Thoughts on retirement budgeting - Page 3 - Fiberglass RV


Reply
 
Thread Tools Search this Thread Display Modes
 
Old 11-21-2014, 01:46 PM   #29
Raz
Senior Member
 
Raz's Avatar
 
Name: Raz
Trailer: Trillium 2010
Vermont
Posts: 4,058
Quote:
Originally Posted by cpaharley2008 View Post
The best way to borrow is to loan your money to a bank and get the best rate and then borrow it back, there are limits on the rate they can charge you, normally not more than 1-2 points in excess of what they are paying you because there is -0- risk involved, and risk is what determines your rate of interest charged. The interesting thing happens about midway thru the term, they start paying you more than you are paying them. In the end, the cost is minimal and your money is still in the bank.
But why borrow at all if you have the cash. Better to spend your cash and make payments to yourself.
__________________

__________________
Raz is offline   Reply With Quote
Old 11-21-2014, 01:52 PM   #30
Senior Member
 
Name: Francois
Trailer: Bigfoot
British Columbia
Posts: 971
Registry
minimal ???

"minimal" is the spread....if you don't mind paying that it's ok I guess....but why?....the only reason I can think of is that when you look at your bank statement it "looks" like you still have the money...OR you are trying to build up a credit rating (but at retirement age that's doubtful)

I must be missing something....

I remember YEARS ago and old friend, who was old, to me in a very serious tone, making sure I was taking it all in......"The DAY you retire (he said it twice!).....will be FIVE YEARS too late."......he was impressing on me that fact that in retirement you generally spend way less money than when you were working every day (unless you want to see the world or spend all your time cruising I suppose)......he had a whole bunch of examples, humourous ones, that he had experienced first hand when he retired......it was a great monologue worthy of a comedy club

financial planners are in the business of convincing you to turn over/tie-up more of your money to/with them...they love to raise the spectre of running out of money in retirement and how awful that would be....but then, I look back on my life and realize that the best times, in hindsight, were the ones where I had little or no money.....so go figure...

unless one has "legacy issues" included in the mix of considerations (I don't) the math ain't that complicated...
Attached Thumbnails
reflex2.jpg  
__________________

__________________
Franswa is offline   Reply With Quote
Old 11-21-2014, 01:56 PM   #31
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
For every year you work past 70, you lose 2 years off your life expectancy supposedly.
__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Old 11-21-2014, 01:57 PM   #32
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
Quote:
Originally Posted by P. Raz View Post
But why borrow at all if you have the cash. Better to spend your cash and make payments to yourself.
Wrong, it is better to spend the banks money while you keep yours, this forces you to pay yourself vs voluntary repayments.
__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Old 11-21-2014, 01:58 PM   #33
Senior Member
 
Glenn Baglo's Avatar
 
Name: Glenn ( second 'n' is silent )
Trailer: 2009 Escape 17B '08 RAV4 SPORT V6
British Columbia
Posts: 4,369
Quote:
Originally Posted by cpaharley2008 View Post
For every year you work past 70, you lose 2 years off your life expectancy supposedly.
So, if you work to age 90, you'll die 40 years earlier?
__________________
What happens to the hole when the cheese is gone?
- Bertolt Brecht
Glenn Baglo is offline   Reply With Quote
Old 11-21-2014, 02:27 PM   #34
Raz
Senior Member
 
Raz's Avatar
 
Name: Raz
Trailer: Trillium 2010
Vermont
Posts: 4,058
Quote:
Originally Posted by cpaharley2008 View Post
Wrong, it is better to spend the banks money while you keep yours, this forces you to pay yourself vs voluntary repayments.
I guess I'm just a dumb engineer. I don't see it.

Simple numbers. I put $100 in the bank @ 2 %, I borrow it back @ 4%. At the end of the year it cost me $2.

or

I spend my $100. I make payments to myself. At the end of the year I will have made money on what I have deposited.

