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Would you? Making $400k/yr and buying a $200k car

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  • #16
    Originally posted by Tim View Post
    I actually feel sorry for this generation. Some painful financial lessons are ahead. They can probably afford them but will pay a high tuition.
    My guess is that the ending will be the same as many previous generations. Most people's net worth will be tied up in their house. It's a story as old as time.

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    • #17
      Originally posted by CordMcNally View Post

      My guess is that the ending will be the same as many previous generations. Most people's net worth will be tied up in their house. It's a story as old as time.
      I hope that doesn’t happen to physicians.
      At least for those saving 20% for retirement.
      https://www.medscape.com/slideshow/2...h-debt-6013910
      Medscape doesn’t make me optimistic.

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      • #18
        Originally posted by CordMcNally View Post

        My guess is that the ending will be the same as many previous generations. Most people's net worth will be tied up in their house. It's a story as old as time.
        'living the american dream' -- single family home ownership. It's not the worst idea, but certainly supported by american industry and until recently strongly encouraged by the tax code before the standard deduction got supersized.

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        • #19
          Originally posted by CordMcNally View Post

          My guess is that the ending will be the same as many previous generations. Most people's net worth will be tied up in their house. It's a story as old as time.
          A primary house is basically a savings account, except with higher yield. Historically, houses appreciate at inflation rate (3-4%) assuming you're in a semi-decent location.

          Since most people have trouble saving in general, buying a house for most people (avg Americans, and high-income docs) is a good way to force savings.

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          • #20
            Hah, I would never spend that much on a car! I am older, with higher net worth and higher income, but I drove practical Japanese cars for many years until I caught the Tesla bug.

            I agree that if his/her basic needs are covered, the emergency fund is in good shape, and the minimum of 20% retirement investments are steadily funded, he/she can spend the extra on an expensive car. But I would definitely recommend paying off all student loan debt first before considering that expensive Porsche. The psychology of financial decisions is important. Expensive, over the top luxuries don't make sense until all of the basics are covered, and that means all student loan balances paid in full.

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            • #21
              Income has little to do with purchasing power or wisdom of purchase.

              If the doc in question has a NW of mid-7 figures, he should buy it. But given the question, I would wager that he doesn't have that NW. I would further bet that it will be a long time coming--or never--that he reaches that financial milestone.

              As always, I am fascinated by the amount of car threads on the forum!

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              • #22
                I too think the student loans should be paid off first. I would never never pay this much for a car. I used to own a porsche. I paid cash and bought it used off ebay motors.

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                • #23
                  As usual, this Reddit poster is full of ******. Go back through his history. A few months ago he mentions being a CA-3 and several months before that mentions he wants to get a quarter sleeve tattoo once he secures a fellowship position. Another post 4 months ago says he has $600k in a brokerage, $50k in 403b, and $60k in checking. That's a far cry from the $2.1M he said he had in January and the current $1.7M he states he has now in the car thread.

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                  • #24
                    I'll assume the poster is being truthful since its more fun that way.

                    They can obviously afford the car. Just the fact that they only have 50k in student debt is enough to "afford" it. If they don't live in a HCOL area, boom another giant monkey off their back. No or few kids? even better. Money is fungible. Plus its not like they buy the car and poof 200k is gone. My understanding is these porsches hold their value very well.

                    I want a porsche too, but ill probably go for a boxster a long way down the road. Maybe the 911 turbo s is all that but i feel like if i was spending 200k on a car id want something that seemed a little more exotic

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                    • #25
                      Since the poster on Reddit is full of it, this isn’t really a valid discussion about someone’s actionable financial problem or concern. Thread locked.

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