Can I get opions on how I look financially

**bjl584** · 02-08-2013, 07:24 AM

A $25K auto loan is not going to hurt you. You have no debt, a fairly high net worth, and a high salary. I say go for it.

**Nika** · 02-08-2013, 07:43 AM

You are doing good. You can afford the car if you save 50% down while maxing out retirement. Though if life is short, are you sure you want to spend 2 years of it working for a car?

**MonkeyMama** · 02-08-2013, 08:16 AM

Originally posted by Nika View Post

Though if life is short, are you sure you want to spend 2 years of it working for a car?

That's the rub!

I just don't *get* what is so great about spending that much money on ONE luxury. & how can you really enjoy a car like that - it will be very expensive insurance and carrying costs. How are you going to feel every time it gets a scratch? Would you enjoy it any less if you waited to buy it used after a year or two? {I personally think I would have a heart attack if I drove a $50k - it doesn't seem very fun. It would be okay if it came in a big protective bubble}.

If it means that much to you, I would personally only buy luxury like that in cash. If you had $50k cash for it, and is really what you wanted to do, then all the power to you. Certainly different personality types can better handle an expensive car.

I don't think buying *one* car will hurt you financially, but I do think it's an extraordinarily bad habit to get into. So the question is just where do you draw the line. & this is also why I believe paying cash for luxuries like this. The line becomes much more clear. Also, one-time splurges are generally better than locking yourself into car loans, higher license fees and insurance. You will be paying for this car for a long time, whether you finance it or not. If it's paid for and you lose your job, at least you have options to downsize. It's not as bad as other types of contracts that give you less wiggle room (like a mortgage). So I will give you that, but not if you finance a chunk of it.

I'd just think all these things through.

**disneysteve** · 02-08-2013, 08:35 AM

I've got to ask how you reached this point. Even making 180K, having over $1 million in investments and home equity at age 44 is pretty darn impressive. Did you do that all on your own or was there perhaps an inheritance or family gift along the way?

If you did that by yourself, I'd say go out and buy the car and enjoy it to the fullest. You clearly are great at managing your money and living well below your means. There is absolutely nothing wrong with having luxuries that you can afford. Sure, some of us would never spend that kind of money on a car. I certainly wouldn't. I just paid 16K for my "new" used car in June. But if this car will make you happy, I say go for it.

Now if your wealth hasn't actually been your own doing, then I'd want to know more about your current situation such as how much of your income you actually save, etc.

**feh** · 02-08-2013, 09:03 AM

How long have you had that salary? Depending on the answer to that question, I'd expect you to have a bit more saved for retirement, although it's great the house is paid off.

Can you afford the car? Yes. Should you buy it? That's a judgment call only you can make.

**feh** · 02-08-2013, 09:07 AM

Originally posted by disneysteve View Post

I've got to ask how you reached this point. Even making 180K, having over $1 million in investments and home equity at age 44 is pretty darn impressive.

To a certain extent, I would disagree with this assessment. If the OP has been at an elevated salary for an extended period of time (ie 10+ years), it wouldn't be difficult to reach that net worth at 44 years of age.

**disneysteve** · 02-08-2013, 09:17 AM

Originally posted by feh View Post

To a certain extent, I would disagree with this assessment. If the OP has been at an elevated salary for an extended period of time (ie 10+ years), it wouldn't be difficult to reach that net worth at 44 years of age.

True. Being a physician, my point of reference is always skewed because my peers didn't enter the workforce until we were at least 28 and sometimes older. If someone started working and earning big bucks right out of college, they could be at that range for 20 years by now so you're right.

**siggy_freud** · 02-08-2013, 09:18 AM

Originally posted by feh View Post

To a certain extent, I would disagree with this assessment. If the OP has been at an elevated salary for an extended period of time (ie 10+ years), it wouldn't be difficult to reach that net worth at 44 years of age.

I agree. Keeping in mind that he has no kids, which helps a ton in saving.

**disneysteve** · 02-08-2013, 09:26 AM

Originally posted by siggy_freud View Post

I agree. Keeping in mind that he has no kids, which helps a ton in saving.

Didn't mention a spouse either

.

If I was single and childless, I'd have a ton of money saved and would probably be close to planning my retirement at this point and I'm 48. My cousin who remained single retired at 55 and is now living it up in Florida.

**Slug** · 02-08-2013, 10:03 AM

I'm going to assume you're single. Based on that assumption and your impressive financial situation, you should go for it.

Definitely look into truecar.com as a resource for your purchase.

**Campy1** · 02-08-2013, 11:31 AM

It is very interesting to see so many views on a topic like this. Thanks.
Here is some additional info that I missed in my original post:

- I also own a ($300K) rental home outright which gives me $700 additional income.
- I am married so all of my assets listed are a combination from the two of us (actually 80% me, 20% her)
- The assets are from lucky stock trades and very diligent savings

**disneysteve** · 02-08-2013, 11:34 AM

Originally posted by Campy1 View Post

I also own a ($300K) rental home outright

- The assets are from lucky stock trades and very diligent savings

Good for you. Go and buy the car and enjoy every minute of driving it. Why do you need to wait 2 years?

**scfr** · 02-08-2013, 05:02 PM

Originally posted by Campy1 View Post

It is very interesting to see so many views on a topic like this. Thanks.
Here is some additional info that I missed in my original post:

- I also own a ($300K) rental home outright which gives me $700 additional income.
- I am married so all of my assets listed are a combination from the two of us (actually 80% me, 20% her)
- The assets are from lucky stock trades and very diligent savings

If the 180K + 8,400 rental income is your combined household income, then you are doing OK.
(If your spouse also has earned income, tho, then maybe you are a bit behind on your savings ... and definitely are behind if her income is comparable to yours.)

I'd say it depends on what your other goals are. Any other plans on the horizon that will require a lot of money? Do either of you want to retire early? Buy a vacation property? Take expensive vacations? Buy a business? If so, then the car may not be your best choice.

If you decide to buy the car, why not save up and pay cash?

Have you thought about possibly renting the car of your dreams for a weekend or a week ... see if it really gives you $50K+ worth of fulfillment?

**Andrew Jackson** · 02-08-2013, 08:28 PM

Originally posted by Campy1 View Post

- I also own a ($300K) rental home outright which gives me $700 additional income.

I know every area is different. But I am a little confused. A 300K home is only bringing in $700 a month in rental income? By outright you mean no mortgage right? Seems like a house worth that much should bring in much more than just $700 a month. I know in the area I live in it would bring in at least double.

Can I get opions on how I look financially