If you had to pick just 1 car to keep, which one would you keep? (993 vs 740i)
#106
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$12900 - 30k miles. 2008 Honda 4 cyl, no leather, base model. The exact opposite of my 740i, but boy would my wife be happy if I did this! I'd get bonus points for sure. They were more than $21k, new. Rear brake pads requiring replacing every 18K miles or so due to a crappy defect that Honda doesn't cover but life could be a lot worse when my BMW breaks down.
As far as the CPO Lexus, you may find a good deal there (they are good cars), but watch out as the "lexus" badge can be as alluring as a "BMW" one. The suggestion of a Volvo is ok, but I do not trust them. If you would wrench on your cars, an e36 M3 would could be a good choice. And based on one of our recent Mid Tenn fun runs, they'll give the 993 a run for the money. A nice one can be had for around $10k
From the sounds of it, you have a few people here who are familiar with your car. A 21,000 mile C4S is a sought after car - best to keep it in the club. Full disclosure is a great thing. Maybe the flush could be done as part of the PPI process.
#107
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Steve, some great advice here.
It costs nothing to advertise on Craigslist, Rennlist, PCA or Pelican. Put a feeler out there. You don't have to sell but you'll gain some good insight on what you can get for your cars.
It costs nothing to advertise on Craigslist, Rennlist, PCA or Pelican. Put a feeler out there. You don't have to sell but you'll gain some good insight on what you can get for your cars.
#108
Burning Brakes
#109
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Your problem is not that you need to sell assets to meet your monthly expenses...but that your monthly expenses > your monthly income. You need to balance your budget. Refinance the house - you can easily get 4.75% on a 30 year fixed right now with NO points. With no other debt and the income you claim, you will be approved easily. You can always pay more on it in the future without penalty.
Don't sell the cars without examining your monthly expenses. It is a waste of money to go skiing if you have to sell a 993 that is holding value to pay for it. Don't sell your toys without selling hers. If the process is not balanced between the two of you then there will be much resentment. Ask me how I know.
Quality of life > quality of lifestyle. You can have all the loot in the world but if you are stressing over your budget you won't live to enjoy it.
Balance the budget before anything else.
Don't sell the cars without examining your monthly expenses. It is a waste of money to go skiing if you have to sell a 993 that is holding value to pay for it. Don't sell your toys without selling hers. If the process is not balanced between the two of you then there will be much resentment. Ask me how I know.
Quality of life > quality of lifestyle. You can have all the loot in the world but if you are stressing over your budget you won't live to enjoy it.
Balance the budget before anything else.
#110
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I echo the empathy expressed by others on the board…now for some tough love.
You are in bad shape, really bad shape. You’re almost 50, have only $300k in a 401(k), house rich, car rich, watch rich and very cash poor. It really stinks that your job was downsized, yet you’re still hanging onto your toys defiantly hoping things may turn soon. Others here who say that things are not dire aren't looking 10 or more years down the road.
It’s time for you to take some very serious remedial action. First, and this is a no brainer, sell both cars and buy something suitable as a daily driver in the DC area. Since you’re a car guy, it doesn’t have to be a Corolla, but buy something that is reasonably reliable, and maybe even a little fun (a slightly used Infiniti G35 maybe?). Coalesce two cars into one that doesn’t have the “time bomb” anxiety of a 14 year-old Porsche (is the CEL on?) and a 10 year-old BMW.
Second, sell your watches. It boggles my mind that you’re sitting on $7-$10,000 worth of wrist candy yet raiding your savings every month to make ends meet.
Third, living in that house reminds me of the Texas term “big hat, no cattle.” Who cares if the house and the cars are part of your “image” – maintaining this image is contributing greatly to your financial woes. Bigger houses simply mean greater maintenance expenses and higher taxes. At the very least, refi or find some way to greatly reduce your cash burn.
DO NOT raid your 401(k) to help make ends meet, it’s one of the few things you have going for you. As others have said, you’ll get hit with early withdrawal penalties (unless you can prove excessive medical expenses in excess of 7.5% of AGI.) My impression of your lifestyle is that $300k would probably last you 5 years into retirement. Yikes.
I also wouldn’t use cash reserves to pay down your mortgage and put a HELOC on the house as an emergency reserve system. A bank can amend or even pull a HELOC easily, and if you did have an emergency, there would be nothing there to cushion the blow.
These just aren’t platitudes – I practice what I preach. But this post isn't about how much I save and invest - it's about helping you take control of your financial life.
