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re: Dave Ramsey's advice to pay off a car loan, rather than invest

Posted on 1/4/20 at 5:13 pm to
Posted by sacrathetic
Member since May 2019
618 posts
Posted on 1/4/20 at 5:13 pm to
nm
This post was edited on 5/21/20 at 1:59 pm
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423480 posts
Posted on 1/4/20 at 6:42 pm to
quote:

But the ROI will be different.

the ROI on...what, exactly?

quote:

It may work out that investing the money in the market was still the better decision mathematically, but I'd be willing to bet that it isn't as significant as you claim.

the math is the math

quote:

investing in the market also carries significantly more risk compared to real estate over the long term.

2008 would like to have a word with you

i think the historical return of stocks is greater than RE plus you don't have to deal with the illiquidity problems of RE

where RE gets you ahead is the tax treatment after 2 years of ownership. even LTCG rates can't compete with 0
This post was edited on 1/4/20 at 6:43 pm
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80803 posts
Posted on 1/4/20 at 9:33 pm to
quote:

sacrathetic

We are done here. You are either completely oblivious to how math works or just stringing me a long in a troll.

Argue that Dave Ramsey is good for people who are in financial trouble, want to prevent being in financial trouble, or have zero clue how finances work and I will agree with you. Don't argue that it is good for anyone wanting to maximize returns or that the Ramsey model is better at achieving higher ROI. Given our discussion on this page, it is obvious you are a perfect candidate to follow Ramsey's teachings.
This post was edited on 1/4/20 at 9:35 pm
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