Over a 10 year adv...I have made right at 22% with only two bad years which lowest was 8%

Right now YTD over all I'm up 39% total ..(I daytrade a lot and this is why I have a tiger return)

I'm not going to use my cash that is making 15-25% when I can use the bank @ 2%

Not the same ......

20% of 100k is 20,000
20% of 80k is 16,000

So if your paying your self back the 20k over 5 years your losing money off your 100K which is greater than 80k



But on another note like 2ndadm said...lots of people live pay check to pay check and live off debt .
Learned a long time ago you pay your self 1st them you pay the bills

If you can't afford it "don't buy it" many think hey its just a $100 a month I can buy that but never add the other expense with that 100 which now is $200 a month

Pay your self 1st..... Before taxes 8% goes to my 401k after taxes next 5% goes to my edward jones account .....
Then the rest is for bills and what ever ...

I paid my self twice before I paid the 1st bill......so if I have a expense come up I have money for that..

I tell every young guy offshore the same thing. I have seen the make the dumb est mistakes all the time
...get the 1st pay check and 4wheeler .new truck, rims and its all a loan....

Instead of paying them for there work they pay the bank for working....

when did W get a financial calculator..... lol

a person living paycheck to paycheck with no saving has no business buyin a luxury / pleasure item such as a boat..... and the banks who lend to these people are the real issue!!!

X2 purebay

It's human nature to get what u want ASAP!! We are all guilty of it in some way.
The elephant in the room is bad lending.
Banks giving people loans that they don't need.
I can remember goin with a friend to look at a 4 wheeler back in 2007/2008..... The dealer was pushing him to finance it. Note was gonna b like 90$ a month.... For 7 years..... 0% down. And like 11% interest.
I broke down the total payments to him and it was another 1800 or so in interest.
He chose to save for 9-10 months and then paid cash.
The fact that lenders & business now finance as little as 1000$ purchases is redicilous.
I'm not a fan of credit cards; learned that lesson in college..( citibank used to set up at the student union and offer the " college" shirt and other crap if u signed up for a card) ; how this was legal ill never understand.
But anyway back to my topic, if u need a new fridge and don't have the cash that's what a credit card can purchase. Or an emergency when ur low on funds.
Credit cards are not for living above or outside your financial means.
People swipe credit cards like crazy!!
I know many people buy all their stuff on credit cards and recieve the points; that's fine as long as u pay it off each month.

When I bought Lauren's ring there was a guy in there buying a 3 ct diamond.
He had 3k on the store credit card, 5k on a visa, 5k on a MasterCard and his mama sign a loans thru thr store for the rest...... That's a true story!!!

Everyone has different circumstances and I totally understand this.
But when banks just throw money at people it's hard for many to turn away and say ; I'll wait till I can pay cash.

Here is an idea I once herd.
Save up enough money in an account/ investment so that the earnings off that money can pay for ur boat. This would b an account totally seperate from retirement. It could b a " play/ hobby fund"
That way ur money is still there and u stay very liquid for the future.

There's some excellent advice in this thread. I'm going to do some math on the scenarios W laid out to get an idea of what the difference in money will be either way versus the risk.

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Well I did some math on this subject. I will agree that after five years using the return on investment W mentioned above you will have more money taking out a loan instead of using 20k cash from the investment fund. I figured at 2% interest and 5% interest and the results are the same. I will say I still don't see the wisdom of taking out a loan versus saving the cash if you're going to pay a note outside your investments, but to each his own.

W is an anomaly to any rule. If you can get 22% return annually, then by all means use debt to purchase your boat because more than likely it will be a 100 ft yacht.

For everyone else, this return is highly unlikely and you will end up owing money on a depreciable "asset" which is actually a liability. Always try to pay cash for your toys when you can.

Somebody drank the Dave Ramsey KoolAid.

(I just paid cash for my boat :-))

I agree and it don't take an economist to figure that one out.

I'm thinking I need to hire W to handle my 401-k. Wells Fargo isn't doing nearly as well for me as what he's doing. I used the 20% rate of return W is getting as a basis for my calculations, using a normal rate would probably skew the results in a different direction.

Know him do you young man...

Nice......You keep paying cash for things and you may find yourself well off someday.

Why can't I get 15-20% annually ???? Explain that to me??? I do most of my own stock movements plus I day trade which over a year builds your annually % up

Just on LNG alone I have made over 150% returns (1-stock)
OLIT I have made 35%
ATT 35%
Bank of Am. 110%
Apa 23%

.....I make good returns for myself in one year time....

I will always use the bank @ 2%. Than my money @ 15_20%

I have a couple of his books. Wish I would have discovered him ten or fifteen years ago, I would be a lot better off now.

Nevermind.

Scott.....W is who he is and does what he does. You take care of yourself and reap the results.

I agree, and obviously what he does works for him. I put never mind because I typed out a response then I realized it wasn't worth the hassle trying to debate this stuff.

nevermind is always a good comment when it comes to "W"............

