Quote:
Originally Posted by "W"
2ndamend...let's look @ your theory
You have your car burn up tomorrow and you have to buy a new one. You find a used or new but let's say you found a car for 20K
You have 100k cash in investments
Are you going to pay for the vehicle cash 20k or use the banks money at 2%
And let's say your money is making 20%.YTD on returns
You will remove 20k and lose 18% profit off 100k to pay off a vehicle for 20k@2%?
So if you use 20k cash your now at 80k invested so your losing 18%gains on 20K
So your cash only don't look like a smart move in my books
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In this scenario it looks like you are either taking the hit at one time or over a period of time. You are taking 20k out and paying 20k for a vehicle or paying 20k plus 2% over however many months. When you pay cash for the vehicle instead of paying the bank 20k plus 2% interest you put the money back into your investment account each payday where it gains 20% ytd. If you go the loan route each payday you pay money to the bank that has interest instead of putting it into the account that gains 20% ytd.
Please correct me if I'm wrong in my thinking, because my past has proven that I'm a long way from a financial expert.