Recommend me cars to purchase given my financial situation.

[ones3k]

Just graduated, 22 years old, pay rate is approx 65k/year starting in July. I currently do NOT have a vehicle. No student loans, i don't owe anything.

Earlier i was debating going with an acura TSX for 28k.
PROs: with care it should be extremely reliable, plenty of power, options, good gas milage, and should last me 10 years easily.
CONS: A little pricey for my salary.


What do you think i should do for a car? Keep in mind i need reliability as i intend to keep my car for awhile.

edit: i currently do not own a vehicle

 

[Orsorum]

What's your profession?

 

[minendo]

At 65k/yr with no debt you should be able to pay that car (the TSX) off within a year easily.

 

[Slew Foot]

Ehh, save your money for a house. Get something cheaper but reliable (Civic, Camry, Accord, etc...) and in a couple years youll hve enough for a down payment.

The TSX takes premium gas if i remember correctly.

 

[fbrdphreak]

Save up for a while so you can have a killer downpayment, get a 0%/low interest loan (some companies offer like 24 month 0%), and do it then.

 

[ones3k]

Originally posted by: Slew Foot
Ehh, save your money for a house. Get something cheaper but reliable (Civic, Camry, Accord, etc...) and in a couple years youll hve enough for a down payment.

The TSX takes premium gas if i remember correctly.

I honestly can't see myself buying a home too soon... I'm just starting my career, who knows what will happen? I may end up moving to another state and taking a new job in a few years, i want to wait a while before i make a serious purchase like a house.

 

[bennylong]

If you were smart, you would max out your saving in your IRA and 401k at age 22 and retire at age 40 and tell everyone to go to hell.
If you were to max out your 401k at $15k a year, get a 6% match, that's another 4k free, put another $4k in your roth.


In 18 years, your investment will be worth $1,314,641. Your car? It will be worth maybe $500.

I wish I saved my money when I was 22, I could have retired so much earlier. Now I have to wait till I'm age 45 before I can think of retirement.

 

[gotsmack]

get a good used car in the $12K range. Then save up for a new better car. You don't want to spend too much on a car before you start work, because you might get canned.

 

[Taggart]

carmax ftw

 

[ones3k]

Originally posted by: bennylong
If you were smart, you would max out your saving in your IRA and 401k at age 22 and retire at age 40 and tell everyone to go to hell.
If you were to max out your 401k at $15k a year, get a 6% match, that's another 4k free, put another $4k in your roth.


In 18 years, your investment will be worth $1,314,641. Your car? It will be worth maybe $500.

I wish I saved my money when I was 22, I could have retired so much earlier. Now I have to wait till I'm age 45 before I can think of retirement.

link me to the investment calculators you're using for 401k and roth IRA

Also, do you ha ve any recommendations on which car i should get? Without a car i will be making 0k/year

 

[iamwiz82]

Originally posted by: bennylong
If you were smart, you would max out your saving in your IRA and 401k at age 22 and retire at age 40 and tell everyone to go to hell.
If you were to max out your 401k at $15k a year, get a 6% match, that's another 4k free, put another $4k in your roth.


In 18 years, your investment will be worth $1,314,641. Your car? It will be worth maybe $500.

I wish I saved my money when I was 22, I could have retired so much earlier. Now I have to wait till I'm age 45 before I can think of retirement.

I hope you aren't silly enough to think that $1.3 mil would be enough for a 40 year old to live on for the rest of his life in 18 years.

 

[OS]

Originally posted by: iamwiz82

Originally posted by: bennylong
If you were smart, you would max out your saving in your IRA and 401k at age 22 and retire at age 40 and tell everyone to go to hell.
If you were to max out your 401k at $15k a year, get a 6% match, that's another 4k free, put another $4k in your roth.


In 18 years, your investment will be worth $1,314,641. Your car? It will be worth maybe $500.

I wish I saved my money when I was 22, I could have retired so much earlier. Now I have to wait till I'm age 45 before I can think of retirement.

I hope you aren't silly enough to think that $1.3 mil would be enough for a 40 year old to live on for the rest of his life in 18 years.

he could move to thailand or vietnam, lol.

 

[ones3k]

Originally posted by: iamwiz82

Originally posted by: bennylong
If you were smart, you would max out your saving in your IRA and 401k at age 22 and retire at age 40 and tell everyone to go to hell.
If you were to max out your 401k at $15k a year, get a 6% match, that's another 4k free, put another $4k in your roth.


In 18 years, your investment will be worth $1,314,641. Your car? It will be worth maybe $500.

I wish I saved my money when I was 22, I could have retired so much earlier. Now I have to wait till I'm age 45 before I can think of retirement.

I hope you aren't silly enough to think that $1.3 mil would be enough for a 40 year old to live on for the rest of his life in 18 years.

Yes, and you cant even touch IRA or 401k assets until 59 or 60.
Also, 18 years from now 1.3million will be worth about 650k - 700k (todays dollars) if inflation keeps up the way its been going.

 

[bennylong]

http://www.choosetosave.org/calculators/

If he's living the credit card lifestyle, then no, he won't be able to live in retirement for the next 40 years. But I think most people can live on about $4300 a month for the rest of their life, not counting any income from Social Security or Pension. You must live a grand lifestyle.

https://flagship5.vanguard.com/VGApp/hn...rement/PEdRetTapDetermineWDContent.jsp

 

[bennylong]

That's not true. You can take your Roth money out anytime you want without any penalty. You will have to pay a penalty if you take out any gain or dividend.

