Bought a Hellcat

[bluecollar]

That's a percent lower than long-term equity market averages. Most people would probably tell you 8% is what you should use - I could go on for hours as to why I think 6%-7% is more likely going forward. I use 6% for my personal modeling.

Given the current market trends, I wholeheartedly feel that 172% is quite realistic and attainable. At this rate, I'll have my Bugatti cowskin-dipped by year end.

[Chili]

It probably isn't. I have managed 9.1% compounded over the last nine years but I don't think I do as well as my risks say I should.

Sounds like me playing craps...

[Broncojohnny]

How realistic is 7% for 40 years?

It probably isn't. I have managed 9.1% compounded over the last nine years but I don't think I do as well as my risks say I should.

[slow99]

How realistic is 7% for 40 years?

That's a couple percent lower than long-term equity market averages. Most people would probably tell you 8% is what you should use - I could go on for hours as to why I think 6%-7% is more likely going forward. I use 6% for my personal modeling.

[Ruffdaddy]

It's critical to start early, that's for sure. $500 a month from age 25 until 65 at 7% annual return is $1.3MM. If you wait 10 years and start the exact same thing at 35, you have $600,000 ... less than half. So, 75% of the contribution but less than 50% of the ending balance.

How realistic is 7% for 40 years?

[quikag]

This is a pretty powerful article/spreadsheet on the power of time and compound interest:

http://www.daveramsey.com/blog/how-teens-can-become-millionaires/

Obviously, 12% is a little unrealistic, but the principle is good.

[stangin4lyfe]

I was ignorant to the ways of a 401k early on in life, and raising a kid with no financial help, I couldn't really afford it. I was working 2-3 jobs just trying to make ends meet, then "other things" kept coming up as they always do. I put myself in a really tight spot when I started contributing, but the effect wasn't even noticed after a month or so.

I got a statement the other day, and was floored at what it had grown to. Just wish I had started earlier in life. Even if it was a measly $100/month. I can't afford to let my kids make the same mistake I did. So, so stupid.

Very common statement made by folks who finally figure out what compounding interest really can do.

[quikag]

6 speed because I am old school. I know the automatics have progressed to the point where they are faster, but I do not care. I love banging gears.

I agree. All of my sporty/sports cars have always been manual except for my previous '12 CTS-V. I just recently drove a buddy's '13 V Coupe with a manual and now wish I had bought a manual V. It's just too much fun rowing the gears.

[slow99]

I was ignorant to the ways of a 401k early on in life, and raising a kid with no financial help, I couldn't really afford it. I was working 2-3 jobs just trying to make ends meet, then "other things" kept coming up as they always do. I put myself in a really tight spot when I started contributing, but the effect wasn't even noticed after a month or so.

I got a statement the other day, and was floored at what it had grown to. Just wish I had started earlier in life. Even if it was a measly $100/month. I can't afford to let my kids make the same mistake I did. So, so stupid.

It's critical to start early, that's for sure. $500 a month from age 25 until 65 at 7% annual return is $1.3MM. If you wait 10 years and start the exact same thing at 35, you have $600,000 ... less than half. So, 75% of the contribution but less than 50% of the ending balance.

[bcoop]

I used to run across people all the time with badass cars and not a pot to piss in otherwise.
"How much are you putting into retirement?"
"Oh, I haven't started that yet."

I was ignorant to the ways of a 401k early on in life, and raising a kid with no financial help, I couldn't really afford it. I was working 2-3 jobs just trying to make ends meet, then "other things" kept coming up as they always do. I put myself in a really tight spot when I started contributing, but the effect wasn't even noticed after a month or so.

I got a statement the other day, and was floored at what it had grown to. Just wish I had started earlier in life. Even if it was a measly $100/month. I can't afford to let my kids make the same mistake I did. So, so stupid.

[Broncojohnny]

I paid $62k, it will probably ascend in value and I have no kids nor do I want them. That is how I can justify itm

Nice price for sure. I look forward to the pics in the nsfw forum.

[slow99]

I used to run across people all the time with badass cars and not a pot to piss in otherwise.
"How much are you putting into retirement?"
"Oh, I haven't started that yet."

[kennybo]

I like how having a bunch of cars, arguably one of the worst cash outlays you can make, signifies wealth or success. Notice I didn't call it an investment.

Don't get me wrong, I do like the hellcat, a 70k car just isn't for me.

I paid $62k, it will probably ascend in value and I have no kids nor do I want them. That is how I can justify itm

[kennybo]

Very cool ride! My buddy got the first Charger Hellcat from Classic Dodge. He got sticker too and loves the car. I've driven it and that engine is a freaking monster. I own a ZR1, so I know what a fast stock engine car is like and this Hellcat engine is just special, definitely one for the ages.

Did you get manual or auto? The Charger only comes automatic. Full throttle upshifts are crazy aggressive and sound incredible.

6 speed because I am old school. I know the automatics have progressed to the point where they are faster, but I do not care. I love banging gears.

[quikag]

I like how having a bunch of cars, arguably one of the worst cash outlays you can make, signifies wealth or success. Notice I didn't call it an investment.

Don't get me wrong, I do like the hellcat, a 70k car just isn't for me.

You make a good point. The problem is most people can't even afford to get financed on a $70k car. So, if you have one and it's pretty obvious as it's in front of you a lot (you drive it around, park it in the garage/driveway, etc.), then you have a certain amount of success as defined by our stupid society. It's a little more obvious sign of "success" (using that term loosely obviously) than showing people your bank account balance because that is not socially accepted (yet).

That said, a bunch of $30k millionaires in DFW driving around a base BMW just to "look the part." Same can go for the $100k millionaires that buy more expensive cars but finance the crap out of them and scrape by to make the monthly.