You really need to change your frame of reference. Read Dave Ramsay’s Total Money Makeover and Stanley’s Stop Acting Rich. You can read both of them in a day and may provide some financial insight about budgeting, financial priorities and the dangers of holding onto things to maintain an image.
You can either keep doing what you’re doing and post the same quandary every year, or take serious charge of your situation, make tough choices, and be relieved that you’re doing everything in your power to right the ship. Sorry to be harsh, but I counsel a lot of friends on how to take control of their financial lives, and your situation is far from unusual. Good luck.
You are in bad shape, really bad shape. You’re almost 50, have only $300k in a 401(k), house rich, car rich, watch rich and very cash poor. It really stinks that your job was downsized, yet you’re still hanging onto your toys defiantly hoping things may turn soon. Others here who say that things are not dire aren't looking 10 or more years down the road.
It’s time for you to take some very serious remedial action. First, and this is a no brainer, sell both cars and buy something suitable as a daily driver in the DC area. Since you’re a car guy, it doesn’t have to be a Corolla, but buy something that is reasonably reliable, and maybe even a little fun (a slightly used Infiniti G35 maybe?). Coalesce two cars into one that doesn’t have the “time bomb” anxiety of a 14 year-old Porsche (is the CEL on?) and a 10 year-old BMW.
Second, sell your watches. It boggles my mind that you’re sitting on $7-$10,000 worth of wrist candy yet raiding your savings every month to make ends meet.
Third, living in that house reminds me of the Texas term “big hat, no cattle.” Who cares if the house and the cars are part of your “image” – maintaining this image is contributing greatly to your financial woes. Bigger houses simply mean greater maintenance expenses and higher taxes. At the very least, refi or find some way to greatly reduce your cash burn.
DO NOT raid your 401(k) to help make ends meet, it’s one of the few things you have going for you. As others have said, you’ll get hit with early withdrawal penalties (unless you can prove excessive medical expenses in excess of 7.5% of AGI.) My impression of your lifestyle is that $300k would probably last you 5 years into retirement. Yikes.
I also wouldn’t use cash reserves to pay down your mortgage and put a HELOC on the house as an emergency reserve system. A bank can amend or even pull a HELOC easily, and if you did have an emergency, there would be nothing there to cushion the blow.
These just aren’t platitudes – I practice what I preach. But this post isn't about how much I save and invest - it's about helping you take control of your financial life.
You really need to change your frame of reference. Read Dave Ramsay’s Total Money Makeover and Stanley’s Stop Acting Rich. You can read both of them in a day and may provide some financial insight about budgeting, financial priorities and the dangers of holding onto things to maintain an image.
You can either keep doing what you’re doing and post the same quandary every year, or take serious charge of your situation, make tough choices, and be relieved that you’re doing everything in your power to right the ship. Sorry to be harsh, but I counsel a lot of friends on how to take control of their financial lives, and your situation is far from unusual. Good luck.
Last edited by JasonF; 03-08-2010 at 08:28 PM.
#111
Track Day
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Nile,
To say that Steve has no money is DEFINITELY a bizarre statement. He is simply going through a rough patch that he WILL get through. He owns 2 high end European cars and has a beautiful home which is nearly paid off. My lease suggestion makes sense in that he will have no major repairs to worry about for the next 3 years and the outlay of cash is minimal when leasing. Not really sure why you would have trouble seeing that.
Steve,
You have tons of great advise here. Your wife sounds like she is a reasonable strong woman and I'm sure things will work out for the best fro both of you. Main thing is to stay positive.
To say that Steve has no money is DEFINITELY a bizarre statement. He is simply going through a rough patch that he WILL get through. He owns 2 high end European cars and has a beautiful home which is nearly paid off. My lease suggestion makes sense in that he will have no major repairs to worry about for the next 3 years and the outlay of cash is minimal when leasing. Not really sure why you would have trouble seeing that.
Steve,
You have tons of great advise here. Your wife sounds like she is a reasonable strong woman and I'm sure things will work out for the best fro both of you. Main thing is to stay positive.
#112
Why do I feel so left out!
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Dude,
Not really wanting to get personal - but hell - Grab a big spoon of concrete and HTFU!!!
6000 or 3800 sq feet is just insane for 2 middle aged people with only 1 Kid - and part time too!
All the STUFF that you dont want to move or sell? Its just stuff!!! As for your wifes contribution to the team - well thats your decision.
I have personally learnt the hard way about overstretching to keep my (now) ex wife "happy"..... The truth is all the shiny **** in the world will never make anyone of any worth happy.... but will make the lawyers rich. My wife is trying to take me to the cleaners - I will be lucky if i have anything other than the 993 left (and thats only because thanks to her there is now a loan against it) but I have taken the bitter pill - downsized my life, my cars and my house and my spending - and am much happier for it.
