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What if he was borrowing against an airplane and investing in a treadmill company?
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Apr 13, 2018 16:40
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Dwight Eisenhower posted:Once you've fully paid off the loan, the investment will be worth $5470.26. If you never took it in the first place, it would be worth 5567.44. That particular nugget of financial literacy is worth $97.18. The issue here is you are still not accounting for how the borrowings loan are being paid for. Either this person has to use principal from his 3% loan to pay off the principal/interest payment from the 4% loan. Thus at the end of period 1 he will only have $4,865 growing at 3% (5000+12.5-147.62). Or he has a separate stash of $5,314 he is using to pay off his 4% loan and not investing for some reason.
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Apr 13, 2018 16:47
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22 Eargesplitten posted:What if he was borrowing against an airplane and investing in a treadmill company? GWM. Planes are the horses of the transportation world, and exercice equipment / cloth dryers are always in demand.
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Apr 13, 2018 16:47
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Primetime posted:The issue here is you are still not accounting for how the borrowings loan are being paid for. Either this person has to use principal from his 3% loan to pay off the principal/interest payment from the 4% loan. Thus at the end of period 1 he will only have $4,865 growing at 3% (5000+12.5-147.62). Yes I am. The model I'm using compares injecting $147.62 each month into either a (Loan + Investment) system or a simple (Investment) system for 36 months.
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Apr 13, 2018 17:06
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Dwight Eisenhower posted:Yes I am. The model I'm using compares injecting $147.62 each month into either a (Loan + Investment) system or a simple (Investment) system for 36 months. Right, but in column D his investment keeps compounding. Except you also show a monthly payment of ~$148. How is the person paying for this ~$148? Either you have to take the money out of the investment which would lower his compounding interest going forward. Or he has more cash elsewhere he is using to pay for this which makes even less sense.
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Apr 13, 2018 17:32
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Man, this is some "what color is the dress" poo poo but the conversation started as "the dress is made of poop, look at the gross poop dress"
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Apr 13, 2018 17:33
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Are you retarded? Maybe you should look at a calander, I didn't double count sunday, my two weeks started and ended on sunday, exactly 14 days. What don't you understand? EDIT - Here is a Calender, I made little dots for each day so you could comprehend
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Apr 13, 2018 17:35
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Dillbag posted:Are you retarded? I work out every other day for 2 weeks and get 10 workouts in
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Apr 13, 2018 17:36
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Dwight Eisenhower posted:(Here is my work: https://docs.google.com/spreadsheets/d/1is33tysfkvtid2leF-b0kQfEGyeVJAMjtJkTaWoTQ9c/edit#gid=0) Take a look your spreadsheet, line 11: you're paying $12.69 in interest but earning $12.78. My entire post was basically: every spreadsheet will have this crossover, so long as you're paying principal each month. So thanks for the example demonstrating my point. Edit: basically, the dude was like, "this weird thing happens" and I'm pointing out it's not a "weird thing," as it will literally always happen. oRenj9 fucked around with this message at 17:54 on Apr 13, 2018 |
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Apr 13, 2018 17:38
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I know it's been 382 pages, but holy poo poo there's a lot of people who can't money
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Apr 13, 2018 17:47
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OMG can we please just debate whether 100k is rich.
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Apr 13, 2018 18:02
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Krispy Wafer posted:OMG can we please just debate whether 100k is rich. What’s there to debate? Facts are facts.
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Apr 13, 2018 18:06
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Dustoph posted:What’s there to debate? Facts are facts. Denomination. 100k dollars, bitcoins, avocados or bridesmaids dresses. 100k bitcoins = guillotine. 100k avocados = cool. 100k bridesmaids dresses = mass murder/suicide. 100k dollars = Corvette then guillotine. Dwight Eisenhower posted:What we're arguing is that taking out the loan is stupid, because if you just put the money you would put into loan payments into the investment directly, you'd end up better. Oh, we aren't arguing this either; it's definitely stupid. oRenj9 fucked around with this message at 18:13 on Apr 13, 2018 |
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Apr 13, 2018 18:11
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Primetime posted:Right, but in column D his investment keeps compounding. Except you also show a monthly payment of ~$148. How is the person paying for this ~$148? me posted:if you find yourself with an investment vehicle which returns 3% per annum, $5000 of credit available to you at 4% per annum, and a source of cash flow to service the payments on the $5000 loan to pay it off in three years If you have net 0 balance at least ~$148 in disposable income you can choose to do two things with that situation, take the $5000 loan or just plow the $148 into the investment vehicle oRenj9 posted:Take a look your spreadsheet, line 11: you're paying $12.69 in interest but earning $12.78. Yes, I'm not arguing about that. Eventually the amortization and compounding effects do turn a profit. It happens in the 10th month in this case. What we're arguing is that taking out the loan is stupid, because if you just put the money you would put into loan payments into the investment directly, you'd end up better. On line 11, you earn $3.64 more in that month without a loan. The net balance of your accounts is $37.15 better without a loan. Dwight Eisenhower fucked around with this message at 18:22 on Apr 13, 2018 |
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Apr 13, 2018 18:11
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oRenj9 posted:Take a look your spreadsheet, line 11: you're paying $12.69 in interest but earning $12.78.
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Apr 13, 2018 18:13
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Would you rather live in a 1 BD apartment with two kids, making $100k, or a 3BD house with two kids, making $50k Your housing is free
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Apr 13, 2018 18:16
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GoGoGadgetChris posted:Would you rather live in a 1 BD apartment with two kids, making $100k, or a 3BD house with two kids, making $50k
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Apr 13, 2018 18:18
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Splicer posted:Are they my kids? Yeah you gotta take care of em. You can bring your spouse too if you want! Make any assumptions you must in order to choose.
