Quote:
Originally Posted by P1
Quote:
Originally Posted by jmg
You can have $80k in an ETF or if you want to be safe, bonds, which at 6% is better than -0.9%. The concept is that "free/cheap" money is opportunity to invest for a return. Paying $40k for a car then investing $40k is missing out on a $40k investment.
Also, if I "only" had $40k I would definitely not be paying cash for a $40k car. I'd finance a $20k car for pennys on the dollar and use the $40k to build wealth.
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Again, on paper, sure. But how often does his happen in reality? |
That's a separate issue. How often it actually happens is a failure of initiative and education, not an argument that it isn't a good strategy.