[Bobby_Light]

Originally Posted by mayno

you're taking what i said much too literally. here's a scenario:

if you make $5K a month and want to buy a $10K car and have $10K in savings, with $10K in credit card debt at 16% APR making min. payments.

assume, you have excellent credit and could get a low interest loan of 0% or even 1.9% from Honda or Toyota (these are very realistic rates btw)

the dumbest thing to do would be to purchase the car lump sum (i.e. use $2K from your checking and $8K from savings).

much better off putting 0 down for the car even if you got a 1.9% APR (comes out to about $490 in interest fees over a 60 month period OR about $100 a year) and to instead significantly pay down the credit card balance. you get absolutely raped on interest when you pay the min on a high interest rate credit card.

in this case you're simply saving money instead of earning any. would be better if you had no credit card balance and put 0 down on a car (w/ 1.9%) and put half of your savings and 20% of your monthly income towards your 401K instead of paying the car off in full. there's no point and you lose your investing firepower.

Your friend has too many cars if he is not paying cash for them. I am talking WEALTHY people. They don't borrow money. They don't pay interest. They don't have to. They pay with cash. Done deal.

A car is a dumb purchase. The real dumbest thing you can do is have a stable of cars you owe money on. I am not envious of a person who OWES more on cars than I make in a year. Think about it.

[Robertbog]

Originally Posted by mayno

assume, you have excellent credit and could get a low interest loan of 0% or even 1.9% from Honda or Toyota (these are very realistic rates btw)

if you are buying a chevy or a honda.... case closed.

Americans love debt, enough to justify it. Just dont have a shit load of debt to balance in the first place, because none of that is real anyways.

[jaiman]

Originally Posted by mayno

guys, this is getting annoying.

first off, wealthy people (at least the smarter ones) don't simply rely on their primary occupation to provide 100% of their income. smarter, more savvy people invest in other areas and sometimes even earn more than their primary job: stocks, commodities, real estate, VC investments, rental properties etc.

wealthy people (being rich is different than wealthy - like a janitor winning the lottery makes him "rich") receive consistent high income from multiple sources by diversifying their investments across many channels. ever hear of companies like UBS, Fidelity, Citigroup etc., these firms provide a service called "wealth management."

in layman's terms, it's all about taking a lot of hard earned cash and turning it into EVEN more money. I'm not going to go on and on...on what else he does to earn income. BUT just based on his and his wife's income, they can easily finance those cars.

Read what I wrote again, I said low 8 figures anually. that is 10 million per year, minimum. I'm pretty well versed in the difference between rich and wealthy. But if you want to continue being impressed by your "wealthy" dr friend, go nuts.

[Robertbog]

Originally Posted by jaiman

Read what I wrote again, I said low 8 figures anually. that is 10 million per year, minimum. I'm pretty well versed in the difference between rich and wealthy. But if you want to continue being impressed by your "wealthy" dr friend, go nuts.

In 8 years, wow, what does that tell you about money.

[jaiman]

Originally Posted by Bobby_Light

Your friend has too many cars if he is not paying cash for them. I am talking WEALTHY people. They don't borrow money. They don't pay interest. They don't have to. They pay with cash. Done deal.

You are categorically wrong. Wealty people have no problem acquiring debt if the rate of return they can hit is higher than the interest they will pay.

That said, unless you are buying super exotic cars that you will keep for 25+ years the ROI on cars is most likely negative and they are a wealth destroyer.

[jaiman]

Originally Posted by Robertbog

In 8 years, wow, what does that tell you about money.

what???

[Robertbog]

Originally Posted by jaiman

what???

totally confused myself

[Bobby_Light]

Originally Posted by jaiman

Wealty people have no problem acquiring debt if the rate of return they can hit is higher than the interest they will pay.

That said, unless you are buying super exotic cars that you will keep for 25+ years the ROI on cars is most likely negative and they are a wealth destroyer.

Agreed.

[PLAYON]

No Pics?? Boooo.