Bottom line - sell the cars and sell the house - move into something you can afford - if the wife doesnt like it - i suggest getting a new one. It is really that simple.
Life is what you make it - and judging by the posts you make similar to this one - you love the drama and the stress - its ok - some people do - Its just not for me anymore.
Sorry if it sounds harsh - but life isnt fair - Get the F*$K over it.
Simon.
Not really wanting to get personal - but hell - Grab a big spoon of concrete and HTFU!!!
6000 or 3800 sq feet is just insane for 2 middle aged people with only 1 Kid - and part time too!
All the STUFF that you dont want to move or sell? Its just stuff!!! As for your wifes contribution to the team - well thats your decision.
I have personally learnt the hard way about overstretching to keep my (now) ex wife "happy"..... The truth is all the shiny **** in the world will never make anyone of any worth happy.... but will make the lawyers rich. My wife is trying to take me to the cleaners - I will be lucky if i have anything other than the 993 left (and thats only because thanks to her there is now a loan against it) but I have taken the bitter pill - downsized my life, my cars and my house and my spending - and am much happier for it.
Bottom line - sell the cars and sell the house - move into something you can afford - if the wife doesnt like it - i suggest getting a new one. It is really that simple.
Life is what you make it - and judging by the posts you make similar to this one - you love the drama and the stress - its ok - some people do - Its just not for me anymore.
Sorry if it sounds harsh - but life isnt fair - Get the F*$K over it.
Simon.
#113
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Steve, I didn't read every single post but there is some good advice here. You sound like a good guy, you have a lot on your side and can shuffle things around if needed.
Best regards,
--Tito
Best regards,
--Tito
#114
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Dude,
Not really wanting to get personal - but hell - Grab a big spoon of concrete and HTFU!!!
6000 or 3800 sq feet is just insane for 2 middle aged people with only 1 Kid - and part time too!
All the STUFF that you dont want to move or sell? Its just stuff!!! As for your wifes contribution to the team - well thats your decision.
I have personally learnt the hard way about overstretching to keep my (now) ex wife "happy"..... The truth is all the shiny **** in the world will never make anyone of any worth happy.... but will make the lawyers rich. My wife is trying to take me to the cleaners - I will be lucky if i have anything other than the 993 left (and thats only because thanks to her there is now a loan against it) but I have taken the bitter pill - downsized my life, my cars and my house and my spending - and am much happier for it.
Bottom line - sell the cars and sell the house - move into something you can afford - if the wife doesnt like it - i suggest getting a new one. It is really that simple.
Life is what you make it - and judging by the posts you make similar to this one - you love the drama and the stress - its ok - some people do - Its just not for me anymore.
Sorry if it sounds harsh - but life isnt fair - Get the F*$K over it.
Simon.
Not really wanting to get personal - but hell - Grab a big spoon of concrete and HTFU!!!
6000 or 3800 sq feet is just insane for 2 middle aged people with only 1 Kid - and part time too!
All the STUFF that you dont want to move or sell? Its just stuff!!! As for your wifes contribution to the team - well thats your decision.
I have personally learnt the hard way about overstretching to keep my (now) ex wife "happy"..... The truth is all the shiny **** in the world will never make anyone of any worth happy.... but will make the lawyers rich. My wife is trying to take me to the cleaners - I will be lucky if i have anything other than the 993 left (and thats only because thanks to her there is now a loan against it) but I have taken the bitter pill - downsized my life, my cars and my house and my spending - and am much happier for it.
Bottom line - sell the cars and sell the house - move into something you can afford - if the wife doesnt like it - i suggest getting a new one. It is really that simple.
Life is what you make it - and judging by the posts you make similar to this one - you love the drama and the stress - its ok - some people do - Its just not for me anymore.
Sorry if it sounds harsh - but life isnt fair - Get the F*$K over it.
Simon.
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#115
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#116
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Dude,
Not really wanting to get personal - but hell - Grab a big spoon of concrete and HTFU!!!
6000 or 3800 sq feet is just insane for 2 middle aged people with only 1 Kid - and part time too!
All the STUFF that you dont want to move or sell? Its just stuff!!! As for your wifes contribution to the team - well thats your decision.
