Want to buy Bluebird

[Leroy Eckert]

One needs a simultanious equation to figure out the tax man. There are far to
many variables. By the way, those points on the credit card which allow you to
fly free aren't free. It is taxable is income. After all, the good folks in DC
need their check every other week for the rest of their life. Of course, it
makes no difference if one is never audited.
Nothing is free in life, it just appears that way. lol

Jon wrote: --- In
WanderlodgeForum@yahoogroups.com, "Jon" wrote:
>
> --- In WanderlodgeForum@yahoogroups.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, "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

On that cash items I was talking about I do use my credit card but
pay it oft at the end of the month. One big advantage to using the
credit card is that I have saved up enough points to take two round
trip flight anywhere in the USA for FREE this year. Jon
Rebel Bird
1978 Special

>






Leroy Eckert
1990 WB-40 "Smoke N Mirrors"
Dahlonega, GA

---------------------------------
Be a better pen pal. Text or chat with friends inside Yahoo! Mail. See how.

[Non-text portions of this message have been removed]