FredBloggs
Guest
fuck off those are crap.
whenever i see one, i drag my key down the side to teach the dumb fuck that bought one a lesson.
bmw's arent bad motors though
Advice on car
- Thread starter nitro
- Start date
fuck off those are crap.
whenever i see one, i drag my key down the side to teach the dumb fuck that bought one a lesson.
bmw's arent bad motors though
It all depends on how you run your life I suppose. If you choose run your life like a corporation (i.e. to maximize shareholder value) then paying cash for anything with the cost of capital as low as it is ....is simply foolish.
1) Never buy an expense. Expenses depreciate. Car or Boat = expense. There is a reason that corporate cars and/or Jets, live on the right side of the Balance Sheet with the other expenses. You'd never catch a competent CFO of a corporation buying an expense.
2) Buy assets. Assets generally appreciate. Let the cash flow from your assets pay for your expenses.
3) Even buying an asset like a house with cash is not wise either. All you make is the forgone interest. And again with the cost of capital so low that makes no sense at all, in most cases.
Say youâre gonna pay $1mil for a new house. You get a mortgage for 5.5%. Mortgage interest deduction reduces that by 35-40% so your net effective interest rate is about 3.5%.
So the pivotal question is can you as an Asset Manager or as a Trader make more than 3.5% on your $1mil? If you can then you get a mortgage. (i.e letting your assets (cash) pay for your expense (mortgage interest)).
If you can't then you probably shouldn't be trading.
They didnât teach this in CPA school?
But you're right...to each his own.
1) Never buy an expense. Expenses depreciate. Car or Boat = expense. There is a reason that corporate cars and/or Jets, live on the right side of the Balance Sheet with the other expenses. You'd never catch a competent CFO of a corporation buying an expense.
2) Buy assets. Assets generally appreciate. Let the cash flow from your assets pay for your expenses.
3) Even buying an asset like a house with cash is not wise either. All you make is the forgone interest. And again with the cost of capital so low that makes no sense at all, in most cases.
Say youâre gonna pay $1mil for a new house. You get a mortgage for 5.5%. Mortgage interest deduction reduces that by 35-40% so your net effective interest rate is about 3.5%.
So the pivotal question is can you as an Asset Manager or as a Trader make more than 3.5% on your $1mil? If you can then you get a mortgage. (i.e letting your assets (cash) pay for your expense (mortgage interest)).
If you can't then you probably shouldn't be trading.
They didnât teach this in CPA school?
But you're right...to each his own.
That's a good way to get yourself shot.
FredBloggs
Guest
lol - typical bmw drivers response
happy dayz