I have personally learnt the hard way about overstretching to keep my (now) ex wife "happy"..... The truth is all the shiny **** in the world will never make anyone of any worth happy.... but will make the lawyers rich. My wife is trying to take me to the cleaners - I will be lucky if i have anything other than the 993 left (and thats only because thanks to her there is now a loan against it) but I have taken the bitter pill - downsized my life, my cars and my house and my spending - and am much happier for it.
Bottom line - sell the cars and sell the house - move into something you can afford - if the wife doesnt like it - i suggest getting a new one. It is really that simple.
Life is what you make it - and judging by the posts you make similar to this one - you love the drama and the stress - its ok - some people do - Its just not for me anymore.
Sorry if it sounds harsh - but life isnt fair - Get the F*$K over it.
Simon.
Not really wanting to get personal - but hell - Grab a big spoon of concrete and HTFU!!!
6000 or 3800 sq feet is just insane for 2 middle aged people with only 1 Kid - and part time too!
All the STUFF that you dont want to move or sell? Its just stuff!!! As for your wifes contribution to the team - well thats your decision.
I have personally learnt the hard way about overstretching to keep my (now) ex wife "happy"..... The truth is all the shiny **** in the world will never make anyone of any worth happy.... but will make the lawyers rich. My wife is trying to take me to the cleaners - I will be lucky if i have anything other than the 993 left (and thats only because thanks to her there is now a loan against it) but I have taken the bitter pill - downsized my life, my cars and my house and my spending - and am much happier for it.
Bottom line - sell the cars and sell the house - move into something you can afford - if the wife doesnt like it - i suggest getting a new one. It is really that simple.
Life is what you make it - and judging by the posts you make similar to this one - you love the drama and the stress - its ok - some people do - Its just not for me anymore.
Sorry if it sounds harsh - but life isnt fair - Get the F*$K over it.
Simon.
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By the sounds of it, you've got this figured out.
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#117
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The OP is in his 40s, has a net worth well in excess of a million dollars, and is gainfully employed.
He's better off than probably 95% of all Americans, probably even more than that.
This is a balanced budget problem as DC from the Cape stated, that's really all it is IMO.
He's better off than probably 95% of all Americans, probably even more than that.
This is a balanced budget problem as DC from the Cape stated, that's really all it is IMO.
#118
Race Director
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The OP is in his 40s, has a net worth well in excess of a million dollars, and is gainfully employed.
He's better off than probably 95% of all Americans, probably even more than that.
This is a balanced budget problem as DC from the Cape stated, that's really all it is IMO.
He's better off than probably 95% of all Americans, probably even more than that.
This is a balanced budget problem as DC from the Cape stated, that's really all it is IMO.
Freeing up that additional capital will most certainly help him for the future
#119
Burning Brakes
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Call me old-fashioned, but I manage my personal finances like I manage my business: if I'm not significantly cash flow positive, there's something wrong with either the expense side of the ledger, or the income side. In this case, it's both and its time to cut back on expenses and get some liquidity until income recovers.
#120
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As someone else said, that big house is an albatross. Fortunately, we're coming in to the traditional "spring homebuying" season, so you've got that going for you. I'd sell that big place, put the cash into a safe investment that earns you a little interest (like an ING savings, etc.) and rent a place with a one car garage (for the Porsche!) until your "big break" job comes.
Then, develop a new budget based on your revised income picture and buy an income-appropriate house. Renting now also allows you the flexibility to interview and take a job anywhere in the Metro area, then buy the next house close to the new job. If you don't have kids in school, you don't need to pay Montgomery County prices. For many reasons, including the mortgage interest deduction, paying all cash for a house (again) is not the best use of cash. Other CFP types here can help you structure better ways to invest that cash. That may include several years in a row of maxing out a Roth IRA, for example.
I'd sell the BMW and get a Honda to drive around. Selling the Porsche won't help your big picture as much as changing the house picture. Is the Acura paid off? Either way, it can be parked outside. A small price to pay considering you had to sell your BMW. And yes, enough with the skiing for now.
Then, develop a new budget based on your revised income picture and buy an income-appropriate house. Renting now also allows you the flexibility to interview and take a job anywhere in the Metro area, then buy the next house close to the new job. If you don't have kids in school, you don't need to pay Montgomery County prices. For many reasons, including the mortgage interest deduction, paying all cash for a house (again) is not the best use of cash. Other CFP types here can help you structure better ways to invest that cash. That may include several years in a row of maxing out a Roth IRA, for example.
I'd sell the BMW and get a Honda to drive around. Selling the Porsche won't help your big picture as much as changing the house picture. Is the Acura paid off? Either way, it can be parked outside. A small price to pay considering you had to sell your BMW. And yes, enough with the skiing for now.
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