I have around $400k in my retirement and investment accounts, 34 years old. Before you ask why I don’t have more it’s because I just started at FAANG in non tech roles 3 years ago. Tc: $300k Yoe: 13 total, 3 faang I want to buy a fancy $70k suv. I can afford the monthly payments however considering selling some google stock quarterly to pay for it. How bad is this decision? My thought is I could save up further, either way though I want the suv. Even looked at used but prices are still in $60s and sky high right now. Btw already have a home so no need for down payment and no kids in the future.
Why you dont have more
I bought a new car last year because the used price wasn’t worth it. But I love my car now and would make the same purchase again today :)
in general now is a good time to sell stocks
So many of these people have no clue what's going on.
Live ur life, no need to listen to others opinions because you'll get answers on 2 ends of the spectrum. Ur old enough to make ur own decision
Car is a depreciating asset - from an investment POV this is a bad decision. You’re better off buying a cheaper car and either (1) financing it if the interest rates are favorable / there’s a 0% promo period and you can pay off before the end of it (time value of money) OR (2) paying for it cash. That said, this is all about what goals you have in mind and over what time horizon. If you can comfortably afford this without compromising your goals and it makes you happy, then go for it. On the other hand if you want to retire ASAP I’d reconsider.
Or - really swing for the fences. Form an LLC that you hold rental properties under and then buy the a vehicle that qualifies for Section 179 (for example the G Wagon) and then take the tax write off.
Careful about that. Instant total depreciation. If you turn around and sell it for a profit, you will pay that tax based on the delta of your profit minus assumed depreciated value. E.g. Buy at 70,000 Write off as tax exempt 100% 6000lb + depreciated asset -70000 Sell the next year at 50000 Pay taxes on 50000 in profit
Just finance it. Interest rates at are an all time low. You can get a loan between 1.49-3 percent. Paying cash isn’t worth the opportunity cost.
In b4 someone advises you to watch the stock grow instead and buy the SUV 20 years from now.
Buying a new car is the worst use of your money. Find a lease deal instead
No lease deals on Porsches :( usually better to buy them
Buy Porsche used so you don’t take the depreciation hit