360 financial advise please

If you don't own a house don't buy a Ferrari.

 

My advice? Decide on your priorities and follow your best conscience. I choose to put the house, family, money for the kids' college etc. all before my first Ferrari purchase. Also real estate tends to be a better investment than cars! But only you can make the call.

 

Anyone who does anything in this world for work that enables them to get a bonus check for north of half a mill has to have the finanical smarts to figure out whether or not they can 'afford' to buy something worth barely a quarter to a 3rd of their bonus in most cases.

Also why would you buy any depreciating asset in cash, and tie up that money that could be used for used investing in appreciating assets like real estate, or mutual funds and investing, etc.

Anyone making half a million plus a year can get any bank to provide a mortage on just about any home in America, so renting a townhouse makes no sense. In fact if you went out a bought a million dollar home today and quit you job you could pay the mortgage for several years on your bonus check alone. In fact with the mortgage mess the people making that kind of money are the only people that ARE going to be getting mortgages these days.

By the same token, what bank wouldn't sell or lease a car worth a third of someone's salary to them? That's like saying if you make $75,000 you couldn't afford a $25,000 car!? Hogwash. And/or a bank wouldn't finance you on it?!

Some part of your story i dont believe...I do believe you like Ferrari's and rent a townhouse, but don't know about the rest....

If you really make that kind of money you should have no problem getting any car of your choice short of a new Murci or an Enzo, and have no problem putting the bean counts together to pay the relative pittance of maintanance on it, etc.

You sound like either a kid just out of college, or a middle age married guy whose wife is going to kick his butt if gets a Ferrari, and is trying to make excuses on 'how to afford it' when there is no question on it to begin with.

 

LOL at the original post. YIKES! Buy a car already, throw 50k down and buy a 430.

And a BIG LOL at people saying to buy a house, have kids, pay for them, save for retirement and stick a mil in a doomsday fund before buying a Ferrari. By the time you are done preparing for all life's expenses, you'll be dead or old and Ferrari's ain't no fun when you're either of those. The trick to life is to get whatever you want whenever you want it. If you are smart and motivated, you will find your way to pay for anything you dream. Thought become things. You are thinking about a Ferrari, then get it. Then think about a house or whatever you want next, then get it. Life is simple, Don't listen to the old school mindsets of having everything paid for and a gazillion in rainy day fund before getting luxuries. Life is about luxuries whether it be a Ferrari or a digital Timex... whatever makes you happy, GET IT!

Always look at the worst case scenario with anything you do in life or business. The worst case scenario is if you decide you don't want the Ferrari or somehow can't afford it (ya right, .5M bonuses lol), then sell it for a small loss and so what. I'd rather have to sell a Ferrari and be happy i owned one for whatever time than go through my life and never treat myself to what i am sure I would like. people just don't confidence in themselves these days. They worry too much with what if's.

Life is about the NOW not the future. You live in the NOW and have a reasonable level head for the future. It just doesn't happen like people (old school) think. Prepare for future, save money, pay off house, secure death fund, pay for kid's medical school for 10 yrs, stick another 2M under a mattress and then all of a sudden you are all done and just do nothing and buy a ferrari,,,,, NOT. that is not life, anyone on this board knows what they want in life and knows how to get it. And that means CONSTANTLY dreaming and achieving FOREVER. The order of what you do does not matter.

Of course, micro scales do like if you want new rims but the baby hasn't eaten in days.... you might want to get the kid a burger first.

Live life, no regrets, enjoy everything you do and never look back. EVER. Believe in yourself and you will get anything you want and in any order you choose to get it.

 

don't feel guilty abt a Ferrari. live life to its fullest. Plus, trust me you will work harder after owning a Ferrari. Focus life on how to make more money not on saving pennies.

 

Right now, given the state of the real estate market, you can probably cut some nice deals. I don't know your age (fill out your profile when you have some time), but what I can say is that a car is generally a very poor investment as compared to real estate. I think if you are on the young side, I would take your $500K+ and invest it into real estate. Keep in mind, you may owe the IRS a large potion of that bonus, so be careful with your next move. You could end up spending the money and then finding out you need to write the IRS a check for north of $250K

I think if you don't own a home or some form of real estate, buying a Ferrari would be a mistake.

Maybe you can provide a little more information regarding your financial position and age, etc.

