Want to buy Bluebird

[bubblerboy64]

Dorn, Show how out of touch I am. I thought those deals were only to
transfer from one credit card to another. How do you get the money
into the first account to start with out being in debt to the tune of
$19000 in the real world?
John Heckman
central Pa
1973 FC
>
> My favorite form of financing is the periodic credit card deals of
0% for a
> year or so on balance transfers. If the fee has a cap, which they
always
> did until lately and some do still, I just take the money and put
it in my
> savings account at 4.75% $90 to borrow $19,000 for 12 months
and earn
> almost $1000 in interest... Who would turn that down?
>
> Of course, they play the odds that you won't be ready or willing to
pay it
> all back before the special deal expires, and I'm sure many can't
or don't,
> but if you are willing to pay attention to the details, you can
come out
> ahead
>
> On Nov 26, 2007 2:48 PM, bubblerboy64 wrote:
>
> > Jon, You want the economy to crash? :-) Pay cash? What's cash?
> > This is way off topic, but there is a generational difference
isn't
> > there? Interesting how priorities are affected by past experience
> > and age.
> > John
> > The Big Napper
> >
> >
> > >
> > > --- In WanderlodgeForum@yahoogroups.com 40yahoogroups.com>,
> > "Gregory OConnor"
> > > wrote:
> > > >
> > > > If you want it , buy it. If you cant afford it, borrow it.
> > > >
> > > > I understood 'Good reasons to finance stories' were
> > justifications
> > > > for making a financed purchase. A reflective look at my
position
> > > > reveal that my "financing is for idiodt theories" ARE healing
> > > > justifications wence turned down for a loan.
> > > >
> > > >
> > > >
> > > > GregoryO'Connor
> > > > 94ptRomolandCa
> > > > "Motorhomes with slides are for idiots"
> > > >
> > > >
> > > > --- In WanderlodgeForum@yahoogroups.com 40yahoogroups.com>,
> > "Ryan Wright"
> > > > wrote:
> > > > >
> > > > > On Nov 23, 2007 1:35 PM, martingregg598
wrote:
> > > > > >
> > > > > > Financing may be the way to go. Let's say that you are
going
> > to
> > > > buy a
> > > > > > $100,000 plus BB. If you get a 20 year note at 6% interest
> > for
> > > > 100g,
> > > > > > the unit qualifies as a second home and you can deduct the
> > > > interest,
> > > > > > and you leave your 100g properly invested returning an
> > average
> > > > of say
> > > > > > 10 %, you are making a 4%- plus gain every year on your
100g
> > > > > > (depending on your specific tax situation).
> > > > >
> > > > > Sort of, not exactly. You need to take money out of that
$100g
> > > every
> > > > > month to make the payments on the coach, so you're going to
> > slowly
> > > > > dwindle it down, reducing your return. Unless you make the
> > > payments
> > > > > out of your income, in which case I don't think you'll be
all
> > that
> > > > > well off. Follow me here:
> > > > >
> > > > > In your example the payment would be $716.43 per month. If
you
> > > take
> > > > > that same money and invest it at 10% over 20 years instead
of
> > > paying
> > > > > it to the bank, compounded monthly you'd have almost $550k.
> > > > >
> > > > > On the other hand, if you leave your $100k in the bank for
20
> > > years
> > > > > and don't pay any extra into it because you're making
payments
> > on
> > > > the
> > > > > coach, at the end of the 20 years you'd have about $730k.
> > > > >
> > > > > Now 730 - 550 = $180k. Interestingly enough, at the end of
the
> > 20
> > > > > years you'll have sent about $172k to the bank to pay for
your
> > > $100k
> > > > > coach. Which leaves you only $8,000 ahead by financing it
and
> > > > keeping
> > > > > your money in the bank.
> > > > >
> > > > > Let's look at the risk you get for your $8,000: You risk an
> > income
> > > > > crisis and not having the ability to repay your loan. If the
> > > market
> > > > > happens to be down about the same time, which is often the
case
> > in
> > > > > financial hardships (Murphy's Law), you risk losing your
> > > portfolio
> > > > as
> > > > > you yank everything out in a down market to get the
creditors
> > off
> > > > your
> > > > > back. You risk huge spikes in interest rates and fees should
> > you
> > > > miss
> > > > > a payment by accident.
> > > > >
> > > > > Is it worth it? Not to me. Assuming you have the discipline
to
> > > > > re-invest the money you would have otherwise sent to the
bank,
> > I'm
> > > > > paying cash for the coach and rebuilding my portfolio out
of my
> > > > > income.
> > > > >
> > > > > Now, if you're actually able to itemize the interest out on
your
> > > > > taxes, you might -- MIGHT -- be able to recover enough to
make
> > it
> > > > > worth the effort. Typically, though, that isn't the case.
The
> > > > standard
> > > > > deduction will typically be higher than the interest on the
> > coach
> > > so
> > > > > unless you have other major things to itemize, you're no
money
> > > ahead
> > > > > with the tax man.
> > > > >
> > > > > In my experience, financing for the interest or tax savings
is
> > > > usually
> > > > > a negative to zero sum game, or otherwise close enough as to
> > make
> > > it
> > > > > not worth the risk and/or the hassle.
> > > > >
> > > > > -Ryan
> > > > >
> > > >
> > > I guess I'm from the old school of financing and that is pay
for it
> > > with cash!!! I really believe that is what is wrong with America
> > > economy today and that is everything is on time payments. What
> > > happen to the days that when you bought something and you paid
for
> > it
> > > or you did not get it? Oh well if a person wants to pay 10
percent
> > > interest on anything than go for it but for me its cash only and
> > save
> > > paying the interest. Product of the depression with a depression
> > > attitude! Jon
> > >
> > > Jon
> > > Rebel Bird
> > >
> >
> >
> >
>
>
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>