NEW TRUCK!!!
Is on the way. We pulled the trigger today on a 2020 Silverado High Country 3500 DRW Crew Cab Duramax/Allison 4x4. Got just about everything but the Sunroof and blackout lights. Should arrive in 8...
Forum Discussion
nickthehunter wrote:Huntindog wrote:Let me answer your question about 2008. Just Google The worse 10 years in stock market history and you'll have your answer. But no matter what I say, your mind is already made up and not open. So be it. But you really shouldn't be giving finacial advice if you think saving money and earning money is the same thing.mich800 wrote:Huntindog wrote:nickthehunter wrote:Must be new math. So you are saving money... That is the same as earning it... The big difference is it is tax free, and risk free. There are NO investments paying over 8% that are risk free. You CAN and people DO lose money on such investments. You yourself only give your stats for the last 9 years.. How did 2008 work out for you?Huntindog wrote:Clearly a false statement. You get zero earnings by paying a loan off. You get a savings of your own money you are not spending. Same as making a decision not to buy a snickers bar, money not spent, zero money earned. What you did do however, was lose the ability to earn potentially significant gains on the money you just spent to pay off that loan. And remember, you still have the ability to pay off the loan any time your gains no longer justify having it. In the meantime, you can gain very real earnings on which I gladly pay the tax, as I laugh all the way to the bank. My tax on 8.59% earnings is less than 2%.
...But paying off, your 6% loans results in 6% earnings, garuanteed, risk and tax free...
Nick is actually correct. In simplest terms. If you have $100k in your gun safe and don't spend any of it, did you earn $100k that year? Spending frugally allows you to earn money by investing what you did not spend. But the simple act of not spending does nothing. If fact it is a net loser adjusting for inflation but very safe from market risk.
It also allows you to lose money, including your principle.
I notice how Nick does not talk about 2008, when just about everyone lost money on investments... True, most people have done alright, including myself since then, but even in a bull market, there are losers. In fact in todays market, it is harder than ever before to find safe investments that will pay more than what inflation and taxes will take.
Just remember, I still have the money to pay off the loans any day I want plus I get to keep the accumulated earnings.
Actually, I want to thank you. It's people like you so afraid of losing money who play it so safe that you will take peanuts for return on your investments that allow people like me to borrow that money and only pay peanuts to you while i keep my money invested in more reasonable ways (remember that Google search).
Yup I lost money in 2008. Even worse I lost a whole ton of money last year. Guess what, I've already made back everyhing I lost last year, plus a boat load more on top of that this year.
So excuse me while I go pay my taxes.
You are making some incorrect assumptions about me. In 2008, I was at a field trial when the markets started tanking. There were a lot of people there that were visably shaken. One actually asked me what I was going to do.
I told him I was going to let it ride. The investments I had were just as solid then as they were before, and would bounce back... But what was different about my position vs many of the others is that my truck and TT were paid for. Others had to make a difficult decision.
Cash out their investments, therby locking in a loss to pay for their financed rigs, or let the banks take them back.
I did not have to make the hard choice. In fact I bought a new truck and TT with cash before the market recovered. Prices were REALLY good for awhile.
And while I was enjoying my paid for stuff with the money I did not have invested, my investments came roaring back.
So during this downturn, my lifestyle improved. Many of my aquaintences still haven't fully recovered.
