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Trying to decide what to spend money on.


vashonz

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I've gome across what to me is a good deal of cash. Probably about $15k. So now my dillema is what to use it for.

 

If I lived in the states I would just get he work done to my Z, but I live in Guam and the Z is in Seattle. I could get it out here, but I don't have a garage. None of the houses I've found around here have garages. I don't want to leave any older car outside because everything rusts quickly.

 

The diving is awesome here, I was at 100' and the water was 84 degrees on an overcast day.

 

-Fly to japan and buy an old skyline. Probably a bit more than what I want to spend, and I have to deal with shipping and customs.

 

-Buy a 280z/240z with a good body and some suspension/chassis stuff done to it. Then swap in my current engine.

 

-Spend the money to have my Z fixed. (The engine is awesome, but the body is not so great)

 

-Dive gear. I want to get into tech diving (200'+, deco stops, inside wrecks and caves)

 

-Save it.

 

Any opinions or other ideas?

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VASHONZ... I'm not trying to burst your bubble. I'm just a very practical person. How much money do you have invested for retirement? How much cash do you have saved for emergencies? What about your home... does/will it need any work? If it was me, I'd make sure those are all in order before I'd even consider putting money into the car. If it's a go, I start with a full NEW evaluation of the vehicle... what it NEEDS... and put those things at the top of the list. Then I would think about what I WANT and put those things at the bottom of the list. If any NEEDS and WANTS coincide, you can strike those from the lower list. Arrange these items by importance regarding (1) safety, (2) vehicle preservation and (3a) performance OR (3b) appearance.

 

Just one example: Let's say your 30 years old. Do you have any idea how much $15,000 can grow to by the time you're 60? Let's say it doubles every 5 years... that's nearly $1,000,000. It's just food for thought.

 

Just me .02. Good luck.

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Live life while it is in front of you.

 

Fly to Austrailia and dive the great barrier reef. One of most amazing dive spots, and freindliest countries, you could ever go to. They have these youth hostels in Cairns that are pretty cheap. You can probably book the dive boat on line. Not expensive at all. There are a lot of pretty girls in Austrailia and most of them seem to like to drink. This will give you something to talk about in the retirement home.

 

You might be able to make the reef trip and have enough left over for a decent shell back in the states.

The skyline idea is a good one, but like you said I would imagine $15K is not enough to pull that one off.

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vashonz

don,t be silly and waste the money, split it up into three seperate mutual funds and sit on it, once it increases in a few years youll be very glad you didn,t blow the cash!

 

IVE been slowly gathering the parts to install a killer big block in my vette, I could get stupid and just pull the cash out of a mutual fund or cd but then what do I live on in 20-30 years or use for emergencys

 

cars are a HOBBY not your main focus in life!

your family long term security comes FIRST

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The Z NEEDS nothing, just time for me to work on it. But with it in Washington and me in Guam it's difficult. I'll just wait a couple years until I move back to the states.

 

I'm investing $ for retirement every month, 5% of my paycheck right now. TSP is good stuff.

I don't really have any cash saved for emergencies, but I do have killer health insurance, and if anything happens with my parients in washington, the Navy will make sure I can get back to Washington.

I don't own a home, right now I live in converted base housing (3 bachelors living in one house, the govt pays for everything, does maintenance, ect.) I want to buy a house here (rumors of 7000 marines moving from Japan to Guam are making property prices go up), but havn't looked into it much.

 

With no bills I should be able to put away $1000/month into investments or savings. But I don't know anything about that stuff. I guess I'll have to get onto Scottrade or Etrade.

 

I think I'm going to drop the $4k on diving. Pay off the 2 loans I have, and put the rest of it away.

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vashonz... Why are you only investing only 5 percent into TSP? It takes more than that just to achieve max funds matching (instant profit)... just make it 10 percent. You'll have a total of 15 percent going into your gov't 401K including matching funds. You REALLY should be investing in a Roth IRA too... at least 10 percent... like Grumpy said... into some good MUTUAL FUNDS. How old are you right now, if that's not too personal? If you're 25, then you can retire at 50 as a multi-millionaire. Live meagerly at first... just as you are now. As your income increases, you can begin to increase daily spending. NOW is the time to invest so it can SNOWBALL.

 

BTW, if you're wondering, I learned the hard way... having to catch up!!!

 

The Z NEEDS nothing, just time for me to work on it. But with it in Washington and me in Guam it's difficult. I'll just wait a couple years until I move back to the states.

 

I'm investing $ for retirement every month, 5% of my paycheck right now. TSP is good stuff.

I don't really have any cash saved for emergencies, but I do have killer health insurance, and if anything happens with my parients in washington, the Navy will make sure I can get back to Washington.

I don't own a home, right now I live in converted base housing (3 bachelors living in one house, the govt pays for everything, does maintenance, ect.) I want to buy a house here (rumors of 7000 marines moving from Japan to Guam are making property prices go up), but havn't looked into it much.

 

With no bills I should be able to put away $1000/month into investments or savings. But I don't know anything about that stuff. I guess I'll have to get onto Scottrade or Etrade.

 

I think I'm going to drop the $4k on diving. Pay off the 2 loans I have, and put the rest of it away.

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Im sure not a wizz at investing but I was smart enought to put 12% of my pay checks for 35 years into stocks and many other investments,like mutual funds I lost my A$$ at times on stocks but the mutual funds did ok, nothing spectacular, but I did Ok, and retired at age 53, mostly due to being forced due too massive back/leg/ankle injurys, which Im slowly getting used too.

