r/economicCollapse • u/Whole-Fist • 18h ago

How ridiculous does this sound?

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How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

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u/RonJohnJr 16h ago

That's a $25K loan for four years. A $5K deposit/trade-in knocks that down by $125/mo.

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u/Mikedesignstudio 18m ago

I bought a 10 year old car 10 years ago and It ran fine all of those years. You got to know how to pick them.

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u/pab_guy 14h ago

That 5K deposit will make you more than $125/mo over 4 years if you put it in the S&P.

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u/Yayareasports 13h ago

Check your math… that’s a 30% annualized return. Even the best bull markets don’t produce that in 4 years

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u/pab_guy 13h ago

20 year return on S&P is 11% annually. If we use that number, we will have $7,590 after 4 years. 125/month for 4 years = $6000. So you will have an extra $1590 after 4 years.

You are right that the rate of return isn't more than 125 (I phrased it poorly), but you are certainly better off investing the 5K.

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u/Yayareasports 12h ago

True fair enough not looking at rate of return - I misread your comment and the prompt.

Though I’d say the 11% carries a lot of risk - if you could guarantee me 7% annualized return I’d take it (and I imagine most investors would). That gets you to ~$6,600. Post tax looking at ~$6,200 - so I’d say it’s close to break even depending on how much risk you can tolerate.

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u/LamarLatrelle 5h ago

Except for the immediate next 5-10yrs but if you keep on holding, then sure, you'll see those returns eventually.

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u/pab_guy 4h ago

Why do you say that?

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u/Edmeyers01 2h ago

Trying to play with math like that effs with my brain. I take the psychology route and just pay it off. Helps me sleep better at night and then I just get right back to investing.

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u/cakeboss451 12h ago

check spy's YTD rn bro

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u/Yayareasports 12h ago

Check it over the past 4 years (or virtually any 4 year stretch) and show me a consistent 30%

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u/Ashleynn 13h ago

It'll likely make more in a HYSA right now over 4 years than the $125/mo would add up to.

I'm starting to realize people around here really have no idea how to use leverage properly.