I am done with the soul sucking idea that debt is necessary... - Page 12 - Triumph Forum: Triumph Rat Motorcycle Forums
» Main Menu

Discussion Forums
 » Twins
 » Tiger
 » General
 » RAT

Features
 » Blogs

Motorcycle.com Links

Contribute
 » Photo

Motorcycle Forums
» Insurance
» Sponsors
» Our Partners
»ATV Reviews
»Motorcycle Games

Biker Hang-Out The Biker Cafe' at the end of the Universe. C'mon in, we talk everything about motorcycles on Earth and beyond.


Sponsored by: Motorcycle Accessory Discount Superstore

Reply
 
LinkBack Thread Tools Display Modes
Old 11-04-2012, 10:01 AM   #111 (permalink)
Senior Member
SuperBike
Main Motorcycle: 2014 FZ09
 
Join Date: May 2012
Location: Indianapolis
Posts: 1,573
Well, we were not wealthy enough to buy a home with cash... in 14 months we will be! We got a good rate, we had 800+ credit scores because from the time we each got our first credit card, we made good decisions.

We borrowed 50% of what we were approved for, because a calculator and third grade math told us that we in fact could NOT afford the mortgage that they wanted to sell us. We chose differently because I learned as a child not to trust anyone that is making money off of you... ever.

We built our home 5 years ago, it is a wonderful home, and it is what we can afford. We could have easily spent 2x as much, but happiness isn't marble countertops.

A bad decision 10 years ago, can haunt you today, that is the reality of money and finance. It isn't the job loss today, it is what you DIDN'T do 10 years ago that is now leaving you with no safety net. You wouldn't be losing your home if you had not bought that boat and that fifth wheel 10 years ago when times were good, and instead paid off your debts. You'd be out of a job, but have a home and security for your kids, that is the reality of deferred gratification.

We have a 30 yr mortgage, like most people... but we decided that a debt is a debt and although the MINIMUM payment is dictated by the bank, we can afford to pay more, much more. We have cut spending everywhere... we can effectively afford to go out to eat once per week, and when I say out, I mean Mc Donalds, not Bucca.

I do have a paid in full S3, my wife did get Lasik and a breast augmentation... we do spend money on SOME things. I saved for 6 years for my first bike (after a long hiatus) 4 years ago. I have since saved and upgraded little by little every 18 months. My wifes surgeries were afforded on OT at work, and each took a full year to afford.

My car is 21 years old, my wifes "nice car" is 10 years old, we bought it when it was 8 years old... my car we have owned for 12 years.

My kids wear 80% hand me downs or consignment clothing... hey, that stuff is expensive name brands that some other idiot paid top dollar for. My kids get it for $5 or less and it is in almost new condition!

What works for us isn't for everyone, and this isn't a "I got it right and you got it all wrong" idea. However, many people think this is just flat out unattainable, that is false. There are many families who make less than $50k/yr that are debt free.

Like I said previously, I am a union worker, my expertise and my skills and my seniority will mean NOTHING if and when I lose this job. I WILL take an 80% pay cut if I go to work for another airline, that isn't a maybe, that is a certainty. I cannot just go to the company across the street and make the same, or more, than I earn now... with a union, that isn't the reality.

I know people are all hopey changey... but our country is broken and my family cannot survive on hope or change. I don't hope, I bank on certainty, I am not falling back on someone else to support me when the stuff hits the fan in my life.
__________________
2014 Blazing Orange FZ09
2011 Crystal White S3-SOLD

Last edited by Speedycaptain; 11-04-2012 at 10:09 AM.
Speedycaptain is offline   Reply With Quote Quick reply to this message
Sponsored Links
Advertisement
 
Old 11-04-2012, 11:03 AM   #112 (permalink)
Lifetime Premium
Site Supporter
Moto Grand Prix
Main Motorcycle: 2010 Rocket 3 Touring
 
Tripps's Avatar
 
Join Date: Aug 2010
Location: western NY
Posts: 2,579
Other Motorcycle: 01 TT600, 02 Sprintona
Extra Motorcycle: 80 BMW r65/sidecar
Good for you. I make at least 25% less than I used to, but my expenses are 75% less than they used to be. We had the traditional 30 year mortgage, refinanced to a 15, and paid it off in 11 or 12. I bought my truck new, it now has 252,000 miles, I will probably never own another new truck. Kids are grown and on their own, my only debt is my Rocket payment, but that's almost paid off, 2 years early. I just don't want to be part of the rat race anymore. I should have no problem living on social security, 8 or 9 more years to go.
__________________
The greatest obstacle to discovery is not ignorance -- it is the illusion of knowledge. - Daniel J Boorstin

Carpenter Racing 2010 Touring 241 hp, 185 ft lbs
Tripps is offline   Reply With Quote Quick reply to this message
Old 11-04-2012, 11:05 AM   #113 (permalink)
Lifetime Premium
Site Supporter
Moto Grand Prix
Main Motorcycle: 2010 Rocket 3 Touring
 
Tripps's Avatar
 
Join Date: Aug 2010
Location: western NY
Posts: 2,579
Other Motorcycle: 01 TT600, 02 Sprintona
Extra Motorcycle: 80 BMW r65/sidecar
Quote:
Originally Posted by 9990 View Post
So, just a thought... mortgage rates right now are at or below historic inflation. Which means you actually save money refinancing rather than paying off your mortgage.

