What would you do if...? | FerrariChat

What would you do if...?

Discussion in 'Other Off Topic Forum' started by TheOnlyLawIsToNtGetCaught, Mar 23, 2008.

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  1. TheOnlyLawIsToNtGetCaught

    Jul 28, 2005
    73
    So you're 25 years old, single, renting, with $500000 in savings, a steady job & income. I'm curious.. what would you do?
     
  2. recoil

    recoil Formula Junior

    Sep 7, 2007
    461
    Virginia
    Full Name:
    Steve
    Probably stop renting.
     
  3. spEYEdr

    spEYEdr Formula Junior

    Feb 13, 2007
    800
    LA - City of Angels
    Rule #1: Do not get married or have kids yet. If you must get married, wait until you're at least 30 and sign a pre-nup.

    Rule #2: Make your money work for you. Now is the time to take chances -- you can make the money back again. It's much easier to take chances at age 25 than at age 55.

    Rule #3: enjoy life while you're young. People will tell you to buy a house, save for your retirement, and save for your unborn kids' college tuition. I would say to make sure you spend some of your money on yourself -- you can do all of the above and still carve out a few bucks for a 360...
     
  4. amenasce

    amenasce Three Time F1 World Champ
    Silver Subscribed

    Oct 17, 2001
    34,437
    Full Name:
    Joe Mansion
    Buy RE. Maybe in a few months ..
     
  5. the_jay

    the_jay Formula 3

    Apr 26, 2005
    1,104
    Murrieta, California
    Full Name:
    Jay
    Buy a foreclosure and a Challenge Stradale.
     
  6. SDChris

    SDChris Formula 3

    Mar 8, 2006
    1,840
    Sioux Falls, SD
    Full Name:
    Chris
    Buy a 599 from Premier, and you will still have money left over!!! :D
     
  7. TheOnlyLawIsToNtGetCaught

    Jul 28, 2005
    73
    Thanks for your replies. Buying real estate seems the most sensible thing to do for sure, yet also the least exciting. Brain says go buy RE when we hit rock bottom prices. Heart says you only live once. To challenge the brain: 500K only gets you into a tool shed in L.A and it doesn't seem like great timing to get a loan on a house either. Spend half on a 20% down payment on a house, finance a 360, have fun for a few years while sinking deeper into the muck and mire of recession (who knows how deep it'll go), eventually sell in fear of losing it all, accept losses and move on..?
     
  8. TravisJ

    TravisJ Formula Junior

    Feb 9, 2008
    628
    Austin, TX
    Full Name:
    Travis
    It really depends on the steady income. $500K [liquid] is quite a bit of money to many people but won't go far if start spending it and you are only making $60K per year.

    Buy a modest house with a 20% down payment (to avoid PMI).
    Buy a nice car that makes you smile (realizing it is an expense and not an investment).
    Invest aggressively and put your money to work for you (assuming you can earn more than the interest paid on your mortgage).
    Live below your means.
     
  9. TheOnlyLawIsToNtGetCaught

    Jul 28, 2005
    73
    Travis, that's sound advice to be sure. Investments are scary, though. Too many people going down with the ship to my liking. The steady income is well above 200K gross/yr, though.

    But guys, the question is not "what would you suggest other people do?"

    It's: "What would YOU do?"

    Disregard all contingencies and focus on what you think you'd really do given the said scenario. In my experience there are two kinds of people: those who live in the present and those who live in anticipation of the future. Who are you?
     
  10. 575Mike

    575Mike Formula 3

    Mar 11, 2004
    1,706
    Midwest
    Full Name:
    Michael
    You are still 25? You were also 25 three years ago (see your first post, July, 05) ....

     
  11. darth550

    darth550 Six Time F1 World Champ
    Lifetime Rossa

    Jul 14, 2003
    61,144
    In front of you
    Full Name:
    BCHC
    Looks like you broke your own law, dipsh*t! :rolleyes:
     
  12. 993 911

    993 911 Formula Junior

    Jan 16, 2007
    421
    Portland, OR
    Full Name:
    Jack D
    You tripled the value of your 25th year of life, excellent time management!
     
  13. jbdmd

    jbdmd Formula 3

    Sep 30, 2007
    1,147
    Phoenix
    Full Name:
    Doc Jay
    What does this have to do with 360's or 430's???

