time. We made sure our retirement and investment accounts earned a higher % than our loan rates. Never saved money in a bank as the interest rates were crap. But we managed to retire at 47 with no debt. And we are not members of the 1%. I don't think we are member of the top 10%.

We have a loan on our current rig, which we full time in. We have more money in our retirement and investment accounts than we did when we left almost 1 year ago. Our accounts are making more money than our loan payments, the interest on the loan is tax deductible, and we don't have to worry about capital gains tax from selling assets.

Sometimes, borrowing money is cheaper than spending what you have.

Absolutely.

I never understood the "always pay cash" crowd.

If you can borrow money at 2.99%, but earn greater than that on your investments (not hard to do), why would you not take the loan and let your money work for you?

I think it's funny when people look at me sideways for buying new cars/trucks and financing them. I am financing them at 0.0%, or, at most, 1.9%. The interest I pay on 40K over three years at 1.9% is less than I would earn in interest by investing that 40K.