OK, so I finally sold one of my condo's. I didn't make as much as I initially thought I would but I made out pretty good. So once I get the check and pay off what's left of the mortgage I'll be sitting on a pretty good chunk of cash. I guess I'm just toying with a few possibilities here, but what would you do in my situation?
I've got a few different options but here are the two main ones...
1. Go all out with the, "you only live once", mentality and go out and buy that Ferrari F430 that I've been dreaming about. Or some other exotic. I mean It's one thing to have an exotic when your 65, but it's an entirely different story to have one while your still relatively young and can enjoy it.
2. Put the money away and parley it into some other investment so that I can retire at 50 like I've been planning on doing.
Like I said, I'm just toying with some ideas at the moment. I've been putting away as much as I can for the past decade now and have a pretty descent chunk saved and I'm wondering what I should do. With the cash I'll be getting from this sale I should be in reach of pretty much any exotic out there, if I chose to go crazy. Should I do the smart thing and continue with what I've started or just go buck wild and enjoy my youth? Like I said, my goal is to retire at 50. I've got it all planned out. If I can save anywhere between 3 to 5 million in cash, I can invest that entire amount, 70% fixed income and 30% equities, and earn an average annual income of $180K to $250K est., depending on the market conditions and the economy. That's without reaching into capital too. With that I'm planning on retiring and moving down to Coasta Rica, where I plan to build a house and possibly a small hotel there on the beach and live out the rest of my life in peace. With cost of living so cheap in CR I can live like a king for the remainder of my life there without any worries or stress.
So what would you do? Would you do take the smart road or the fun road? Or am I just dreaming and this is a stupid thing to think about????
__________________ Don't fight with an ignorant because he will drag you down to his own level and beat you to death with his skills.
Definitely reinvest as you cannot live out of your 430. You may also want to look into reinvesting in real estate. Maui for example you could buy and I'd guarantee you could rent the property out within 3 days of putting an add in the paper. I'd do it, but you need money to make money and I don't have that treasure chest sitting around.
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Now I'm just laid bad - G35Princess
R.I.P. MBC
Definitely reinvest as you cannot live out of your 430. You may also want to look into reinvesting in real estate. Maui for example you could buy and I'd guarantee you could rent the property out within 3 days of putting an add in the paper. I'd do it, but you need money to make money and I don't have that treasure chest sitting around.
Well, I got another condo that I'm living in so I'm not planning on living out of my F430. Also, a friend and I already have a rental property in Orlando so that's pretty much taken care of. I'd rather not invest in rental property in Hawaii as much of it is owned by Trump and I'd rather not pay through the teeth for property managers.. It's also way to steep for my blood. Last time I checked they start at $1.8million plus for anything really interesting.
__________________ Don't fight with an ignorant because he will drag you down to his own level and beat you to death with his skills.
Yeah, I'm just really doing some wishful thinking I guess. I can't get that thought out of my mind though. I keep thinking that I've been working hard for so many years, why not take advantage of it now. I mean like why wait till my ball hairs are grey. Why not just pick up a Ferrari or a Lambo and enjoy the sh1t out of it while I can. I mean I've worked as hard as the next guy and my parents didn't give me a penny. Why not enjoy it??? Or am I just off my rocker?
Eh, I thought about the new M, but if I do something I want to go exotic. Something I can really enjoy while I'm young.
__________________ Don't fight with an ignorant because he will drag you down to his own level and beat you to death with his skills.
Well, I got another condo that I'm living in so I'm not planning on living out of my F430. Also, a friend and I already have a rental property in Orlando so that's pretty much taken care of. I'd rather not invest in rental property in Hawaii as much of it is owned by Trump and I'd rather not pay through the teeth for property managers.. It's also way to steep for my blood. Last time I checked they start at $1.8million plus for anything really interesting.
1.8? WTF man, I'm talking smaller condos in the $300-$400k range. Maui's market is brutal (to rent), you can just about call any price you want.
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Now I'm just laid bad - G35Princess
R.I.P. MBC
1.8? WTF man, I'm talking smaller condos in the $300-$400k range. Maui's market is brutal (to rent), you can just about call any price you want.
Why in the world would you want to buy a rental income property in the $300 to $400k range? ROI would be lousy. You could find alternative investments that would be far more worth while.
__________________ Don't fight with an ignorant because he will drag you down to his own level and beat you to death with his skills.