In other words, if you took that $68k you still owe on your house and refi'd at 3% over 15 years, you could take the $68k in cash and, assuming you don't use it to light your fireplace but do something halfway decent with it, you'll make far more than 3% on it in the same intervening 15 years. And you'd end up ahead.
LOL, lot of people got in trouble with that mentality.
__________________
The greatest obstacle to discovery is not ignorance -- it is the illusion of knowledge. - Daniel J Boorstin

Carpenter Racing 2010 Touring 241 hp, 185 ft lbs
Tripps is offline   Reply With Quote Quick reply to this message
Old 11-04-2012, 11:40 AM   #114 (permalink)
Senior Member
SuperBike
Main Motorcycle: 2014 FZ09
 
Join Date: May 2012
Location: Indianapolis
Posts: 1,573
True, leveraging debt left millions of families with nothing...
__________________
2014 Blazing Orange FZ09
2011 Crystal White S3-SOLD
Speedycaptain is offline   Reply With Quote Quick reply to this message
Old 11-04-2012, 09:43 PM   #115 (permalink)
Lifetime Premium
Site Supporter
SuperSport
Main Motorcycle: '14 Bonneville
 
9990's Avatar
 
Join Date: Jul 2012
Location: Philadelphia
Posts: 988
Other Motorcycle: '14 Street Glide
Extra Motorcycle: garage not big enough
Quote:
Originally Posted by Tripps View Post
LOL, lot of people got in trouble with that mentality.
I think you may have missed the point I was making. I've seen people get in trouble by taking the $68k and spending it, but that's not what I suggested. If you use it to buy goodies & consumable goods then you're living beyond your means, and most people (myself included) agree that's a bad idea. But if you invest it in something that returns better than 3%, then you'll come out ahead, which was the suggestion. The key is having the discipline to put the same cash into something with a decent return rate.
9990 is offline   Reply With Quote Quick reply to this message
Old 11-05-2012, 05:57 AM   #116 (permalink)
Senior Member
World SuperBike
Main Motorcycle: 2005 T100
 
Sal Paradise's Avatar
 
Join Date: Mar 2008
Location: Hudson Valley , N.Y.
Posts: 2,004
Other Motorcycle: 1974 Yamaha YZ
Great that you got a promotion. Congrats, but I will skip the sermon from now on. Especially the part where you get your kids clothes in a thrift shop while you waste money on new motorcycles and boob jobs. Dad of the year!
__________________
Sal Paradise

Last edited by Sal Paradise; 11-05-2012 at 01:24 PM.
Sal Paradise is offline   Reply With Quote Quick reply to this message
Old 11-05-2012, 06:27 AM   #117 (permalink)
Lifetime Premium
Site Supporter
Moto Grand Prix
Main Motorcycle: 2010 Rocket 3 Touring
 
Tripps's Avatar
 
Join Date: Aug 2010
Location: western NY
Posts: 2,579
Other Motorcycle: 01 TT600, 02 Sprintona
Extra Motorcycle: 80 BMW r65/sidecar
Quote:
Originally Posted by 9990 View Post
I think you may have missed the point I was making. I've seen people get in trouble by taking the $68k and spending it, but that's not what I suggested. If you use it to buy goodies & consumable goods then you're living beyond your means, and most people (myself included) agree that's a bad idea. But if you invest it in something that returns better than 3%, then you'll come out ahead, which was the suggestion. The key is having the discipline to put the same cash into something with a decent return rate.
What pays a guaranteed rate of return greater than 3% now? I didn't miss your point at all. My neighbor refinanced his house and invested in the stock market in 2000 or 2001, it was going crazy, every one was making money hand over fist. Until....
__________________
The greatest obstacle to discovery is not ignorance -- it is the illusion of knowledge. - Daniel J Boorstin

Carpenter Racing 2010 Touring 241 hp, 185 ft lbs
Tripps is offline   Reply With Quote Quick reply to this message
Old 11-05-2012, 07:19 AM   #118 (permalink)
Senior Member
Moto Grand Prix
Main Motorcycle: 1995 Daytona 1200
 
SlowPocono's Avatar
 
Join Date: Jul 2006
Location: northeast Pennsylvania
Posts: 2,719
Other Motorcycle: 1979 T140E, '06 Scrambler
Extra Motorcycle: 851 Sprbk, YZF R-1, SV650
Quote:
Originally Posted by Tripps View Post
What pays a guaranteed rate of return greater than 3% now? ...