    I'll bite though....what would I do with 500k at 25 making 200k a year?

    -Likely use 200k as a nice down payment on a condo/townhouse in a cool part of town.

    -Pay down some debt.

    -Buy a nice "sporty" car...M3 or M5, Vette, Audi R8.

    -Invest the rest

    IMO 500k is not a HUGE amount of doe and I employee Physicans Assistants that make nearly 200k a year friendo.

    If this is trully YOUR situation then I would suggest you save your pennies
     
  14. achilles99

    achilles99 Karting

    Sep 26, 2004
    239
    Atlanta
    Full Name:
    LT
    I was going to call BS, but you did it with much more style!
     
  15. mksu19

    mksu19 Formula 3

    Jan 4, 2008
    1,864
    LAX / YVR / MNL
    Full Name:
    Capt. K. Banzon
    Play the market (commodities) after you put a non-qualifying deposit on a nice condo/townhouse and maybe indulge (by that I mean put a down payment or lease) in a good used 308/328/348/355 (something under $60G's). Let the rest of the cash work for you!

    REMEMBER: Having liquid asset (available at a moments notice) is still better than any "R.E. or Investments", so watch your spenditures carefully! Dont empty the well!
     
  16. PAP 348

    PAP 348 Ten Time F1 World Champ
    Lifetime Rossa Owner

    Dec 10, 2005
    100,220
    Mount Isa, Australia
    Full Name:
    Pap
    #16 PAP 348, Mar 24, 2008
    Last edited by a moderator: Sep 7, 2017
  17. mksu19

    mksu19 Formula 3

    Jan 4, 2008
    1,864
    LAX / YVR / MNL
    Full Name:
    Capt. K. Banzon
    OMG! BUSTED!? :D

    LOL! :D
     
  18. Etcetera

    Etcetera Two Time F1 World Champ
    Silver Subscribed

    Dec 7, 2003
    23,986
    Full Name:
    C6H14O5
    He need to have this as his sig:

    "Act as if."
     
  19. darth550

    darth550 Six Time F1 World Champ
    Lifetime Rossa

    Jul 14, 2003
    61,144
    In front of you
    Full Name:
    BCHC
    Well Gee, Taggert..... ;)
     
  20. Etcetera

    Etcetera Two Time F1 World Champ
    Silver Subscribed

    Dec 7, 2003
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    C6H14O5
    Three kinds of people. People that are stuck in the past...and don't age.

    I'd say screw the cash; you are Johnny Immortal and can just sit back and cruise.

    :)
     
  21. darth550

    darth550 Six Time F1 World Champ
    Lifetime Rossa

    Jul 14, 2003
    61,144
    In front of you
    Full Name:
    BCHC
    You must leave her brother.........
     
  22. Tarek K.

    Tarek K. F1 World Champ
    Rossa Subscribed

    Sep 7, 2006
    10,798
    Cairo - Egypt
    Full Name:
    Tarek K.
    #22 Tarek K., Mar 24, 2008
    Last edited by a moderator: Sep 7, 2017
    :D:D.........you just got caught.

    Your post 07/28/2005...............
    Image Unavailable, Please Login
     
  23. Tr@sos

    Tr@sos Formula Junior

    Jun 8, 2005
    938
    Nice, France
    Full Name:
    Julien Rubicondo
    Ahah . . . :D
     
  24. Buzz48317

    Buzz48317 F1 Rookie

    Dec 5, 2005
    2,862
    Shelby Twp., MI
    Full Name:
    Michael
    well, not to be the devils advocate, but I don't think that he ever said that he is 25 in this thread. He also never said that he was a renter, had a half million, or was making 200k per year. It is alluded to the fact that this is his situation. The post just asks what would you do?

    If it turns out that this guy truly is a turd just disregard this post all together
     
  25. DGS

    DGS Seven Time F1 World Champ
    Rossa Subscribed

    May 27, 2003
    71,911
    MidTN
    Full Name:
    DGS
    It's still an interesting question. The RE market is really weird -- everybody is in deeper than the reduced value, so the prices can't drop. So everyone is still trying to get the earlier prices -- even on the foreclosures.

    So RE is now priced above its value. Who wants to buy into someone else's loss?

    At least, that's how the market looks to me.
     

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