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re: Mississippi State to Require Personal Finance/Dave Ramsey of all athletes
Posted on 6/10/15 at 12:45 pm to anc
Posted on 6/10/15 at 12:45 pm to anc
quote:
that they can make debt a slave instead of a master. You can get a 2% or less loan on a car at virtually any credit union - and invest the money and make 8-12%, compounded on a $20,000 car vs. paying cash, you are paying $1,033 in interest vs. making $9,300 by investing the $20k with even an 8% return
Very few individuals can currently earn that rate of return. Banks pay zero on savings, etc.
What investments are making that return?
Income is taxed, but car interest is not deductible. So you would not net that much.
For most people debt is bad, especially credit card debt with high interest rates.
This post was edited on 6/10/15 at 12:46 pm
3
Posted on 6/10/15 at 12:47 pm to allin2010
quote:
What investments are making that return?
Posted on 6/10/15 at 1:15 pm to allin2010
quote:
Very few individuals can currently earn that rate of return. Banks pay zero on savings, etc.
What investments are making that return?
Income is taxed, but car interest is not deductible. So you would not net that much.
For most people debt is bad, especially credit card debt with high interest rates.
8% long term is very attainable - you just have to be willing to learn a little. I've had years that I have made 24%, I've had years that I lost 10%. Over the long term, I've averaged about 9.3%, so its definitely possible.
Posted on 6/10/15 at 1:35 pm to allin2010
quote:
What investments are making that return?
If you can't average an 8% return over the long term, you suck at investing, seriously.
A fricking S&P index fund will do over 8%.
I have mutual funds that have averaged 12-15% over 70+ years.
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