KrazyK

Man this thread is self-destructing fast.

I agree a little with this but wow!, at least he has a job and is not on the "Obama Plan" which seems to be epidemic these days.

Have fun whatever you do but dont forget to plan for the future. JMHO but the 996 has become a DIY'ers car only, with very high maintenance costs if you cant DIY.

perfectlap

I think $35K for a family of three is considered poverty level. About ~15% of the country are at or below that level.

While I agree that in this country of so much oppourtunity to properly fund a retirement -- when you won't be able to work anymore but will still need to eat -- it is indeed a shame that people don't think about the future.

One thing you realize as you get older is how quickly time catches up to you.

I'm not sure that earning just enough to pay only your current living expenses is very wise from a long-term view. We're living in an age where spending 20-25 years in retirement is definintely feasible. If you've got to live off at least half your current income that means you'd need about $400K to avoid living off food stamps and other govt programs. No way is social security going to cover that kind of coin.
That Dave Ramsey guy wrote in one of his books about a USA Today article that the average senior could not write a check for $600... This sounds to me like a whole lot of older people are banking on the govt to help them out, without the govt having anywhere near that kind of cash. You need a plan B and would be wise to get on it as soon as you have cash to save.

KrazyK

Its worse than that. The "government has zero cash, in fact the government has about $17,000,000,000,000 debt.

To the OP, learn more about the 996 and see if your willing to tackle a project car. Fix as you can afford.

perfectlap

Actually I'm not even sure I could answer this question because I don't know you. Myself, I have a very HIGH tolerance for risk. When I was 25 I lost an astronomical sum (to me) in a single morning (best lesson on over-leveraging ever). I screamed at the brokerage person on the phone (who had no guilt in the matter). Then I said F***K it let's get some sushi. I did not repeat that mistake again even though it was told me to dozens of times before I committed it. Other people I know are not so resilient and would not have slept a wink leading up to that day or thereafter. Everyone is different. Some young people despite having a long investment horizon still have no appetite for risk. They're probably the future billionaires. who knows. But you have to know how much it will burn you to lose your entire haul of savings before you start coming up with a long-term plan.

The best you can do is sit down and list out all your expenses. All the things you absolutely can't do without or you will be miserable without. Down to every last dollar for gas and who knows what else. Then get a hold of a financial planner who is a fiduciary. Meaning they have signed an oath that they will not make any money by selling you or steering you towards certain investments. After they recover from the shock of seeing a young person visiting them and depending on your goals they'll recommend a plan. Make sure they are a fiduciary and don't buy any explanations for why they aren't. A lesson my folks learned the hard way on one of their annuity investments.

The only advice I would give you is to avoid any investments that are actively managed and come with all those misreported fees. Lean towards passive investments (like index funds), they carry the smallest cut of your annual returns and actually outperform nearly all actively managed mutual funds. I think you could count on the fingers of one hand the number mutual fund managers who beat the S&P since the 2008 crash. That crash by the way was their big test to see how smart they were at hedging, as it turned out they had to ride out the downturn just like every passive investor -- in other words their big fees to "hedge against risk" were a waste of money. And be careful to include the same "active management fee avoidance" strategy in any target date funds that have become so common place in 401K plans.

perfectlap

And will probably be $34T before long... But debt level really isn't the main problem its the rate of economic growth and our insane dependence on everything not made in this country. You can cut all the spending you want, but the population is still growing and ageing. If 50 cents or more of every consumer dollar is spent on buying an imported good rather than prioritizing the services of a currently employed U.S. worker, then there's no chance that growth can continue to outrun debt -- The skill we were so good at before China took over as manufacturer to the world.
Put it this way if for one month people made buying an imported good the last thing on their shopping list and paying for domestic help, going to a privately owned local eatery a few more times each month, going on a domestic vacation trip, hiring an out of work college student to tutor their kids, bringing in a contractor or house painter to brighten up their home, etc... an amazing thing would happen without any Democrats or Republicans having to fight over a thing. Ahhh forget it let's just all buy another Ipad and contribute financially towards another election of the people least likely to improve anything.

