Holding debt while owning a P-car

[Hendog]

When asked wether one should put money into an RRSP or on the mortgage, consultants will say we should do both if we can. The return on each is about the same. Personally, I think realestate is a better bet than RRSPs. Consultants have said that RRSPs double approximately every seven years given compounding of the interest. I haven't seen it. But my property has nearly doubled in less time. Keep in mind I'm in Canada so, as mentioned earlier, we can't write off our mortgage interest.

[Gogar]

If you really have a moral dilemma with it, then you need to :

1. Sell the Porsche.

2. Pay off your Mortgage, using some money from the sale of the Porsche.

3. With the spare cash you have lying around from paying off your mortgage, you can

4. Buy a Porsche.


Sounds like you're doing just fine, so enjoy the car.

[Porsche_monkey]

I would not own a Porsche if I had a mortgage. Not in Canada.

Got any money in your RSP?

[Sunroof]

Who in the hell pays a mortgage off? That was reserved for the last generation. Isn't the interest deductible in the northland?

P-cars torture the souls of those who cannot stop dumping small fortunes into repair, maintenance and the like. They are to the multitiude the most impractical cars to own, BUT saying that the pride and pleasure in ownership is unparalled on the planet!

Stop biting your fingernails over the stresses of paying off a mortgage and live alittle..............................enjoy the Porsche, charge plenty of goodies on your zero balance card and join the rest of the world.


Bob
73.5T

[KFC911]

Originally Posted by Sunroof

Who in the hell pays a mortgage off? That was reserved for the last generation....

How old are you? Maybe I'm the generation you're referring too . I paid off my primary mortgage years ago, and have purchased two other investment properties using HELOC (for part of the purchases - also paid off) along the way. If you have no problem being in debt, that's cool until something unexpected (job loss, etc.) happens. Do you EVER intend to retire and enjoy the fruits of your labor? Debt free and simply wouldn't have it any other way at this stage in my life as long as I can help it...

[HardDrive]

Henri, why do anything in life? Are you working your life away so that when you die, people will say, "Well, he was quite a bore, but at least was fiscally responsible"?

If you don't enjoy the car anymore, fine, sell it. But it does not sound like that is the case.

Keep the car.

BTW, you did not state how old you are, but it sounds like you are in a reasonable financial position.

[serge944]

If you sold yourself out, you could put that on the mortgage too...

As reiterated several times already - find a happy medium and enjoy life.

[YTNUKLR]

There are plenty of people that have $20-30K new cars and aren't even close to your level of financial stability. Most new cars cost more than an 80s 911.

If I got rich one day, I'd take a lot of pleasure in giving most of it away to people that could use it better. Until then, I just have to take comfort and enjoy every day I get. I'm only 21 but my Dad died when he was only a year older than you (48), and for whatever reason, didn't get a fair shake at life, in my opinion. Drive that 911 every damn day, Henri. We aren't on this planet for very long.

[jorian]

On their deathbed no one ever said "I shouldn't have bought that Porsche."

There are ways to make the interest on your mortgage deductable in Canada.

[p911dad]

It seems from your description of your balance sheet you and wifey are doing fine. In fact, you should up your commitment and also get a track car for more fun! Maybe a 944 just to mix up the parts bin, go really crazy. Don't forget to get a Suburban to pull that new trailer you will also need. Oh, and you will need a shop to keep it all out of the cold weather. There, now your finances will really be cooked and you will be just like the rest of us! One more thing-put a woodstove out in the shop cause that's where you will be sleeping!

[David]

Like others here have alluded to, I don't work today so I can live better in the future. I save for my retirement goals plus some cash for emgencies and spend the rest. My father lived to 42 and my mother will probably live to over 80, so I set my retirement to live to 80 but live like every day could be my last.

[Sunroof]

.............."Who in the hell pays off a mortgage"?

Well, its called Divorce, which was not so prevalent in my father generation. The probability of loosing your house to your ex-spouse, especially when your children are entrenched in an excellent school district, is a no-brainer! So, you pick up the pieces and start again. Another mortgage.

If you were to query then number of divorced men in the states on the disposition of their homes during a divorce the great majority will have given them up to the ex.

But, this thread is not about divorce, its about financial security and Porsche ownership. Luckily for me I got to keep my 911!! Unfortunately its too small to live in!!!!!


Bob

[Porsche-O-Phile]

I've somehow managed to avoid divorce, mortgages AND kids, so I guess I'm doing okay. I certainly have a way lower stress level than many of my peers.

Of course P-car ownership keeps me from becoming wealthy I suppose... But I'm having fun at least. That's what I keep telling myself anyway.

[Palum6o]

come on... your P car isn't worth that much to really make such a difference. Just enjoy life while you can and keep your pee pee clean.

[Porsche-O-Phile]

Worth? No. You're right. But COST?!?! That's another issue entirely.

You mean you're not supposed to put 1/4 to 1/3 the book value of a car into it every year?!?! Who knew?!?!

[Porsche_monkey]

Originally Posted by Sunroof

Who in the hell pays a mortgage off?

Isn't the interest deductible in the northland?


Bob
73.5T

Me. And typically, no it's not.

[Wickd89]

Live a little!
I use to spend my dispossible income in traveling. When I had kids, I reduced the travel and got a Porsche.

Money IS NOT everything....... Actually my Pcar is holding its value better than my IRAs.. ;-(

If anything, I should go out and buy a Ferrari California... ;-))

[KFC911]

Originally Posted by Sunroof

.............."Who in the hell pays off a mortgage"?

Well, its called Divorce, which was not so prevalent in my father generation....

Ah yes, I've been "lucky". The "Big D" has derailed many prudent folks in regard to finances . I've too have been fortunate in that regard but I do know how relationships can run aground (re Ian's thread regarding "room monkeys"), but when my ex g/f "turned" on me after 8+ years several months back, at least I only lost her, and my financial security remained intact. We had talked a bit about marriage over the years, but THANKFULLY that wasn't part of the equation. So, in many cases, the key to finacial success = NO "D", and isn't that one a total crap shoot ?

[Dave L]

Originally Posted by KC911

So, in many cases, the key to finacial success = NO "D", and isn't that one a total crap shoot ?

I agree that avoiding divorce is key, but I dont know about the crap shoot part though. IMO if you are making financial decisions and keeping in mind the possibility of divorce I would suspect it might be a self fulfilling prophecy.

Keep the car, put extra money on the mortgage by paying weekly and maybe increasing the payments a little. Put money in an RRSPs straight off your paycheck and take any tax refund at the end of the year and put it on the mortgage as well.

[Sunroof]

Again, not to mull over divorce, I have a few friends who were married over 20-years and wound up divorcing and facing financial ruin! Its the courts down here that favor the ex-wife and part of that favor is allowing the ex to keep the house, especially if children still reside. So, indeed mortagages to get paid off; however, their is not much in the way of bargaining for equity in the house with the ex. and spending a small fortune over arbitration fees for deciding who gets the leather sofa versus Aunt Mildred's silver tea set, does not help the bottom line either!

The key fellas is find a way to.................STAY MARRIED!!!!!!!!!!!

Bob
73.5T