And you can get into your 401k at age 55 or even earlier.

"The substantially equal periodic payment exception is available to anyone with a 401k plan, regardless of age, which makes it an attractive escape hatch. It is called a Section 72(t) distribution. In a 72(t) withdrawal, the distributions must be "substantially equal" payments based upon your life expectancy. Once the distributions begin, they must continue for a period of five years or until you reach age 59½, which ever is longest. The full rules and life expectancy tables can be found in IRS Publication 590. This option generally give you the least retirement pay out available.

Keep in mind that if you use too high a rate of withdrawal, you could run out of money, even before the 72(t) distribution ends, particularly if your investments decline in value substantially. "


http://www.moneystrategiesinc.com/401k/education/earlyretire.html

 

[iamwiz82]

Originally posted by: bennylong
http://www.choosetosave.org/calculators/

If he's living the credit card lifestyle, then no, he won't be able to live in retirement for the next 40 years. But I think most people can live on about $4300 a month for the rest of their life, not counting any income from Social Security or Pension. You must live a grand lifestyle.

<a target=_blank class=ftalternatingbarlinklarge href="https://flagship5.vanguard.com/VGApp/hnw/content/PlanEdu/Retirement/PEdRetTapDetermineWDContent.jsp">https://flagship5.vanguard.com/VGApp......nt/PEdRetTapDetermineWDContent.jsp</a>

$4300/mo in 50 years isn't going to be worth diddly crap.

 

[bennylong]

$1.3mm will be worth $917,302 at 3% inflation rate.

 

[bennylong]

Make all the excuses you want, "Money won't be worth much. I can't afford to save."

It won't be my probably in 20 years.

 

[OS]

Originally posted by: bennylong
$1.3mm will be worth $917,302 at 3% inflation rate.

inflation isn't 3% though

dunno, i want to retire early also and I save a fair amount, but no matter how i cut it, i'll still need to work unless i rake in an assload of money soon. The main thing is insurance costs an arm, leg and testicle on your own, especially as you get older.

 

[Orsorum]

The problem is that we've been raised on faulty expectations. We all want to retire at 45 with a $2 million house, a BMW in the driveway, and a boat to go fishing with. The fact is, it takes time, effort, blood, and sweat to make money, and it takes a LOT of sacrifice, luck, and planning to do well enough both in your career and in your investing to retire before 50. There's no way around it.

That doesn't mean it's not attainable. But it means that you shouldn't set your expectations too high. You may have to work into your 50s, and you may not have a vacation home when you retire; you may not be raking in $200,000 a year (or the correlative amount in inflation-adjusted dollars) in dividends. Even so, most people should be able to retire in their late 50s and be reasonably financially secure for the rest of their life.

 

[Alprazolam]

Bentley Arnage .

 

[ones3k]

Originally posted by: bennylong
Make all the excuses you want, "Money won't be worth much. I can't afford to save."

It won't be my probably in 20 years.

Besides, who ever said i was a money spender or living in the "credit card lifestyle?" In fact, i already planned on putting 3k into my 401k (this maximizes company match, they match 3k), putting 4k into my roth, and saving an additional 3-6k. I don't consider myself extravagant with expenses at all, however putting some money into a nice car that will last me 10 years doesnt seem like such a bad idea. THe key being 10 years.

 

[mugs]

The arguing for and against saving is retarded. Obviously saving money is the wiser financial decision. The OP knows that from the first (of many) threads he started on this subject. The arguments against saving money boggle my mind.

The OP has obviously thought about this a lot (given the several threads he has started on the subject) and thinks that a nice car is worth the extra expense. He's asking for advice on the car now, not whether or not he should buy one.

My suggestions:
1. Buy used.
2. You mentioned in another thread that a used TL (2004+) is too expensive, but they are within your price range of $28k.
3. If you buy new, use Costco, Carsdirect, and http://www.fool.com/car/car.htm to get the best deal.

 

[bennylong]

Originally posted by: ones3k

Originally posted by: bennylong
Make all the excuses you want, "Money won't be worth much. I can't afford to save."

It won't be my probably in 20 years.

Besides, who ever said i was a money spender or living in the "credit card lifestyle?" In fact, i already planned on putting 3k into my 401k (this maximizes company match, they match 3k), putting 4k into my roth, and saving an additional 3-6k. I don't consider myself extravagant with expenses at all, however putting some money into a nice car that will last me 10 years doesnt seem like such a bad idea. THe key being 10 years.

That was mean for the other poster that had all the excuses for not saving.
And i would get Toyota. My sister has been driving the same Toyota Camry for 15 years and haven't had any problem. No wonder the Japanese are creaming GM.

 

[saymyname]

Originally posted by: ones3k
Just graduated, 22 years old, pay rate is approx 65k/year starting in July. I currently do NOT have a vehicle. No student loans, i don't owe anything.

Earlier i was debating going with an acura TSX for 28k.
PROs: with care it should be extremely reliable, plenty of power, options, good gas milage, and should last me 10 years easily.
CONS: A little pricey for my salary.


What do you think i should do for a car? Keep in mind i need reliability as i intend to keep my car for awhile.

Whatever you get, get it used. $65K won't go as far as you think it will and you'll appreciate the extra cash flow that buying a used car will provide.