What am I missing?
__________________
Raz is offline   Reply With Quote
Old 11-21-2014, 02:36 PM   #35
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
You deposit 10k and get 3% over 5 years and you borrow 10k @ 5% over 5 years.
Year 1, you receive 300 and you pay 500
year 2, your receive 309 and you pay 400
year3, your receive 319 and you pay 300
year4, your receive 327 and you pay 200
year5, your receive 337 and you pay 100
at the end you now have $11,592 and it cost you $1500- you made $92 profit.
__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Old 11-21-2014, 02:45 PM   #36
Senior Member
 
Glenn Baglo's Avatar
 
Name: Glenn ( second 'n' is silent )
Trailer: 2009 Escape 17B '08 RAV4 SPORT V6
British Columbia
Posts: 4,369
Do you think the banks realize they are being had?
What's not in the calculation is inflation.
And, of course, you have to have the $10,000 in the first place.
__________________
What happens to the hole when the cheese is gone?
- Bertolt Brecht
Glenn Baglo is offline   Reply With Quote
Old 11-21-2014, 02:50 PM   #37
Raz
Senior Member
 
Raz's Avatar
 
Name: Raz
Trailer: Trillium 2010
Vermont
Posts: 4,058
Quote:
Originally Posted by cpaharley2008 View Post
You deposit 10k and get 3% over 5 years and you borrow 10k @ 5% over 5 years.
Year 1, you receive 300 and you pay 500
year 2, your receive 309 and you pay 400
year3, your receive 319 and you pay 300
year4, your receive 327 and you pay 200
year5, your receive 337 and you pay 100
at the end you now have $11,592 and it cost you $1500- you made $92 profit.
I'm curious. Using your numbers if I use my own money and make payments to my self at 3%, how much will I have after 5 years?
__________________
Raz is offline   Reply With Quote
Old 11-21-2014, 03:24 PM   #38
Senior Member
 
Name: Francois
Trailer: Bigfoot
British Columbia
Posts: 971
Registry
Note to Carol.....

it don't take long around here....

Mount Washington Alpine Resort - Snow Tubing

__________________
Franswa is offline   Reply With Quote
Old 11-21-2014, 05:24 PM   #39
Senior Member
 
Timber Wolf's Avatar
 
Name: Tim
Trailer: '88 Scamp 16, layout 4
North Florida
Posts: 1,440
Quote:
Originally Posted by P. Raz View Post
Interest and fees.

Sometimes it is worth it. Next February, after my Scamp is paid for, I will have paid less than $75 in interest and fees. I did not want to use savings to pay cash at the time the Scamp was available and we will have used it for 9 months by the time it is paid for. I can't buy the 9 months of camping memories for $75 IMHO.
__________________
Timber Wolf is offline   Reply With Quote
Old 11-21-2014, 05:33 PM   #40
Senior Member
 
Bobbie Mayer's Avatar
 
Name: Bobbie
Trailer: 2011 Escape 15A
Washington
Posts: 3,236
Registry
Quote:
Originally Posted by P. Raz View Post
Didn't mean to be cryptic. Basing affordability on a monthly payment and not the total cost. Buying something for $1000 at $20/ mo. could end up costing a lot more than $1000. But it's only $20/mo.
Yes, that makes sense now.
__________________
Bobbie Mayer is offline   Reply With Quote
Old 11-21-2014, 05:35 PM   #41
Senior Member
 
Bobbie Mayer's Avatar
 
Name: Bobbie
Trailer: 2011 Escape 15A
Washington
Posts: 3,236
Registry
I think what's wrong with the bank idea is the spread. When the bank is paying 3% interest on a loan is usually higher than 5%.
__________________
Bobbie Mayer is offline   Reply With Quote
Old 11-21-2014, 05:38 PM   #42
Senior Member
 
cpaharley2008's Avatar
 
Name: jim
Trailer: 2016 2ndGen Escape19 Prairie Schooner pulled by 2014 Dodge Ram Hemi Sport
Pennsylvania
Posts: 6,398
Registry
They are controlled by regulatory government agencies based upon the risk involved, I believe it is 2% when fully funded, check with your local state/federal banking agency.
__________________

__________________
Jim
Never in doubt, often wrong
cpaharley2008 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Thoughts on Retirement honda03842 General Chat 65 08-19-2013 09:20 AM
Retirement Fun Lisa H. Jokes, Stories & Tall Tales 3 07-12-2009 07:02 AM
FiberglassRV and Retirement Bigfoot Mike General Chat 40 08-09-2008 11:38 AM

» Upcoming Events
No events scheduled in
the next 465 days.
» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 03:25 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.