any comments on the goodness/badness of this particular lease deal?
Out Of Control!!
Joined: Sep 2004
Posts: 13,394
Likes: 6
From: San Diego
2015 S212
When you figure you are only going to earn 5 to 7 percent on 100K and then end up paying 40 per cent of your earnings in taxes there is not much left to put in your pocket each year. Tax frees are another possibility but they pay even lower. The car investment at say 6 percent is negating all you are earning on the cash. Not worth the effort. I personally stay debt free except for my business and my home mortgage of which a portion of the interest is deductable (limited by agi). I also do not believe in a purchase unless you can afford to pay cash for anything but I guess that is not in keeping with the American way of life.
A return of 5-7% given todays economy is just a sign that you are not a very aggressive investor. My scenario assumes a much greater return on the current value of my cash, especially given over 3 years.
MBWorld Fanatic!
Joined: Nov 2001
Posts: 4,260
Likes: 6
From: Philadelphia area
2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
Correct, I am a very conservatve investor. If you are being aggressive to the point of earning beyond the numbers I stated you are taking huge risks. If that suits you thats fine but not for me. seen too many people wiped out overnight shortly after bragging about their return on their capitol. I have probably been around much longer than you and have seen too much happen to aggressive investors.
