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Originally Posted by bodonx
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Originally Posted by shivaswrath
Quote:
Originally Posted by bodonx
Simple rule:
Do you have > $1M liquid that can generate income to cover daily living cost?
If no, then start with 3 series first
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Even if you DO, M5 is pretty steep.
Your monthly income is more important than your liquid net worth since most people finance cars - if you buy an M5 cash and have ~1M liquid with interest rates this low, probably doesn't make sense. |
Never put liquid in CD.
Stock market can easily give avg $80-100k/year from $1M. More than enough to finance/lease M5. |
Not always. People live in a myth that stocks are good for a 10% return always. We live in times of med - high volatility. Domestic Indexes have erased any gains for 2014 already and are in red for the year. Unless you know how to play vol, fixed income and options, don't assume anything.
Alternate investments are not golden either this year unless you were lucky enough (and bulge enough) to invest with mega buy side funds.