Quote:
Originally Posted by NemesisX
(what is $700/month perennially invested in the market with an average return of, say, 5.0% worth 20, 30, 40 years from now at retirement had you purchased a used, economy car and kept it for many years).
|
20 313,929.42
30 622,294.95
40 1,124,589.91
Certainly, if $700 month is all you can save, then you should not be driving a M3.
However, let's say you already invest $75,000 per annum every year for the same durations and return:
20 2,802,941.21
30 5,556,204.92
40 10,040,981.38
What does that additional $8400/yr do?
20 3,116,870.63
30 6,178,499.87
40 11,165,571.29
Personally I would be quite happy to have 5.5m rather than 6.1m and have NOT driven a shitbox for 30 years of my life. Furthermore, five minutes on YouTube watching IIHS tests will convince you of the need for a newer, modern car for daily driving. The average nice car is $300-$400/mo so the actual savings of the economy car are far lower than above. Unless you're OK with your wife and kids driving in a 90s Corolla..