Hey I don't blame ya. I like the idea of working hard play hard. But I like the idea of playing forever even better. That'd mean complete financial independence. Having to work hard for a buck when you're over the hill would be quite simply put - H E L L ! No thanks.
If it's the "wow" factor you're looking for, then anything short of the now discontinued Carrera GT will not do from Porsche @ SoCal. You know that. Your average Jane will not know the difference between a 911 from a Turbo, or a GT3. It's simply a Porsche to them. Meh! F cars certainly qualify, but man ... what a bottomless money pit that is going to be. Remember it's not about being able to afford a Ferrari, it's about being able to maintain it.
My vote would be for the baby Lambo over the 430. They are arguably more exotic looking than the 430. If you're keen, you'd look up a well preserved used Gallardo for well below 200k.
Why in the world would you want to buy a rental income property in the $300 to $400k range? ROI would be lousy. You could find alternative investments that would be far more worth while.
..............because most guys don't have the big buckos you do........plus you can roll over those smaller properties much faster than the large ones, especially on Maui.
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Now I'm just laid bad - G35Princess
R.I.P. MBC
Invest it, but spoil yourself with a small luxury.
If you are looking to invest in real estate, I can tell you of a few places I'm looking at in Texas. Texas is doing really well right now, similar to the California Boom a few years back. I can put you in touch with some people
Or, I hear the Chinese are spending top dollar for Imported Booze. e.g. Johnnie Walker, Jack Daniels, Chivas, etc. etc. I've only heard things, but the market for this stuff is booming. This is liquid gold at the moment, so if I had some cash, I'd investigate on how to import booze into China.
Lastly, treat yourself to a small vacation to remember why you work so hard. And with regards to the super hot rod, although I consider the Carrera GT the car of my dreams at the moment, there's now way I'd buy it unless I was Eli Broad's son. Get yourself something nice, or keep what you have, but don't blow your money on a car.
Hahaha. Thanks for all the advice and opinions guys. It's just what I needed. Like I stated it's an idea, however foolish it may seem, I'm toying with at the moment. When it's all said and done I'm sure I won't be taking the foolish road with this one.
And GZ, I'm by no means rich. I've just been smart about my finances. There's one critical thing I learned from a professor while I was in business school. That is, "we must all commit to finding creative means to making ourselves asset rich as opposed to just income rich". I've forgotten almost everything I learned back there, but I've never fogotten that. So I've basically tried everything I can to make that a foundation of my financial world. You should try it too, it really works. I owe everything I have, which isn't much, to that short little sentence.
On the other hand, I'm just sick of writing uncle Sam so many checks while I attempt to get there. It literally makes me sick how much tax I pay, but I guess we're all in the same boat so I won't digress into that today. I would really like to retire at 50 and live out my life with a hot chic, bottomless bottles of booze and a place I can call my kingdom. So, I guess I should do the prudent thing and be smart about the entire idea.
In either case, it was an idea I couldn't just ignore. I mean would you???
__________________ Don't fight with an ignorant because he will drag you down to his own level and beat you to death with his skills.
Hahaha. Thanks for all the advice and opinions guys. It's just what I needed. Like I stated it's an idea, however foolish it may seem, I'm toying with at the moment. When it's all said and done I'm sure I won't be taking the foolish road with this one.
And GZ, I'm by no means rich. I've just been smart about my finances. There's one critical thing I learned from a professor while I was in business school. That is, "we must all commit to finding creative means to making ourselves asset rich as opposed to just income rich". I've forgotten almost everything I learned back there, but I've never fogotten that. So I've basically tried everything I can to make that a foundation of my financial world. You should try it too, it really works. I owe everything I have, which isn't much, to that short little sentence.
On the other hand, I'm just sick of writing uncle Sam so many checks while I attempt to get there. It literally makes me sick how much tax I pay, but I guess we're all in the same boat so I won't digress into that today. I would really like to retire at 50 and live out my life with a hot chic, bottomless bottles of booze and a place I can call my kingdom. So, I guess I should do the prudent thing and be smart about the entire idea.
In either case, it was an idea I couldn't just ignore. I mean would you???
Screw the ferrari, buy an island. You'll probably want pirate insurance too.
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2008 Nissan Altima Coupe 2.5
2008 Range Rover Sport Supercharged LE
What would you do?
Kudos to you!
Your average Jane will not know the difference between a 911 from a Turbo, or a GT3. It's simply a Porsche to them. Meh! F cars certainly qualify, but man ... what a bottomless money pit that is going to be. Remember it's not about being able to afford a Ferrari, it's about being able to maintain it.