Okay, weird question and hence the poll. I have wondered about this general topic over the years, understanding that there is no “one size fits all” answer (I’m not obtuse...usually). But here is the essence of the question I am sure you all have contemplated at one point or another...how much can I “responsibly” spend on a passion, a toy purchase? People don’t usually talk about their financial situation with anyone except close friends, and even then we hedge and act coy, embarrassed ... So...here are the assumptions: an F12tdf, my dream “holy grail” car...more so than an F40, Enzo, F50,etc.... Let’s say with taxes it sets me back $900K. Also assume I have zero debt, have all the other “things” in life I enjoy (cars, boats, homes, eduction for kids in separate trust accounts, etc.) already paid for... How much money in liquid investments would be “sufficient” for you to say, “Dude, you have enough money in the bank, you worked hard, life is short, go for it and no guilt!” (I should say I am extremely conservative with my financials, very safety minded....) More $ than?......see poll.
Okay I screwed up the poll somehow...I meant for the poll to then have: > 5M > 10M > 20M > 30M > 50M (Damn iPad posting screws things up...and now can’t change the thread....ahhhhhhhh) Perhaps a Mod would be so kind as to add those poll responses in?
Dude, I say go for it. No need to correct the poll because ultimately it's about how you feel. You're fiscally responsible and all your ducks are in a row. You've done the back-of-the-envelope calculations and with TDF prices softening I'm presuming it looks like a reasonable purchase. I'm guessing you wouldn't be asking the question if it weren't for something other than finances giving you pause. You've worked hard. Everything is in order, financially speaking. Life, as you well stated, is unpredictable and, tragically, sometimes short. You want the TDF? You can afford the TDF? Get the TDF. Oh, and please post pics. Cheers
All your stuff is probably depreciating or will be. Make sure you have hard cash and gold. I wouldn't feel comfortable buying any toys unless I had at least 3 years of personal savings locked in. Cash is a horrible hold when the fed is creating billions in new currency with no end is sight. Cash is depreciating. Be careful assuming your retirement acct is safe. Is it in the market? If it is, what if that completely reverses? Had the fed not gone bonkers in the last 90 days making new money what would have happened to the market? Diversify like never before. Are you income sources dependent on your labor or are they passive? Are your income sources dependent on selling/ servicing the top 5%? (if yes, be very careful. If there is a reset like many are predicting its the top 5% who will see the greatest change to their lifestyles) Are your assets protected via Nevada Spendthrift trusts? Do you have any exposure anywhere? Be uber critical of where you may be weak and fix it....then get the TDF (or whatever).
Your posts on the world is ending are always amusing to me. Like reading CNBC website. Take a deep breath. You still living in Puerto Rico? However, I will agree US is becoming a crazy place due to some very radical people. Let's hope the sane survive.
All great ideas, but nothing beats lowering your overhead. I have seen high overhead take down more individuals and companies than anything else. Lean and mean is the way to go, except when it comes to cars. Sent from my iPhone using FerrariChat
Depends on your age, health and budget. This is unique to everyone. If the cost can be cleared and you still have positive cash flow then get the car. Dreams are important especially in 2020.
I assure you that I hope I am wrong. I hate the idea that things would so radically change for so many. With that said, Google 'reverse wealth effect'. Hasn't the last 90 days shown that potential? 90 days ago everything was different. 90 days from now why wouldn't there be similar distinct change? There will be. Who could have predicted just 90 days ago all the things that have happened? With that said, what is the downside for preparing for the worst (all the while hoping for the best)? Zilch. Moving forward, there have always been more fortunes made (like big ones) during times of change. Bigger the change the greater the opportunities provided you are frosty and have the powder. So, hope for the best and be prepared for the worst. Simple, no? Asking questions about what your net worth should be to buy (cash) a million-dollar car really isn't that simple. Yes, 10 million in true net worth makes sense. TRUE net worth. Assets minus liabilities. Not the value of your business if all the stars were to align. True net worth. Of course, risk tolerance is an amazingly personal thing with unlimited variables. I am 50 and act in a different manner vs when I was 30. etc etc. Personally, I am not doing jack until this time next year. WAY too many unpredictable things going on at present. AND speaking of CNBC: https://www.cnbc.com/2020/06/12/feds-economic-forecasts-are-all-over-the-map-a-sign-of-how-uncertain-these-times-are.html
When I see a comment such as yours I am always reminded by a quote from Warren Buffett: "Don't bet against the United States it's been a BAD BET SINCE 1776!!"
I am probably in the poorest 10 percent on this site But I have extremely low overhead and am mostly liquid. Modest house no boats private school vacations or vacation homes. Cheap clothes dont eat out etc. Time with friends and family is priority. cars are only vice. Wife on board. I let my car holdings go to 25 percent of net worth. then i get sweaty work my ass off and drop that number down to 15. then reset. NW grows. This has worked for me. You sound like you are ready.
You guys must love your spreadsheets! If that was my dream car, I’d buy it when I could afford the monthly payments...drive it and enjoy life. Next!!!
I'd say with more then $2M one can objectively buy a $1M car - there's still $1M remaining, and that's enough as a cushion to face unexpected situations. What one should avoid is to risk a situation where a big asset must be sold, because then the sale is likely to happen in bad conditions. Of course some may need more than $1M to feel safe, but I'm not in the same world as they are
If you can write the check (or more accurately wire the $) and not really notice it, you are good to go. It should seem like a financial non event to you.
I went thru similar pre-purchase calculus. All completely out the window and forgotten after 1st drive. Do it, you won't regret it.
I don't understand your point. You already have a garage full of ferraris, you should be perfectly able to determine if you can afford another one. You sound like a guy on the edge of buying his first Ferrari and fearing to make a mistake...
Understood. Sometimes need to validate that my thinking isn’t warped into an outlier position. It is sometimes easy to talk yourself into something because your heart overrules your head, and other times the head has absurd rules and shuts down the heart.
Full of ferraris and one porsche ahah (I checked your list of car again) I didn't want to be rude I was just wondering.