69gaugeman

On this we both agree.

Cuda911

OK, to hasten its demise:

At first, the OP seemed to be asking a legitimate, albeit naive, question. But, as this thread has progressed, it than apparent that the OP is either:

1) Rather ignorant (I mean that in the literal sense... "Lacking knowledge or awareness in general; uneducated or unsophisticated.");

2) Or, is just messing with the group here.

And just what job is that? Seems very "pie in the sky" to me. Maybe you have some ace up your sleeve, but if so, it has been well-hidden throughout this thread.

Here's some basic sound investing/financial advice:

1) Save at least 10% of your gross income, every single year, starting with your first paid job.

2) Put the bulk of it into a diversified index fund.

3) Don't marry some crazy broad that cleans out all of your accounts during an insane divorce proceeding.

OK, this thread has officially been flogged to death. R.I.P.

Shamus

I've lived by the general rule of thumb one should own a car that is no more than 1/3 of your gross income. This website says 10%:
http://www.financialsamurai.com/2012...e-must-follow/
which I think is too low.

Gonzo911

Time to move this thread to OT. It stopped dealing with 996's a long time ago, except for KK's usual advice to learn how to drop your engine in 5 minutes using only a Q Tip and a spatula.

To the OP, always remember...you can fix broke, but you can't fix poor.

leejo

No. Here's how it works - I bought my first 911 a few weeks ago. Since that time, I lost my wedding band and had to replace it ($500), and the plumbing in my house ate itself ($3000). You never get to buy a cool sports car in isolation - somehow, some way, the INSTANT you spend money on a nice toy for yourself, 3 things break, you get laid off, and your kid lands in the ER with a nice bill and you haven't made a dent in your high-deductible policy this year. BET ON IT.

Good luck with your car and everything else. If you get it, I hope you don't get kicked in the nuts too hard for this reckless, stupid, fun and awesome decision. If you don't get it now, do get it soon when you can afford it having earned the right to own a Porsche 911 without worrying about whether or not you have made a terrible mistake.

Sue Esponte

No, being a dick is a choice. Way to be a dick.

-Eric

white out

While everyone is talking about investment, remember one thing. You can die at any given moment. Then what's that investment worth to you?

That should be more than enough to maintain a 996. Like I said before, find a shop that works on Porsches vs. the dealer, it will save you a significant amount of money.

Quadcammer

probability dictates that you won't die prematurely (obviously ignoring known illness). Not delaying gratification is part of what got this country and government in trouble.

The you only live once or you may die tomorrow folks sure may have fun now. But watching them on welfare, food stamps, medicaid, etc when they are older because they didn't die is a sad thing.

Everything in moderation...some money towards fun, some money saved for the large chance you won't die tomorrow.

CAlexio

Eric,

I won't return the gratuitous insult, but I suggest you let go of the emotion and think about/re-read what I wrote. You'll find that none of it is malicious, in fact it's real and encouraging advice for the OP to reach higher if his condition allows. The "it's ok, everyone is a winner" mentality didn't help anyone. $35k in this country, means even someone with a high school degree isn't working many hours in a week.. Just by having a bit less leisure time and taking an extra small job would raise that by $10-$15k. (2 nights bartending pr waiting tables/week for example). A bit of entrepreneurial spirit, or depth of knowledge In a field of interest at a basic level can double that total to $70k easy.. Ill let YOU do the easy math there

. To reach $100k you need some years of experience and usually a college degree, or you have a regular job and work your own gig on the side if you don't have family obligations (like the OP).. Above that.. Yea, you probably need to excel in some way.. But I know a lot of real schmucks who make $150k. There are many on this board who make 7-8 figures and see someone like me as not reaching their potential.. It's pretty relative. But $35k means you're not even trying.. And that's the truth.

Eric,

Don't lower yourself to name calling, and don't be scared of the truth.. especially, if your visceral reaction is because this might pertain to you as well.

Sue Esponte

There was nothing gratuitous about my comment. You earned every bit of it.

-Eric

P.S. You nailed my reaction on the head. Have you considered a career in psychology?