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Originally Posted by bodonx
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Originally Posted by E90potentialbuyer
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Originally Posted by bodonx
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Originally Posted by shivaswrath
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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. |
No, it's not a myth. Regardless recession or not, any long term investment will give 8-10%/yr avg.
Take the data from the last 80-90 yrs.
The key word is average. You might get +40% last year. You might get -10% this year.
Long term avg will still be 8-10%/yr including dividend. |
That's the beauty of averages. You can take whatever time period you want to make the data look good for yourself and the point that you are trying to make. So if I may, look at what stocks returned from 2000 to 2010 - hint: it was called a lost decade. This is how a lot of short sellers get wiped out - they may have the right theory but it may take much much longer than they have the ability to withstand.
Live in the fallacy of 8-9% long term growth and we will chat in a few years and see how you did. Btw, still save up because the implied inflation from your 8-9% is going to wipe out most of any nominal gains you may thought you would have!