Want to buy Bluebird

[Tom McCarthy]

Pete,

I have installed cabinet latches on each refrigerator door to assist
in keeping the closed. So far, no real hard stop problems. I also
place spring-loaded bars across each shelf to stop the items from
moving off the shelves.

What I really had a problem with was the pantry door opening on left
turns. I instaslled a push latch that locks it shut while in
transit. No longer have that problem.

Tom @ Shies McCarthy
95 PT42 WBSA EIEIO
Poway CA


--- In WanderlodgeForum@yahoogroups.com, Pete Masterson
wrote:
>
> I'll add that I had no cracks in the tile when we got our '95. A
> 'hard stop' opened the refrigerator, and something heavy fell out,
> chipping one of the tiles on the surface. (An annoying cosmetic
> issue, basically.) Learned a lesson -- I now put velcro strips
around
> the door handles to keep the refrigerator door from opening
> unexpectedly -- and we open the door very carefully the first time
> after we stop. (The home-style refrigerator does not have
> particularly robust means of keeping it closed.)
>
> Pete Masterson
> '95 Blue Bird Wanderlodge WBDA 42
> aeonix1@...
> On the road at Lockhart, Tx
>
>
>
> On Nov 23, 2007, at 6:33 PM, martingregg598 wrote:
>
> > Hi Kurt, any Ideas why the tile cracked like it did on your
coach? Did
> > the grout crack or the tile? On my coach no cracks, I have yet to
drop
> > something heavy on the tile. I have never been a big rig guy so
I
> > can't
> > help but wonder when all those big front-end part ware out?
> > Marty Gregg
> > 95 BMC 37
> > Kennewick WA
> >
>

[Pete Masterson]

I solved the refrigerator door opening with a couple of teflon 'wire
minders' round the handles. The refrigerator also has some snap-
latches used on many of the cabinet doors. I've seen the spring-
loaded bars -- and now that I have the $100 gift certificate for
Camping World, I may get a couple. The near panic stops that toss
things around in the refrigerator are (fortunately) few and far between.

The pantry cabinet has about 6 heavy duty spring loaded snap catches.
It's actually kind of difficult to get it open when you want to open
it... (Indeed, a previous owner seems to have broken the handle from
tugging it open, as we have a clearly non-standard handle on the
pantry door, now.)

Pete Masterson
'95 Blue Bird Wanderlodge WBDA 42
aeonix1@...
On the road at Lockhart Texas where it's cold and rainy! Record
breaking 89 degrees last Wednesday, now about 46 degrees.



On Nov 24, 2007, at 7:06 PM, Tom McCarthy wrote:

> Pete,
>
> I have installed cabinet latches on each refrigerator door to assist
> in keeping the closed. So far, no real hard stop problems. I also
> place spring-loaded bars across each shelf to stop the items from
> moving off the shelves.
>
> What I really had a problem with was the pantry door opening on left
> turns. I instaslled a push latch that locks it shut while in
> transit. No longer have that problem.
>
> Tom @ Shies McCarthy
> 95 PT42 WBSA EIEIO
> Poway CA
>
>
> --- In WanderlodgeForum@yahoogroups.com, Pete Masterson
> wrote:
>>
>> I'll add that I had no cracks in the tile when we got our '95. A
>> 'hard stop' opened the refrigerator, and something heavy fell out,
>> chipping one of the tiles on the surface. (An annoying cosmetic
>> issue, basically.) Learned a lesson -- I now put velcro strips
> around
>> the door handles to keep the refrigerator door from opening
>> unexpectedly -- and we open the door very carefully the first time
>> after we stop. (The home-style refrigerator does not have
>> particularly robust means of keeping it closed.)
>>
>> Pete Masterson
>> '95 Blue Bird Wanderlodge WBDA 42
>> aeonix1@...
>> On the road at Lockhart, Tx
>>
>>
>>
>> On Nov 23, 2007, at 6:33 PM, martingregg598 wrote:
>>
>>> Hi Kurt, any Ideas why the tile cracked like it did on your
> coach? Did
>>> the grout crack or the tile? On my coach no cracks, I have yet to
> drop
>>> something heavy on the tile. I have never been a big rig guy so
> I
>>> can't
>>> help but wonder when all those big front-end part ware out?
>>> Marty Gregg
>>> 95 BMC 37
>>> Kennewick WA
>>>
>>
>
>
>
>
>
> Yahoo! Groups Links
>
>
>

[Ryan Wright]

Hi Pete,

What "tax advantage"? I think you'll find that you're sending $x(6) to
the bank to avoid sending $x to the government. I've never seen a
situation where financing was in any way advantageous, except for the
rare "0% for the life of the loan" financing deals offered by
automakers struggling to move product in then it's still not a tax
advantage, but rather an interest advantage.