In general, when you come into a large sum of money, if your initial impulse is to start spending, that's a red flag. $500K in the bank is still $25K a year without having to work. Myself, I would say until you are worth at least a million+ and have no debt, you probably should put owning a Ferrari on the back burner for a while.

Ray

 

I do not believe a thing you say, but if it's true, think of it like this - you did not get a 500K bonus, you got a $350K bonus and a red/tan 360 spider.

 

lol.. rough crowd today!



Ray

 

I gotta say, I don't get this one either! You seem to be smart enough to get a $500k bonus, but need my help on which to buy, a house or a car???? Dooooooohhhhh??!!! You should have enough for a substantial down payment on a house and enough money to place towards the purchase of a 360.
I can't believe I responded to this thread! LOL!

If living in a certain neighborhood and driving a certain car is all you have to live for, time to re-evaluate your life! Sorry, just the way I see it.

Good luck.


Robert

 

You need to get yourself a home and some kind of tax shelter, if you live in a condo what will be your daily driver, where will the car be kept? You need to think in the longer term, believe me I lived my life the way you are proposing until I had kids, and if I had 1/8 of the money I spent on crap (cars, bikes, diners every night out, women) my situation would be so much better now. Yeah I can say that I had Italian cars, German cars, Harleys, many women and lived my younger life to the fullest, but you do need to set yourself up for later, it gets here a hell of alot quicker than you think...

 

Where's DrS' BS card when we need it?

 

My grand mother used to say "spend some and keep some". Buying a house as your first move might not make sense. How long will you be there? Also I think real estate has some significant downside left. You can get rid of a car in a couple of hours if you need to. One of my lady friends is up to her a$$ is real estate investments and it's killing her. I can make an argument that a house is a worse investment than a car.

 

Down payment on an Enzo....

 

I just got an email from the former President of the Bank of Nigeria. Because I am helping him transfer some oil funds that belonged to him before he was ousted by a corrupt government, he is going to pay me $1 million dollars. I was wondering what I am going to do with my good fortune? As soon as I wire transfer him some money to pay off some corrupt officials, I will get my money. Oh, happy days are here!

 

that's wierd......I just got and email from a bank that's holding my late uncle's fortune in Nigeria, who knew I had an uncle that worked in the diamond mines out there??, crazy huh...... anyway, I have a few million coming my way!!!I'm so excited!!!

 

+100

He also spelled "advice" wrong.

But I'll play along...

To the OP:
* If you are still renting, then you may not have a place to keep the Ferrari.
* If your bonus is 500k+, then you probably make millions each year.
* And if you make millions, then you should probably already have the means to buy a decent home

So.. I'd like to believe you, but you make it difficult to do so.

The red flags:
* You're a new member
* You only made a few posts
* Your story doesn't seem to make sense
* Did I mention, you spelled "advice" incorrectly?

~shahedc
.

p.s. you also posted in the New England thread, suggesting that you meet up with them:
http://www.ferrarichat.com/forum/showpost.php?p=137379921&postcount=177

Are you from the New England area?

 

Re Ferrari, I reckon that if you need to ask, dont do it.

The Nigerians seem to be a bit tight with you lot, we're always in for at least £25 million.

I visited Lagos and Port Harcourt a few years ago.(no I wasnt chasing up my £25 million) Not many Ferraris but the crude is so light they run their diesel trucks on it straight from the well. Smokes a bit though. As travel destinations go, life doesnt get much more exciting.

 

Is this "500k bonus" a one time deal? Do you normally make a fraction of that? Will you ever (in your given field) ever reasonably expect to make it again? If this is a one time deal use the $ to generate some real wealth going forward. Don't just waste it on a depreciating asset. If you are expecting to make that kind of money for a while maybe it's worth waiting until you have a nest egg built up and then jump in...keep in mind...360's will be cheaper tomorrow....today's 360 is tomorrow's 430.

 

I think the original poster added a zero to his bonus check.

 

Maybe you can buy a used Fabspeed exhaust for a Porsche Turbo.....

 

Huh, what did you say? Sh*t, I can't hear anything over this drone? ;-)

 

I knew someone that said he was getting a 100k raise....oh wait, he told someone else $80k and yet another person $50K....oops...

 

Hey Kirby. Long time no talk. How's that kitchen remodel coming along? How much you putting in the remodel. Send me some pics.

 

hahahaha hmmm, $150k? $100k? damn I can't remember what I told people, hahahahaah

But don't worry, it'll look like I spent NOTHING!

where is Spiderguy when you need him?