Go Back   Jeep Garage - Jeep Forum > Jeep Platform Discussion > Grand Cherokee - WK2 -

Join Jeep Garage Today
Reply
 
Thread Tools Display Modes
 
  #133  
Old 06-22-2014, 12:26 PM
Premium Member
My Jeep: 2014 5.7L WK2
 
Join Date: Nov 2010
Posts: 1,201
Thanks: 1
Thanked 22 Times in 22 Posts
Rep Power: 3131
jp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond reputejp467 has a reputation beyond repute
Re: $50k+ is a lot of money for a new vehicle...

Quote:
Originally Posted by BostonSRT8 View Post
Although everyone's financials differ, this type of advice is often given by people with mortgages, to other people with mortgages (the blind leading the blind ) not the wealthy, who are debt free and not carrying 30 year mortgages.

In other words, keeping a mortgage (debt) simply for a tax deduction is not sound financial advice. The sooner you can pay your mortgage off the better.
This type of advice comes from someone that has all their money in a bank savings account getting .5 percent interest.
__________________

__________________
Reply With Quote
  #134  
Old 06-22-2014, 12:30 PM
SW03ES's Avatar
Premium Member
My Jeep: 2014 3.6L WK2
 
Join Date: Jun 2011
Location: Gaithersburg, MD
Posts: 1,782
Thanks: 14
Thanked 45 Times in 39 Posts
Rep Power: 1303413
SW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond reputeSW03ES has a reputation beyond repute
Re: $50k+ is a lot of money for a new vehicle...

Quote:
Originally Posted by jp467 View Post
This type of advice comes from someone that doesn't have investments just a saving account getting .5 percent interest.
Absolutely. Its simple math. If I am borrowing money on my mortgage at a net cost to me of say 2.5%...and I have the money I would have spent for that house performing at say...5%...if I paid off the mortgage I am loosing that 2.5% net gain I'm getting on that money.

When you factor in that we all hope our homes will go up in value over time, and that value growth is based on the total value of the home and only 20% of that value is cash that would otherwise be mine...the potential for gain is even higher.

Remember too, if you're investing the money that you would be using to pay down/off your mortgage wisely with good returns, barring some catastrophic loss that money will be there...same as it would be if you used it to build equity in your home. Homes loose value too at times...as we've seen. Whether the money is in your home or invested...its at risk. If its a high return investment its likely at more risk there, but investing is always about balancing risk with return.

Now...if you are someone who just wants to be debt free and have savings in the bank and its not about maximizing your returns thats fine. Worked for my grandparents...my grandmother is 90 and we just had to put her in a nursing home...she had saved about $14,000 over her whole life. But she always had a roof over her head and money in the bank.
__________________

__________________
~Steve~
2014 Jeep Grand Cherokee Overland V6 4X4. Maximum Steel w/ Vesuvio Jeep Brown/Indigo Blue. Advanced Tech Pkg.
2013 Lexus GS350 AWD, Liquid Platinum w/ Flaxen. Luxury & Cold Weather Pkg
Previous Jeep: 2011 Grand Cherokee Laredo X w/Nav, QT1 & Trailer Tow
Reply With Quote
  #135  
Old 06-22-2014, 12:54 PM
Dan JGC's Avatar
Premium Member
 
Join Date: Dec 2010
Posts: 1,983
Thanks: 3
Thanked 71 Times in 58 Posts
Rep Power: 4344
Dan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond reputeDan JGC has a reputation beyond repute
Re: $50k+ is a lot of money for a new vehicle...

To chime in ... again ... it is also about how diversified your assets are. If you have a $400K home and little other in investments you are too heavy in real estate, too heavy in one asset........and too much housing for your savings rate.

The wealthy tend to pay cash because they are buying the house/condo (second, third, fourth...) as one asset in their portfolio. It is a different financial goal than buying the maximum home you can afford and paying it off over 30 years.

I just met again with a uber-high-end developer (makes Trump look small) who had a mideast client walk in and buy a just completed penthouse (easily $20M+) at one another condo building that just topped off and then bought one of his penthouses (PLUS the two floors below...making it a four level penthouse) even though they are still working on the foundation for that condo building. This guy is dropping well over $40M without blinking. The condo fees alone will be well north of $500K/year and the units may sit empty 95% of the time.

There are a lot of factors to consider when deciding to pay off a low interest mortgage (such as your age, how long you will live in the home, your overall wealth etc.) or invest the cash for a higher return.

