delock
BARBERSHOP COO
I believe your numbers are substantially off. Please explain (give me the formula you're using).
Any money guru can tell you how.....
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I believe your numbers are substantially off. Please explain (give me the formula you're using).
Any money guru can tell you how.....
That is rhetoric.............You will NOT get 60K of interest per year on 500K. You didn't answer the question because you can't. You will not find a secure non risk investment in America that will turn that type of profit.
First of all, there is no such thing as a non-risk investment. You put $1 in a savings account, you are RISKING your $1.
Secondly, it is very possible for a $500K investment to yeild $60K per year in interest. That is only a 12% ROI, there are TONS of mutual funds that yield 12% every year.
$500K invested into realestate would yield close to a 30% ROI.
Damn, that's a lot for a car note! What are you driving an Escalade Truck?
Sperm (and everyone else), when using acrynoms, please define them. Those who are seek knowledge here may get turned off by those who can provide it to them. (Can we get basic glossary sticky?)First of all, there is no such thing as a non-risk investment. You put $1 in a savings account, you are RISKING your $1.
Secondly, it is very possible for a $500K investment to yeild $60K per year in interest. That is only a 12% ROI, there are TONS of mutual funds that yield 12% every year.
$500K invested into realestate would yield close to a 30% ROI.
1) Savings accounts are insured up to $100,000.00. Your statement about a "$1.00 investment" is not true. Also, IRA(s) can be insured up to 250,000 but obviously is a long term investment. If the money is spreaded out in different account you should be o.k. but in actuallity you have $400,000.00 of risk exposure on $500K. The going rate for CD(s) as well as T-Bills or below 5%.
2) Mutual funds are "a risk" Your ROI is NOT guaranteed
3) Real Estate is "a risk" Your ROI is NOT guaranteed
Any investment is a risk. If you invest a dollar today, what is the present or future value based on some interest rate and term? Classic test question.
1) Savings accounts are insured up to $100,000.00. Your statement about a "$1.00 investment" is not true. Also, IRA(s) can be insured up to 250,000 but obviously is a long term investment. If the money is spreaded out in different account you should be o.k. but in actuallity you have $400,000.00 of risk exposure on $500K. The going rate for CD(s) as well as T-Bills or below 5%.
2) Mutual funds are "a risk" Your ROI is NOT guaranteed
3) Real Estate is "a risk" Your ROI is NOT guaranteed
Ok, here is the short of it
Current Principal $500,000
Years to Grow: one
Interest Rate 12%
Compound Interest 5 x annually
Equal $562,949.95
So I was off by $2949.95....it's not hard to do if you are smart about it.
What you have above is good in theory but not realistic. You made a statement that $60,000.00 is the yield on $500,000.00 (can one live off of that). Again, I state that you CANNOT get a guaranteed $60,000 yield on $500,000.00............Hence your premise is flawed. If you disagree, then PLEASE tell me who is going to guarantee a 12% return on this investment. :lol: :emlaugh:
Why all of the emphasis on "guaranteed"? Other than death, very little in life is "guaranteed". Yet, the ebb and flow of life goes on.
The important thing is that there ARE ways of earning 12% on your investment. Actually, it is not difficult to do when investing in stocks or real estate. Sure, there may be some volatility but there are ways to minimize the volatility (diversification, etc.).
Don't let the desire for a "sure thing" lull you into inaction. The world is dynamic - constantly in motion - and it rewards those who are able to take prudent action in the face of uncertainty.
Naw, I was a dayum fool when I signed those papers. Its a 2003 Chevy Avalanche. That is what ZERO down and being upside down on the trade-in does to a person. Like I said, I was a dayum fool, whitey got me on that one.
Who plays the stock market? And does anyone have an ING account?
Sorry I mis-typed yesterday, when I said that I bought what I liked.
This is a half truth. I need to complete the thought as I answer your question.
That is not a lot for a note! Yes, I purchased what I WANTED. Also, the price of the truck is third of my salary.
The point that I am trying to make is that I bought something that I could more than afford. I laughed when I was at the dealership and the salesman was asking me what I wanted to pay and month and I only replied by asking what is the interest rate. He thought that I didn't hear his question so he repeated it, I thought that he didn't hear my reply so I did the same. I ended up clowning his ass by going and working with someone else.
The point that I am trying to make is that if the monthly note is your main concern and not the interest rate, then more than likely that isn't the vehicle for you.
Look at the long term picture and keep more money in your pocket than theirs.
Why all of the emphasis on "guaranteed"? Other than death, very little in life is "guaranteed". Yet, the ebb and flow of life goes on.
The important thing is that there ARE ways of earning 12% on your investment. Actually, it is not difficult to do when investing in stocks or real estate. Sure, there may be some volatility but there are ways to minimize the volatility (diversification, etc.).
Don't let the desire for a "sure thing" lull you into inaction. The world is dynamic - constantly in motion - and it rewards those who are able to take prudent action in the face of uncertainty.