(and you wondered how/why I have the time to post so often)

its because I can,t be walking around for more than a very limited time/distance currently or for the last several years while I recover

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GRUMPY... sorry to hear that you were hurt. Hopefully, in time you will recover and feel much better.

 

VASHONZ... Grumpy is a classic example of someone who did the intelligent thing. Long-term investments, started early, diversified, sacrificed a few things to keep it up. So he could retire at 53 and doesn't have to worry about working for a living.

 

That said... you don't have to give it ALL up... just enough to ensure a safe and happy future for yourself and your family.

 

Another example... I overheard a young couple talking the other day. I guess they were both 20-years-old or so. The guy wanted to buy a $5K motorcycle and the girl was against it for many reasons, one of which was completely draining there cash reserves. What I WANTED to point out but DIDN'T (none of my business) is that a $5K investment now will yield them $1,280,000 (give or take a few hundred grand) by the time they're 60 years old. AND THAT'S IF THEY NEVER INVEST ANOTHER DIME!!:mrgreen:

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$5K investment now will yield them $1,280,000 (give or take a few hundred grand) by the time they're 60 years old. AND THAT'S IF THEY NEVER INVEST ANOTHER DIME!!

 

Based on what? Or am I missing something?

 

$5K, 480 months, 10% return.

FV=$268,503.31

 

$5K, 480 months, 15% return.

FV=$1,943,503.42

 

What a difference 5% makes!!!

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dsommer... Figures based on "guestimate"... capital doubling every 5 years.

 

BTW, I'm currently investing 15 percent of my gross. With a matching 5 percent, that's 20 percent. After I pay off a lone in 4 years, I'm lessening my 401K investments to 15 percent including the matching funds and putting another 10 percent into A Roth IRA.

 

But I've caused this thread to digress...

 

VASHONZ... If it were me, I'd invest $5K into a temporary mutal fund and collect that interest until you're ready to work on the car. In a couple of years, it'll grow to $6K or so (estimate). I'd put the rest into a Roth IRA... some good mutual funds for your retirement. Or just put it all into mutual funds but only spend $5-6K when the time comes.

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Mike,

Just a note, some companies are now offering a Roth attachment to their 401K's. Mine is. After much research to find the answer (how my company matches the savings plan) the best bet is to max out the 401K to company match (7% in my case) and put the remainder into a Roth.

 

Now back to the original post...

I've gome across what to me is a good deal of cash. Probably about $15k. So now my dillema is what to use it for.

 

Gosh you came across the money or was it re-up money? If re-up money have taxes been taken out of it already?

I'd sit on it for now, I know how your feeling. Out of country with a car on the other side of the ocean, damn. Here's what I did. I would buy parts as funds allowed and have them shipped to my dads house, onec I returned on leave I would work on my car. It's not like I was buying tires and wheels just "stuff".

 

Nowadays you have e-bay, if I were you I'd persue parts that way. Your not in a rush to get car parts. If the body of your car is not too good (no rust) why not have body and paint work done while you're away. Can somebody handle the details of this for you???

 

One other "thought" on the subject as people say invest save etc. Consider this, see mention of the Scarab in my signature? That is an investment car. It will either hold it's value or increase in value. It's not my daily driver nor will it ever be. Consider investing in an older car when you get back. 15K is a good start, by the time you get back perhaps you'll have another 3-6K and that will really put you in a solid buying position for an investment car. If you're so much into Z's consider a first gen 240 as original as possible (can I say that on HybridZ ha-ha) or one of the other special cars Datsun made, 10 year anniversary, Shiro, 50th anniversary, Scarab if you can find one, etc.

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dsommer... 401K matching funds... agreed.

 

If we're talking "investment", I agree with buying a car that will gain value over time. However, with few exceptions, they never come close to keeping up with mutual funds or a decent stock portfolio. Neither do houses, for that matter, though there are exceptions. My point is that "cash is king" and will nearly always net you more profit/interest. In other words, I would not sink $15K into any car unless your investments and emergency fund are in order.

 

BUT... it's YOUR money and you can put it ALL into your car if you choose:wink:

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Guest 81na ZX
Based on what? Or am I missing something?

 

$5K, 480 months, 10% return.

FV=$268,503.31

 

$5K, 480 months, 15% return.

FV=$1,943,503.42

 

What a difference 5% makes!!!

 

The US stock market has returned an average of 12% over history - at least sence 1901. So with an infinatly diversified portfolio (with a Beta of 1), investments will return 12%.

 

$5000 today, at 12% Annual, compounding daily (like stocks do), will return $607,073.33 in 40 years. HOWEVER, with an average inflation of 3% (which is much, much harder to guess than return), that 600k has the buying power of $183,121 today.

 

Inorder to be a 2006 millionare in 2046, you'll need $3.3 million in 2046. Which would only require $27,304.35 invested today in the stock market.

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81na Zx.. Looks good to me but you're bringing inflation into the equation... a valid and infinitely important factor... but I was just going for the "wow factor" regarding the power of cash investments leveraged with time and patience:wink:

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the bottom line here is that dropping the cash into at least three seperate diversified mutual funds and letting it ride while keeping an eye on the investments will do you a WHOLE LOT MORE GOOD than buying a few speed parts.....buy a few speed parts, play with the car and enjoy yourself, and work on the car, but invest at least 80% of that cash into your future

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