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No
"If People Concentrated on the Really Important Things in Life, There'd be a Shortage of Fishing Poles." - Doug Larson
"Peace is not the absence of turmoil but the presence of God" Jo-Ann Thomack
Actually, Yeah, they would. Borrow money from a bank at a lower interest rate than what you’re investments are making currently, and the compounded interest they will make in the future. That’s common sense regardless of how much you have invested, but makes much more sense for every dollar more you have invested.
Like I said before: If you’re not making a higher percentage of interest on your investments than the rates you can borrow at for houses, cars, and boats then you need to rethink your investment strategy, and/or find another bank to borrow from.
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When its all said and done cashing in your 401k at your age will probably cost you 30% of its value.No way I would do it.There will be tons of boats with low hours on them for sale coming up in a few months.You will be surprised in the fall what $10,000 to$15,000(sometimes even less)will buy and when taken care of will last you forever.When you get close to 60(believe me you will be there before you know it)you will be tickled to death you still have your 401k.thanks and good luck to you
"keep your blood thin,you will live longer"
one factor about borrowing is THE RISK FACTOR !! job/income/ health /divorce/lawsuit/ ect.
I say this.... Start a business of Dock inspections give it a name then file for a business license in your state. Use your IRA as a business investment (100% writable) with a payback of 100% in 5 years then never pay it back.. That's how you do that...
MY accountant said "You need to spend some money this year" to get under $300k earnings so I bought a new truck and a boat....
He said that's not what I meant YOUR COMPANY needs to spend money on the company... oooh So what do I do with the truck and boat? There's a need for dock inspectors right?
Keep the ira and just finance the boat, Rates are low and nobody in their right mind actually carries to maturity. Pay as much as you can monthly, faster you pay it off the less it will cost you.. Seems most guys on here stress pay cash or don’t buy it, great logic, cash is always the best route, but here in the real world most boats sold are FINANCED, seems there is a lot of pot calling kettle black on these forums, kind of like all these boats on here running negative prop slip numbers.. lol.
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War Eagle Blackhawk 2170 - Suzuki 150, MG Xi5
Lowrance HDS 7" & 9" - Twin Talon 12' Anchors
Bad idea.
Yep...I was told about 85 percent of boat purchases are financed. The finance/closer rep where I bought my Triton tin rig gave me that stat.
Been very fortunate not to have any debt for the last two rigs...but I'd finance all day long before I'd take the taxes and penalty hit from an IRA. I feel like as long as you meet certain financial health metrics, such as fully funding your retirement, 15 year mortgage with 20 percent down, and no other debt...then a fun/toy financed is okay at a reasonable term and interest rate, with a strong determined effort made to eliminate the debt early. The problems start when your making payments of everything you own and not saving any money. Recipe for disaster
with any little financial trauma that hits your world.
Last edited by dean c; 07-29-2018 at 02:11 PM.
A lot do, but more do not. I knew someone that sold a paid for home in 2007, and bought a new one on a 15 year note. He put all the cash from the paid for home in the market. He was in the hole for about 5 years on the deal. To think you will pay 3 to 5% and make 7 to 9% just isn't worth it IMO. A lot of "wealthy" people probably do it because they have a big retirement account and some assets but aren't very liquid. Different strokes, I just ain't borrowing money.ever. again.
You said the IRA was "extra" or "play" money correct? If that is truly 100% accurate then why in the hell would you not pull the trigger? When these "cash paying hotshots" on here do it it seams to be just fine. For someone to tell you that you are crazy or foolish for spending your "play" money the way you want to is actually a little egotistical in my eyes. If it's truly "play" money who gives a shit if it's in your checking account, under your pillow or in an IRA SPEND IT. Your not dumb, you know it's going to cost you a little to cash it in. Who cares it's money you have decided as "extra". Or you can hold on until the day you can't use it.
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