2013 FRS 125K

[soundman98]

I need to more about this life insurance investment plan that pays out $300k in 30 years. I could sure use the money now, but waiting 30 years for it is ok too.

[karl_boss]

Originally Posted by CincyJohn

You’ll have to explain what you are talking about because this makes zero sense to me. If you have some sort of “whole life” policy that has an equity component, my personal feelings are generally they are pretty poor investments.

Well I was at the point where, I really didnt have a choice but to agree because my parents were already signing everything, But I believe I can cancel and get the amount I put into it for the past year.

[karl_boss]

Originally Posted by Flarpswitch

When I was your age I had sports cars that I could afford to buy and keep because I was the second or third owner. Some of them were from the 1950s to give you some perspective. Basic insurance and I did my own repairs and junk yards were still a resource to rely on. Then I got to buying cars that I could afford to buy, but did not give much thought into what it cost to keep it on the road. Don’t make that mistake. But, get out a pencil and paper and run the numbers. If you can make it work, do it. I will always have those memories of those MGs, Austin Healeys, Mini Coopers and all my friends from that time as we helped each other to keep them running. Coulda, woulda and shoulda is a big pile of regret 50 years from now.

Ive thought about the numbers, Ive asked questions about my coworkers payments and stuff. I believe I would be paying about 40-60% my monthly income, nothing big as I have little to no expenses. I also thought about taking a gap year after high school to just work and pay it off.

[BRZZZZZZZZZZ]

Originally Posted by karl_boss

Ive thought about the numbers, Ive asked questions about my coworkers payments and stuff. I believe I would be paying about 40-60% my monthly income, nothing big as I have little to no expenses. I also thought about taking a gap year after high school to just work and pay it off.

40-60% is insane regardless of who you are or what you make imo. I’d stick to 20% of your net pay for a monthly payments MAX. Don’t forget your insurance, maintenance (won’t just be oil changes on a 125k car) and the rising cost of fuel.

[karl_boss]

Originally Posted by BRZZZZZZZZZZ

40-60% is insane regardless of who you are or what you make imo. I’d stick to 20% of your net pay for a monthly payments MAX. Don’t forget your insurance, maintenance (won’t just be oil changes on a 125k car) and the rising cost of fuel.

If all goes well, and I save a good chunk before I turn 18, i might be able to bring that down to 30-40%, really depends on how much I put down on it. Im planning to save atleast 5k which would make the car 10k.Then during gap year, just pay it off. I believe I got it under control as long as I stay focused

[CincyJohn]

Originally Posted by karl_boss

Well I was at the point where, I really didnt have a choice but to agree because my parents were already signing everything, But I believe I can cancel and get the amount I put into it for the past year.

I’m still trying to figure out how life insurance on YOU would ever pay YOU anything - and certainly not 300k when you turn 30. You realize that generally life insurance is something you pay for every month so that someone ELSE gets paid a big benefit if/when you die (that’s called “term” life insurance). The reason why you have it AT ALL is if you are married (or I would say have kids) so that if you die, they aren’t out on the street and hopefully can go to college.

There are insurance “products” in the U.S. that wrap an investment up with life insurance (generally called “whole life”) such that you have equity in the policy - but I think they are generally a bad idea ESPECIALLY if you are young and single and should have no need for life insurance at all.

I really hope your parents haven’t convinced you to purchase life insurance on yourself that names them as beneficiaries.

[CincyJohn]

Originally Posted by soundman98

I need to more about this life insurance investment plan that pays out $300k in 30 years. I could sure use the money now, but waiting 30 years for it is ok too.

Not 30 years - when he turns 30 - sounds like about 15 years for him.

[karl_boss]

Originally Posted by CincyJohn

I’m still trying to figure out how life insurance on YOU would ever pay YOU anything - and certainly not 300k when you turn 30. You realize that generally life insurance is something you pay for every month so that someone ELSE gets paid a big benefit if/when you die (that’s called “term” life insurance). The reason why you have it AT ALL is if you are married (or I would say have kids) so that if you die, they aren’t out on the street and hopefully can go to college.

There are insurance “products” in the U.S. that wrap an investment up with life insurance (generally called “whole life”) such that you have equity in the policy - but I think they are generally a bad idea ESPECIALLY if you are young and single and should have no need for life insurance at all.

I really hope your parents haven’t convinced you to purchase life insurance on yourself that names them as beneficiaries.

I really dont know honestly, all I know is I could either withdraw it when I turn 30 or keep it and withdraw once I wanna retire.

[Arthur-A]

FWD cars suck. Stay away from them.

[radroach]

@karl_boss

I graduated high school 20 years ago and was gifted a Toyota Camry by my parents. It was cheaper on fuel, tires, and insurance than the 86 / FR-S / BRZ. I could fit more people in the 4-door car and go on road trips. I didn't have to worry about keeping it washed and waxed and wiped down all the time. It was a much easier to leave that car parked in campus parking lots for hours than my BRZ is. And it was easier to blend in when I needed to.

I wouldn't get a BRZ unless I had excess income, saved money for down payment. BRZ's are not cheap. If insurance in Canada doesn't convince you, the other maintenance and fuel costs will.

[CincyJohn]

Originally Posted by karl_boss

I really dont know honestly, all I know is I could either withdraw it when I turn 30 or keep it and withdraw once I wanna retire.

I have no idea what you are talking about but it doesn't sound like life insurance.

Put it this way, assuming a pretty decent 8% return on investment, and assuming a straight up investment with no life insurance component, you would have to invest $875 a month to have $300,000 principal after 15 years.

[saltywetman]

Also gotta put aside money for a set of winter steelies and rubber too seeing as you're in Calgary. Insurance for sure will be what kills you imo. There are slightly older guys in their 20s with longer driving experience who pay an arm and a leg for insuring their frs/BRZ.

[soundman98]

Originally Posted by karl_boss

If all goes well, and I save a good chunk before I turn 18, i might be able to bring that down to 30-40%, really depends on how much I put down on it. Im planning to save atleast 5k which would make the car 10k.Then during gap year, just pay it off. I believe I got it under control as long as I stay focused

oh, i remember those days. having everything under control, always having a plan, and thinking that plan means anything.

and then 4 months into that plan someone else blows a stop sign.

[MJones_RB]

Don't overthink it; if you like it, buy it. Deal with the problems when they come up.

When it comes to used cars, you can usually tell right away if the previous owner has taken care of it. Things like uneven paint, weird panel gaps, grungy engine bay, interior carpets that are faded, all the usual signs that the car has been neglected. you can also do a car history for mechanical maintenance records. Good luck!