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Apr 13, 2018 18:19
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what would you rather fight, one zaurg-sized Slow Motion, or 10 Slow Motion sized zaurgs?
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Apr 13, 2018 18:21
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Three kids and no money or no kids and three money?
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Apr 13, 2018 18:21
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22 Eargesplitten posted:What if he was borrowing against an airplane and investing in a treadmill company? The idea would both take off and not take off.
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Apr 13, 2018 18:21
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Dwight Eisenhower posted:what would you rather fight, one zaurg-sized Slow Motion, or 10 Slow Motion sized zaurgs? I like how Slow Motion is now a "what". Would you rather fight a lady-sized tiny brontosaurus or a Tiny Brontosaurus-sized lady? oRenj9 fucked around with this message at 18:29 on Apr 13, 2018 |
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Apr 13, 2018 18:24
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I started reading his thread from the beginning after it was linked in the Zaurg thread. I’ve still got it bookmarked and I’m going through it slowly. Instead of bitcoins it was drugs and 401(k) loans. The only reason it wasn’t worse than Zaurg’s is there were no kids involved.
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Apr 13, 2018 18:30
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GoGoGadgetChris posted:Yeah you gotta take care of em. You can bring your spouse too if you want! Make any assumptions you must in order to choose.
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Apr 13, 2018 18:32
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oRenj9 posted:I like how Slow Motion is now a "what". 
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Apr 13, 2018 18:56
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I would rather own a lady-sized brontosaurus as a pet. To clarify I’m talking about owning a dinosaur.
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Apr 13, 2018 18:59
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If you want to own tiny dinosaurs, get some chickens.
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Apr 13, 2018 19:05
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gently caress that, chickens are assholes and messy. Also really stupid and get themselves killed constantly. I’d rather own an adorable herbivore that’s big enough no Fox/coyote is going to gently caress with it.
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Apr 13, 2018 19:10
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22 Eargesplitten posted:gently caress that, chickens are assholes and messy. Also really stupid and get themselves killed constantly. I’d rather own an adorable herbivore that’s big enough no Fox/coyote is going to gently caress with it. Capybara?
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Apr 13, 2018 19:12
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Enchanted Hat posted:I know it's been 382 pages, but holy poo poo there's a lot of people who can't money I wish this fit as the title. My eyes have glossed over reading about that investment scheme, but wouldn't they lose out up front due to loan fees, etc?
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Apr 13, 2018 19:13
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Olive Branch posted:The difference is Tiny Brontosaurus was a good poster and Zaurg and Slow Motion are Define "good".
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Apr 13, 2018 19:15
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22 Eargesplitten posted:I started reading his thread from the beginning after it was linked in the Zaurg thread. I’ve still got it bookmarked and I’m going through it slowly. Instead of bitcoins it was drugs and 401(k) loans. The only reason it wasn’t worse than Zaurg’s is there were no kids involved. he got a vasectomy, too. very ethical
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Apr 13, 2018 19:28
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Moneyball posted:I wish this fit as the title. Now you're just baiting people to start discussing it again  Even if there is no risk, no fees, no relevant factors whatsoever other than the rates 3% and 4%, it will always be worse to borrow at 4% to invest at 3% than it is to not borrow at 4% to invest at 3%.
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Apr 13, 2018 19:39
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But the loan balance goes DOWN and the investment balance goes UP
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Apr 13, 2018 19:42
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22 Eargesplitten posted:gently caress that, chickens are assholes and messy. Also really stupid and get themselves killed constantly. I’d rather own an adorable herbivore that’s big enough no Fox/coyote is going to gently caress with it. You think dinosaurs were kind and hygienic? When not crammed in battery farms, chickens naturally spend more time bathing, grooming, and preening than an Instagram influencer (or whatever kids are calling themselves these days  )
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Apr 13, 2018 19:52
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Enfys posted:You think dinosaurs were kind and hygienic? I pay someone else to bathe, groom, and preen me so I can spend that time earning $$$$$$$$$$
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Apr 13, 2018 19:58
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Enfys posted:You think dinosaurs were kind and hygienic? You can housebreak a lizard, you can’t housebreak a chicken. Hopefully you could do the same with a brontosaurus. And as an herbivore it would hopefully be less likely to want to see if other animals and your fingers are food. And it sucked enough having foxes killing our farm chickens, losing a pet would be even worse. We ended up leaving our sheepdog out with the chickens whenever we let them out of their run. He probably wouldn’t have known what to do with an attacking fox, but the foxes didn’t know that. A brontosaurus would also be way more adorable than a chicken, which is what matters.
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Apr 13, 2018 20:20
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Where is the $100k bridesmaid dress saga? I saw the title change and came running. Wedding BWM drama is always the best.
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Apr 13, 2018 20:20
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I'm about to start trying my hands at stock.quote:I am almost 34 years old. I am doing alright financially. I could probably save a lot more! But... I am starting to getting a bit worried about long-term. Especially the retirement part. some other poster posted:You know IRA's are generally invested in stocks right? The only difference is it saves you a lot on taxes...so it's basically way better than a taxable brokerage. As an aside buying individual stocks is generally not the way to go for your average investor. OP posted:Yes I am aware of that. The problem is, if IRA is so effective then why aren't everybody rich?
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Apr 13, 2018 20:28
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Sorry, I had to
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Apr 13, 2018 20:29
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