Quote:
Originally Posted by Gen
Most people see it making more sense to take a loan at 1.75% than plunk down 27 grand. I understand the idea, but debt isn't necessarily 'bad' depending on how the numbers work out. I paid cash for my house (greater ability to haggle and reduced price outweighed the benefits of mortgage interest deduction) and get small loans for my cars.
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Correct. I don't keep that kind of money sitting in savings, all of my excess money goes into investment accounts. I'm making far more than the 1.94% interest I'm paying on the 22.5k loan with 22.5k of that money in various investments. Having truely liquid assets (ie cash) is great but cash rarely "works" for people anymore. Invest it and pay minor interest.
The bad thing about doing so is depending on how it's invested it sometimes doesn't work out if you're impulsive like me and decide you want to buy a classic car 2 months after buying a BRZ :P Liquid would rock there versas dealing with selling, taxes, etc..
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-Dave
Track cars: 2013 Scion FRS, 1998 Acura Integra Type-R, 1993 Honda Civic Hatchback
DD: 2005 Acura TSX
Tow: 2022 F-450
Toys: 2001 Chevrolet Corvette Z06, 1993 Toyota MR2 Turbo, 1994 Toyota MR2 Turbo, 1991 Mitsubishi Galant VR-4
Parts: 2015 Subaru BRZ Limited, 2005 Acura TSX
Projects: 2013 Subaru BRZ Limited track car build
FS: 2004 GMC Sierra 2500 LT CCSB 8.1/Allison with 99k miles