[mayno]

Originally Posted by jaiman

Read what I wrote again, I said low 8 figures anually. that is 10 million per year, minimum. I'm pretty well versed in the difference between rich and wealthy. But if you want to continue being impressed by your "wealthy" dr friend, go nuts.

ummm...not impressed by his wealth. I'm impressed by his car collection and how quickly he got it. if i wanted to be impressed with wealth, i simply look at my ceo and the co-founder of the company i work at...they're both billionaires.

I also know another billionaire family (not as well as the other two) when i worked for a little internet startup that was later acquired.

believe me, I know wealth as I've been to their homes and have played golf w/ them on exclusive country clubs. so don't think that i'm so "impressed" by my wealthy friend...that's absurd. i simply like his car collection. get it? good!

[Dwn2earth610]

Originally Posted by mayno

ummm...you obviously don't know the way flickr works. there's a privacy setting that you can enable for your photo sets. those are not indexed by G or Y!.

maybe you dont know how is works bc here is the link to the albums...


http://www.flickr.com/photos/10722018@N05/sets/

[mayno]

Originally Posted by Dwn2earth610

maybe you dont know how is works bc here is the link to the albums...


http://www.flickr.com/photos/10722018@N05/sets/

good for you...you've proven that you have so much spare time that you can look through countless pages of pics and find my friend's page. good job.

anyway, looks like he didn't set it to private. BUT if he did, it would NOT be indexed by any search engine...I should know. I work for one of them.

[truong321]

now this thread is getting interesting.

[truong321]

he has a gt3 rs , 997 turbo, and cayenne turbo...... tell him he is a hero

[Comet]

Originally Posted by mayno

good for you...you've proven that you have so much spare time that you can look through countless pages of pics and find my friend's page. good job.

anyway, looks like he didn't set it to private. BUT if he did, it would NOT be indexed by any search engine...I should know. I work for one of them.

well.. you should have done your research as to if it was set on private... since you should know, cuz u work for one of them...


I'm curious where he stores his cars

his car-hold (view below) and drive way look like they can only fit at most 4-5 cars
where he obviously has more



PS: small houses

[schadenfreude]

Originally Posted by jaiman

You are categorically wrong. Wealty people have no problem acquiring debt if the rate of return they can hit is higher than the interest they will pay.

As stated above, agreed. Prime example is student loans. (I'm sure the OP's family had their share of those with 2 doctor's in the household) Why would you dump all your excess income into paying them off at 2.25% or so, when you can easily beat that with even a CD? Not to mention the many other (ie: better) investments out there.

Maybe if you're "wealthy" you don't care, but if you're trying to build wealth, there's strategy involved.

[c0nstant]

arguments spark out of some of the most 'innocent' threads on this forum

[MadDog]

Originally Posted by jh valley

arguments spark out of some of the most 'innocent' threads on this forum

+1. Time for some

[Dwn2earth610]

Originally Posted by mayno

good for you...you've proven that you have so much spare time that you can look through countless pages of pics and find my friend's page. good job.

anyway, looks like he didn't set it to private. BUT if he did, it would NOT be indexed by any search engine...I should know. I work for one of them.

first of all i just searched on of the cars and it was on the first page, second of all dont tell me how much spare time i have... im 19 years old its not like i have that much to do, and now your just pissed that i posted your friends public photo album. deal with it

[Krueger///M3]

Those are some pretty awesome car, but it's funny because in the pics it looks like a normal everyday tract-home with a bunch of exotics parked on the driveway.

[G-Mach1]

Originally Posted by mayno

good for you...you've proven that you have so much spare time that you can look through countless pages of pics and find my friend's page. good job.

anyway, looks like he didn't set it to private. BUT if he did, it would NOT be indexed by any search engine...I should know. I work for one of them.

I didn't want to get in to this mess......but I just couldn't help my self.
This is typical "Pot calling the kettle Black". That's all I have to say folks

Those houses as others said only could fit max about 4-5 cars (including two in the garage) and about 2 in the driveway and then what.... 5 parked on the street? Seems a bit unreal for a 'baller' to live in a house and have a lump sum of over 1M++++++ in the street.....in such an un-exclusive house?

Some people need to rethink what they do......