Regardless, the GC is a good value if you are in that price and feature range for a vehicle.
__________________
||||||| 2014 Jeep Grand Cherokee Summit 4x4 V8 in Bright White Clear Coat exterior with Grand Canyon Jeep Brown interior. |||||||
Reply With Quote
  #136  
Old 06-22-2014, 02:42 PM
greenwayer's Avatar
Senior Member
My Jeep: 2005 6.4L WK
 
Join Date: Mar 2013
Location: Sunny California
Posts: 2,454
Thanks: 53
Thanked 106 Times in 93 Posts
Rep Power: 9246
greenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond reputegreenwayer has a reputation beyond repute
Re: $50k+ is a lot of money for a new vehicle...

Don't worry bud it's a natural feeling... I make more money than I count and hate buying cars. They are such a bad investment. I once paid 90k for one of my cars and lost a lot on it, but atleast someone got to enjoy it, albeit not me. However with that said if you really want it you will find yourself buying it before you know it.


Sent from my iPhone using JeepGarage
__________________
2005 Jeep Grand Cherokee 6.4L (The beast) (Fastest lifted WK) The Sparkly Build
2012 BMW X5 Turbo'ed (The b*tch)
1998 Jeep Grand Cherokee 4.0L (Ol' reliable)
Reply With Quote
The Following User Says Thank You to greenwayer For This Useful Post:
  #137  
Old 06-22-2014, 02:51 PM
AquaForester's Avatar
Member
 
Join Date: May 2011
Posts: 551
Thanks: 0
Thanked 7 Times in 4 Posts
Rep Power: 1806
AquaForester has a reputation beyond reputeAquaForester has a reputation beyond repute
Re: $50k+ is a lot of money for a new vehicle...

Quote:
Originally Posted by BostonSRT8 View Post
Although everyone's financials differ, this type of advice is often given by people with mortgages, to other people with mortgages (the blind leading the blind ) not the wealthy, who are debt free and not carrying 30 year mortgages.

In other words, keeping a mortgage (debt) simply for a tax deduction is not sound financial advice. The sooner you can pay your mortgage off the better.
That is a horrible blanket statement. With mortgages so low (3-4%) and the average return in the stock market over time to be 10-11% how is that good advice. Sorry, but most us 'regular folk' have mortgages and can't afford to buy for cash or pull many out of better investments.
__________________
Reply With Quote
  #138  
Old 06-22-2014, 03:30 PM
bill_de's Avatar
Premium Member
My Jeep: 2014 5.7L WK2
 
Join Date: Sep 2012
Posts: 6,145
Thanks: 315
Thanked 341 Times in 298 Posts
Rep Power: 1801626
bill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond reputebill_de has a reputation beyond repute
Re: $50k+ is a lot of money for a new vehicle...

Quote:
Originally Posted by Dan JGC View Post

I just met again with a uber-high-end developer (makes Trump look small) who had a mideast client walk in and buy a just completed penthouse (easily $20M+) at one another condo building that just topped off and then bought one of his penthouses (PLUS the two floors below...making it a four level penthouse) even though they are still working on the foundation for that condo building. This guy is dropping well over $40M without blinking. The condo fees alone will be well north of $500K/year and the units may sit empty 95% of the time.
I told him the deal was to be kept confidential. Now that you made it public, I'm calling the whole thing off. I'll stick with my 3 bedroom ranch and my Jeep.




__________________

__________________
If you need a shoulder to cry on ...

... pull over to the side of the road!

Reply With Quote
The Following User Says Thank You to bill_de For This Useful Post:
Reply

Thread Tools
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
WK 4" Superlift @ 50k miles RedRocker Off Road Modifications 0 11-02-2013 09:27 PM
When did a V6 Jeep Grand Cherokee become worth $50k? Srt8_hmi Grand Cherokee - WK2 - 55 02-07-2013 11:53 PM
50k service? akimball Troubleshooting/Problems 4 04-28-2012 03:03 PM
Turned 50k today! BlackedOutWK Grand Cherokee - WK 20 08-19-2011 06:33 AM
So the obnoxious $50k Stone White comes home tomorrow Jpjr Grand Cherokee - WK2 - 11 03-21-2011 11:22 AM

Powered by vBadvanced CMPS v3.2.3

All times are GMT -5. The time now is 07:41 AM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Copyright 2012 - JeepGarage.Org
The Jeep Grand Cherokee Owners Community