-Ryan

On Nov 22, 2007 3:49 PM, Peter T. Arnold wrote:
>
> I do not completely agree with "Don't finance it" Lot's of reasons in
> my life to leave the capitol invested and take the tax advantage of
> long tern financing.

[Tom McCarthy]

My pantry door has 3 original latches plus the lock I just
installed. George must have installed the extras.

Tom McCarthy
95 PT42
Poway CA


--- In WanderlodgeForum@yahoogroups.com, Pete Masterson
wrote:
>
> I solved the refrigerator door opening with a couple of
teflon 'wire
> minders' round the handles. The refrigerator also has some snap-
> latches used on many of the cabinet doors. I've seen the spring-
> loaded bars -- and now that I have the $100 gift certificate for
> Camping World, I may get a couple. The near panic stops that toss
> things around in the refrigerator are (fortunately) few and far
between.
>
> The pantry cabinet has about 6 heavy duty spring loaded snap
catches.
> It's actually kind of difficult to get it open when you want to
open
> it... (Indeed, a previous owner seems to have broken the handle
from
> tugging it open, as we have a clearly non-standard handle on the
> pantry door, now.)
>
> Pete Masterson
> '95 Blue Bird Wanderlodge WBDA 42
> aeonix1@...
> On the road at Lockhart Texas where it's cold and rainy! Record
> breaking 89 degrees last Wednesday, now about 46 degrees.
>
>
>
> On Nov 24, 2007, at 7:06 PM, Tom McCarthy wrote:
>
> > Pete,
> >
> > I have installed cabinet latches on each refrigerator door to
assist
> > in keeping the closed. So far, no real hard stop problems. I
also
> > place spring-loaded bars across each shelf to stop the items from
> > moving off the shelves.
> >
> > What I really had a problem with was the pantry door opening on
left
> > turns. I instaslled a push latch that locks it shut while in
> > transit. No longer have that problem.
> >
> > Tom @ Shies McCarthy
> > 95 PT42 WBSA EIEIO
> > Poway CA
> >
> >
> > --- In WanderlodgeForum@yahoogroups.com, Pete Masterson
> > wrote:
> >>
> >> I'll add that I had no cracks in the tile when we got our '95. A
> >> 'hard stop' opened the refrigerator, and something heavy fell
out,
> >> chipping one of the tiles on the surface. (An annoying cosmetic
> >> issue, basically.) Learned a lesson -- I now put velcro strips
> > around
> >> the door handles to keep the refrigerator door from opening
> >> unexpectedly -- and we open the door very carefully the first
time
> >> after we stop. (The home-style refrigerator does not have
> >> particularly robust means of keeping it closed.)
> >>
> >> Pete Masterson
> >> '95 Blue Bird Wanderlodge WBDA 42
> >> aeonix1@
> >> On the road at Lockhart, Tx
> >>
> >>
> >>
> >> On Nov 23, 2007, at 6:33 PM, martingregg598 wrote:
> >>
> >>> Hi Kurt, any Ideas why the tile cracked like it did on your
> > coach? Did
> >>> the grout crack or the tile? On my coach no cracks, I have yet
to
> > drop
> >>> something heavy on the tile. I have never been a big rig guy so
> > I
> >>> can't
> >>> help but wonder when all those big front-end part ware out?
> >>> Marty Gregg
> >>> 95 BMC 37
> >>> Kennewick WA
> >>>
> >>
> >
> >
> >
> >
> >
> > Yahoo! Groups Links
> >
> >
> >
>

[Ryan Wright]

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

[bubblerboy64]

I am no tax accountant or am I particularly skilled with money. That
being said I think the point we might be missing is that moat people
finance things they can't afford. To do this with an expensive
depreciating asset like a MH could put a person on a very slippery
slope. Although they can be deducted as second homes in some
situations I would not over extend myself to buy one. A vacation
home which hopefully (?) would appreciate in value I would consider
financing. I think they are worlds apart. Just my opinion but I
would suggest it is likely the prevailing wisdom. Best advice I
received before purchasing my BB was to factor in significant amounts
for repairs and improvements. I have the bus and the repairs paid
for now I need to start a "saving for fuel account". Not complaining
either. Having been on the highways over the holidays fuel must not
be too expensive as yet?
John Heckman
central Pa
1973 FC













>
> 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
>

[Gregory OConnor]

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
>

[Jon]

--- 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

[bubblerboy64]

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, "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
>

[Dorn Hetzel]

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,
> "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
> >
>
>
>


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