If you have 20K invested....go ahead and cash it out (pay Taxes twice) and use it .....

the banks money is just fine a cheap interest....Ask many Millionaires

Isn't there a forum for this crap?

Do you really think a millionaire is going to finance a 60k boat? The less debt you have the more willing the bank will be to loan you money for future ventures. "Cents" you don't own a business you wouldn't know. You may once Figure 8 Charters gets off the ground.

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I know several who are very wealthy (Oil money multi Millionaires) who still take loans out for rice and soybean crops at low interest

I know for a fact they will finance a 350K combine for 1-2% interest all day instead of losing out on invested money and paying a tax twice

I use the same finance guy he uses and know he just finance a 2012 Ford F250 45K against his money at 1.9% for 3 years
Reason he did this was because he was making well over 15% in his invested price (YTD)
(I WAS THERE WHEN HE DID IT)
He could of paid this cash money 100x over

I also know that when I finance something like vehicial I have enough equatity where the bank wants to give me the lowest rate

So he use 45K

45K@1.99% for 36 months will cost him 46,393.90 interest paid 1,393.92 over 3 years


45K at rate 10% invested 4500 per year
year 1-45k +4500 =49500
year 2-49500+4950=54450
year 3-54450+5445=59895

3 years @ 10% invested total 59895
3 years @ 1.99% loan 46393.90

difference of 13,501.10

Use your cash and like I said......I keep making my profit

You know more peoples personal financial business than all of the banks combined....or your just full of sh@t!!! I think everyone would agree on the later.

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Isn't there a forum for this crap?

Nope just happen to be really good friends with this one guy and sat in the same office with him last week...

Like I said...He will make 13,000 plus on 3 years invested

and only pay 1300 on interest

your cash money is only if you have zero invested and dont invest....Then you dont care about % of profit you make...

For us (the ones) who invest and watch our money grow we look at all things not just having the title to purchase from day one....

Also if you have the money to back it up why spend it at once when you can always pay if off if need be (ex lose a job or bad time)

I just made you look like a fool for wasting your cash

yes dont read it form.....You should look for it instead of reading this one

And you think some big huge millionaire is going to wait 3 years to collect $13k in interest when he could have invested it a thousand other ways and made 10x while he was sitting on the toilet taking a dump. You need to stick to playing with sheep.bhaaaaaaaaaa

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Tell you what....You give me 20K for 5 years and I will make you more money in 5 years than you will pay on a 3% loan...

after 5 years you pay me the 3% for making you money....


I can get Dividend on Stocks for 4 and 5% alone

How the hell did you suddenly become such an economist when you didn't even graduate from high school? :eek:

LMAO...I guess you would love to know......Keep drinking your tea old man and when I retire at age 55......with zero debt you will wish you had listened

Show me your high school and college diplomas and I will send you a check for 20k and pay you 6%. Do we have a deal?

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LMAO....Show me your PM from SALTY:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

This is like a train wreck now, I'm sorry I even asked a question, lol.

I will do that for you ..I will if you agree 100% to let me invest 20K of your money for 5 years and I keep 3% on total profit after 5 years invested....

Then I return your 20k plus other % after 3% which will be from 7-13%

I think the fundamental difference here is risk. I equate your investment strategy to gambling. YOU may win with your research and personal knowledge the majority of the time but I lack that knowledge and willingness to loose that game.

Unless you have a mysterious growing spurt, you will be doing the same thing at 55 that you're doing now.

You bought that Haynie because you had to. You bumped your gums so much about "what I got", and, when the pics of your boat were spread all over the i'net and people were laughin' their azzes off....you bought a Haynie.

Taking out a loan for a combine for your business is quite a bit different than taking out a loan for a boat. Most of us don't have to have a boat to work and make a living.

With a boat you can put your 5% into the investments that are making 20% a year and save the cash for the boat and avoid giving the bank 2% interest if you so choose.

It's hangin' on the wall at his dad's house. Ain't that what you said, W? :rolleyes:

Post them up and the check is in the mail.


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When I get home ill email it to you pm me your addy no need to prove it to salty is what he wants , which I will keep him begging for attention

Lmao.....sure I did...just bought a boat for the hell of it...you are really a jealous person

Thought you was coming to sc event so you could see my Guide license also

it always be like that when w give his opinion for guy with head full of rock he sure know everything bout everything

Send your diplomas to smokeshackbbqla@gmail.com
If you want to include last years tax returns to show you gains it would put me more at ease as well.

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Yep, I'm jealous alright. What's your PB trout again? How many times you been on magazine covers? You work 6 months a year....I work 12 hours a week and probably make more money. :smokin: I am one jealous mofo.

Sorry I said I wanted to buy a boat....:rolleyes:

come on guys.............."W" likely taught Obama how to forge his birth certificate.
A high school diploma is nothing for a zen master.

Always stirring up trouble. How could you possibly want a boat and ask a simple question and expect it not to turn into ******* match.


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Well I apologize, I wouldn't have said anything if I knew it would have turned out like this. Lesson learned.

Dude you sunk a boat in 2ft of water.....on anchor.....LMAO

Im sure you do.............I can tell.