I'm interested in the answer to that one too.
__________________
When you are dead, you don't know that you are dead.
It is difficult only for the others.
It is the same when you are stupid
SlowPocono is offline   Reply With Quote Quick reply to this message
Old 11-08-2012, 07:58 AM   #119 (permalink)
Lifetime Premium
Site Supporter
SuperSport
Main Motorcycle: '14 Bonneville
 
9990's Avatar
 
Join Date: Jul 2012
Location: Philadelphia
Posts: 988
Other Motorcycle: '14 Street Glide
Extra Motorcycle: garage not big enough
Quote:
Originally Posted by Tripps View Post
What pays a guaranteed rate of return greater than 3% now? I didn't miss your point at all. My neighbor refinanced his house and invested in the stock market in 2000 or 2001, it was going crazy, every one was making money hand over fist. Until....
Nothing pays a guaranteed rate of return over 3%, but there are plenty of choices that are returning at least 4-5% in the last year and historically higher. A number of mutual funds, bonds, and quite a few stocks. The fifteen year average gain of the market in the US is typically 6-8%. No-one is going to guarantee that for you, but the beauty of the system is that the bank does guarantee to charge only 3% fixed interest on the mortgage. You get the benefit of the market improving and they don't.

If your neighbor took equity out of his house to invest when he refinanced in 2000 or 2001 then that was (IMO) a foolish thing to do. It's the choice forward with cash in hand, whether or not to pay off a mortgage early, that we're talking about.

Did your neighbor sell at the bottom, or does he still have the stocks he bought back then? If he still has them, and didn't either sell at the bottom or choose such amazingly bad companies that they all folded, then chances are he's made more than 3% compounded on them between 2000 or 2001 and now.

Last edited by 9990; 11-08-2012 at 08:25 AM.
9990 is offline   Reply With Quote Quick reply to this message
Old 11-08-2012, 08:16 AM   #120 (permalink)
Lifetime Premium
Site Supporter
SuperSport
Main Motorcycle: '14 Bonneville
 
9990's Avatar
 
Join Date: Jul 2012
Location: Philadelphia
Posts: 988
Other Motorcycle: '14 Street Glide
Extra Motorcycle: garage not big enough
A quick browse of Google's stock screener:

https://www.google.com/finance?ei=MK...#stockscreener

if we insist on a 52-week price gain of 3% or higher, and a dividend of 3% or greater, then it gives back 430 stocks:



That's 430 companies to choose from that have paid a 3% dividend, and in addition whose price has gone up by at least 3%. So you're getting your 3% back twice over. Not exactly no-name companies, either. Just on the first page I see: Aegon insurance, AT&T, Abbott Labs, American Electric Power Co., and American Greetings.

You can do the same thing with most of the big mutual fund providers.

So, not guaranteed to be above 3%, but it's likely.
9990 is offline   Reply With Quote Quick reply to this message
Sponsored Links
Advertisement
 
Reply

Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Triumph Forum: Triumph Rat Motorcycle Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
If you do not want to register, fill this field only and the name will be used as user name for your post.
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter your valid email address, that can receive an automated confirmation message. Otherwise, you won't be able to gain full access.
Email Address:

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Triumph Acknowledge debt to Brando johnny black Twins Talk 33 02-25-2010 01:28 PM
sucking it flat HeyMan Tiger Chat 3 12-18-2006 11:43 AM
Tax Debt Sale!! Wolf Daytona Deliberations 0 07-11-2005 07:15 AM
Tax Debt Sale!! Wolf Speed Triple Forum 0 07-11-2005 07:14 AM

Powered by vBadvanced CMPS v3.2.2

All times are GMT -4. The time now is 05:22 AM.



Motorcycle News, Videos and Reviews
Honda Grom Forum Harley Davidson Forum Honda 600RR Kawasaki Forum Yamaha R6 Forum Yamaha FZ-09 Forum
1199 Panigale Forum Roadglide Forum Honda CBR1000 Forum Vulcan Forum Yamaha R1 Forum Yamaha R3 Forum
Ducati Monster Forum Harley Forums Honda CBR250R Forum ZX10R Forum Star Raider Forum Yamaha Viking Forum
Suzuki GSXR Forum V-Rod Forums Honda Shadow Forum Kawasaki Motorcycle Forum Star Warrior Forum KTM Duke 390 Forum
SV650 Forum BMW S1000RR Forum Honda Fury Forum Kawasaki Versys Forum Drag Racing Forum Ducati 899 Panigale Forum
Suzuki V-Strom BMW K1600 Triumph Forum Victory Forums Sportbikes BMW NineT Forum
Volusia Forum BMW F800 Forum Triumph 675 Forum MV Agusta Forum HD Street Forum Suzuki GW250 Forum
Yamaha Motorcycles Victory Gunner Forum Honda Vultus Forum HD LiveWire Forum

Garage Plus vBulletin Plugins by Drive Thru Online, Inc.

Search Engine Optimization by vBSEO 3.6.0