Constructive advice needed please
Seasoned HDF Member
Joined: Feb 2006
Posts: 5,352
Likes: 648
From: Vegas, baby!
ApeHanger is exactly right. "Make your money work for you." Here's the thing about interest rates...a bank is never going to offer you a loan for less interest than what they are paying on people's CD's and savings accounts because that is a money loser for the bank. So it really doesn't matter what interest rates are.
And that worked great when savings were paying in the upper teens. 3 or 4 percent beats .085%, but it all seems not worth the trouble. There was a time we could "make our money work", but not now. This is why interest rates are important, not everybody gets loans.
Last edited by rjg883c; Apr 25, 2015 at 12:16 AM.
Cruiser
Joined: May 2013
Posts: 230
Likes: 0
From: Orange County, CA
If you have to ask - don't do it! $300 is more like a damn car payment and then some. Yes, the Touring bikes are nice, but they certainly do cost an arm and a leg compared to the other bikes. If you REALLY want the Glide, try to find somebody to take over your payments or something and purchase a used Glide when you have the money.
Road Master
Joined: Aug 2013
Posts: 941
Likes: 9
From: Denver, CO
I don't know how old you are, but Apehanger mentioned "I chose to leave the money where it was, use the cash I had in hand from selling my previous bike as a down payment and use some of the interest we gain off our money to pay the payment." I took that to mean interest from the money in the bank was used to make a payment.
And that worked great when savings were paying in the upper teens. 3 or 4 percent beats .085%, but it all seems not worth the trouble. There was a time we could "make our money work", but not now. This is why interest rates are important, not everybody gets loans.
And that worked great when savings were paying in the upper teens. 3 or 4 percent beats .085%, but it all seems not worth the trouble. There was a time we could "make our money work", but not now. This is why interest rates are important, not everybody gets loans.
I'm younger. Never lived in a time when I was getting anything above 5% on a savings account...certainly not teens.
You can certainly still make your money work for you. I never have more than about 10k in the bank...the rest of my money is wrapped up in investments.
Tourer
Joined: Mar 2011
Posts: 460
Likes: 5
From: Springfield, Louisiana
Well said! I agree
Elite HDF Member
Joined: Mar 2014
Posts: 4,214
Likes: 661
From: Prior Lake, MN
Back when anyone on the street could get at least 5% on a simple savings account, interest rates on loans were considerably higher than they are now.
I recall a period of time when 30 year mortgage interest rates were somewhere around 12% or even more. You could get maybe 8% or more on a CD if you went with a 60 month term. Car loans were up in the mid to high teens.
Now banks don't make as much money on the interest rate float so they've turned to service fees and such.
Even at today's really low interest rates, I do keep a few thousand dollars in the bank- use it to pay for things like the odd (and thankfully very rare, vehicle or home repair).
You can earn way better returns on your money if you are not risk averse- and have the stomach (and understanding of) things like mutual funds, etc...
Smartest thing I ever did was to stay in the market during the last couple plunges (right after 9/11 and the "great recession"), saw my account values plummet, but was able to purchase way more shares per dollar, so when the market recoverd, I made out like a bandit.
Too many people panicked and sold while the market was dropping, they permanently lost their value. The smart move is to often do the opposite of the heard mentaility- buy when it's low and cheap, and get out when it's high. Simple concept, but amazing how many do just the opposite.
Anyway, the above is simply my way of using my money, YMMV. I don't have a problem using other peoples money for capital purchases when I can use my own money to make more money.
I recall a period of time when 30 year mortgage interest rates were somewhere around 12% or even more. You could get maybe 8% or more on a CD if you went with a 60 month term. Car loans were up in the mid to high teens.
Now banks don't make as much money on the interest rate float so they've turned to service fees and such.
Even at today's really low interest rates, I do keep a few thousand dollars in the bank- use it to pay for things like the odd (and thankfully very rare, vehicle or home repair).
You can earn way better returns on your money if you are not risk averse- and have the stomach (and understanding of) things like mutual funds, etc...
Smartest thing I ever did was to stay in the market during the last couple plunges (right after 9/11 and the "great recession"), saw my account values plummet, but was able to purchase way more shares per dollar, so when the market recoverd, I made out like a bandit.
Too many people panicked and sold while the market was dropping, they permanently lost their value. The smart move is to often do the opposite of the heard mentaility- buy when it's low and cheap, and get out when it's high. Simple concept, but amazing how many do just the opposite.
Anyway, the above is simply my way of using my money, YMMV. I don't have a problem using other peoples money for capital purchases when I can use my own money to make more money.
Last edited by Brewmany; Apr 25, 2015 at 08:27 AM.
Road Master
Joined: Jul 2013
Posts: 946
Likes: 29
From: my house
I don't know how old you are, but Apehanger mentioned "I chose to leave the money where it was, use the cash I had in hand from selling my previous bike as a down payment and use some of the interest we gain off our money to pay the payment." I took that to mean interest from the money in the bank was used to make a payment.
And that worked great when savings were paying in the upper teens. 3 or 4 percent beats .085%, but it all seems not worth the trouble. There was a time we could "make our money work", but not now. This is why interest rates are important, not everybody gets loans.
And that worked great when savings were paying in the upper teens. 3 or 4 percent beats .085%, but it all seems not worth the trouble. There was a time we could "make our money work", but not now. This is why interest rates are important, not everybody gets loans.
Road Master
Joined: Apr 2007
Posts: 1,050
Likes: 44
From: VA
just another keyboard commandos thought's
A new ride is sweet, but? If you can get out of your sportster with out getting skinned go for it but only if you are still have the ability to save at least 10% of your salrey and not hurt your lifestyle as previously posted. ramen, PBJ, tuna and egg salad can get old if you are forced to go that route
Insurance cost for the new ride?
A new ride is sweet, but? If you can get out of your sportster with out getting skinned go for it but only if you are still have the ability to save at least 10% of your salrey and not hurt your lifestyle as previously posted. ramen, PBJ, tuna and egg salad can get old if you are forced to go that route
Insurance cost for the new ride?
Seasoned HDF Member
Joined: Feb 2006
Posts: 5,352
Likes: 648
From: Vegas, baby!
3, 4, or even a 5 % return seems like nothing anymore. My response wasn't meant to debate the merits of 'investments', just an observation that times have changed. Even my 401k beats bank interest now.
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Seasoned HDF Member
Joined: Feb 2006
Posts: 5,352
Likes: 648
From: Vegas, baby!
just another keyboard commandos thought's
A new ride is sweet, but? If you can get out of your sportster with out getting skinned go for it but only if you are still have the ability to save at least 10% of your salrey and not hurt your lifestyle as previously posted. ramen, PBJ, tuna and egg salad can get old if you are forced to go that route
Insurance cost for the new ride?
A new ride is sweet, but? If you can get out of your sportster with out getting skinned go for it but only if you are still have the ability to save at least 10% of your salrey and not hurt your lifestyle as previously posted. ramen, PBJ, tuna and egg salad can get old if you are forced to go that route
Insurance cost for the new ride?
Ultimate HDF Member
Joined: Jan 2008
Posts: 6,532
Likes: 132
From: SoCal
Dude, if you want it, get it. It's easy for some guy that has a house and 2 or 3 cars and a Harley or 2, to tell you not to buy a bike. You know what is gonna work for you, no one on here does.