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$$ question - what would BT do? (Page 2)
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 2013-02-06 12:38 PM in reply to: #4611275 |
Master  2802    Minnetonka, Minnesota |  Subject: RE: $$ question - what would BT do?ChrisM - 2013-02-06 11:59 AM ejshowers - 2013-02-06 7:01 AM Why setup a separate savings account and forward load it with $ when earnings on liquid assets is virtually nothing? The reason to take advantage of the 0% financing versus paying cash is to invest the money. The last 4 new cars I purchased were all financed at 0 to .9% interest rate. I used normal cash flow to make the monthly payments and kept the $40,000 or so invested in my overall portfolio earning 6% or whatever. Well.......that's what I am asking here, isn't it? No, we are talking about two different things I believe... In your post you asked where you could put money you did not want to risk: "I do not want to risk the money, is there anything that I can do with the cash while it's sitting there? Anything worth the hassle? It's not a fortune, but it's a good little chunk." Meaning is there a really safe place I can invest this money yet beat my meager savings interest rate? I am saying do not look at it that way, but rather just include that money into your overall portfolio, not as a separate piece, and invest it however it best meets your asset allocation strategy to fit your risk profile. Why do you want to keep it as a separate little pile of money put aside somewhere? |
| 2013-02-06 12:49 PM in reply to: #4611372 |
| Subject: RE: $$ question - what would BT do? ejshowers - 2013-02-06 10:38 AM ChrisM - 2013-02-06 11:59 AM ejshowers - 2013-02-06 7:01 AM Why setup a separate savings account and forward load it with $ when earnings on liquid assets is virtually nothing? The reason to take advantage of the 0% financing versus paying cash is to invest the money. The last 4 new cars I purchased were all financed at 0 to .9% interest rate. I used normal cash flow to make the monthly payments and kept the $40,000 or so invested in my overall portfolio earning 6% or whatever. Well.......that's what I am asking here, isn't it? No, we are talking about two different things I believe... In your post you asked where you could put money you did not want to risk: "I do not want to risk the money, is there anything that I can do with the cash while it's sitting there? Anything worth the hassle? It's not a fortune, but it's a good little chunk." Meaning is there a really safe place I can invest this money yet beat my meager savings interest rate? I am saying do not look at it that way, but rather just include that money into your overall portfolio, not as a separate piece, and invest it however it best meets your asset allocation strategy to fit your risk profile. Why do you want to keep it as a separate little pile of money put aside somewhere? Same question. I don't want to. that's why I asked. yours is an idea, i.e. keep it with the rest of my portfolio. Thanks for the suggestion |
| 2013-02-06 2:20 PM in reply to: #4611278 |
Pro 6838   Tejas | Subject: RE: $$ question - what would BT do? ChrisM - 2013-02-06 11:59 AM Depends on a lot of factors. Investment goals, risk exposure/tolerance, value of car, competence behind the wheel... Just thought I would throw it out to consider as you didn't provide any details. I'm about 3 months from a point where it works for me to seriously consider doing this. Not sure if I'll do it just then, but probably pay it off and drop the coverage in another six months from then. the bear - 2013-02-06 8:16 AM japarker24 - 2013-02-06 7:59 AM x2. Collision coverage protects more than just the lender.mdg2003 - 2013-02-05 2:23 PM How much would you save paying it off and dropping collision coverage? Terrible idea.......... Yes. it protects me from having to buy a new car LOL. I would never do that |
| 2013-02-06 2:23 PM in reply to: #4611569 |
| Subject: RE: $$ question - what would BT do? mdg2003 - 2013-02-06 12:20 PM ChrisM - 2013-02-06 11:59 AM Depends on a lot of factors. Investment goals, risk exposure/tolerance, value of car, competence behind the wheel... Just thought I would throw it out to consider as you didn't provide any details. I'm about 3 months from a point where it works for me to seriously consider doing this. Not sure if I'll do it just then, but probably pay it off and drop the coverage in another six months from then. the bear - 2013-02-06 8:16 AM japarker24 - 2013-02-06 7:59 AM x2. Collision coverage protects more than just the lender.mdg2003 - 2013-02-05 2:23 PM How much would you save paying it off and dropping collision coverage? Terrible idea.......... Yes. it protects me from having to buy a new car LOL. I would never do that Sorry, shouldn't laugh it off, it is a suggestion that might be appropriate for some, but if my car was totaled and it was my fault, I couldn't really afford another one without getting into payments, which is what I was avoiding in the first place) |
| 2013-02-06 2:54 PM in reply to: #4609609 |
Pro 6838 Tejas | Subject: RE: $$ question - what would BT do? In that case I'd invest the money in whatever goals you have for your portfolio! Buckle down and make payments too! You get a car and investment goals met using the bank's money. Win win. |
| 2013-02-06 2:58 PM in reply to: #4609609 |
| Subject: RE: $$ question - what would BT do? There's a mental aspect (isn't there always?) I still have that "laid off" mentality from being laid off in 2008. I like having that chunk of money as an additional cushion there, just in case....... |
| 2013-02-06 8:01 PM in reply to: #4609712 |
Pro 6520 Bellingham, WA | Subject: RE: $$ question - what would BT do? drewb8 - 2013-02-05 11:26 AM Frozen Concentrated Orange Juice futures. I have an inside tip that this years crop will be low... Just became available on NF streaming. A classic. |
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