txdinghysailor Posted March 15, 2010 Share Posted March 15, 2010 Next year I'll be taking out a $30,000 loan at very low interest, somehwere around 1-2%. Now, the question is, what should I do with it? I have to get a car, which I hope to spend around 15K on. That leaves 15K to play with, invest, or whatever. Options: Get a moth (super fast sailboat that i could pick up used for about 10K) Get an International 14 (a slightly less fast sailboat that i could get for under 8K) Invest the money Stake it all on one throw of roulette Get a kayak (i can get a kit for like 2K) Get a canoe (again, about 2K) Get a Hobie Tiger (superly fast sailboat) opinions? Link to comment Share on other sites More sharing options...
zunshynn Posted March 15, 2010 Share Posted March 15, 2010 I wouldn't recommend taking out a loan to play with. Just do a 15 K loan for the car. Link to comment Share on other sites More sharing options...
Laudate_Dominum Posted March 15, 2010 Share Posted March 15, 2010 [quote name='zunshynn' date='15 March 2010 - 07:46 PM' timestamp='1268696770' post='2073712'] I wouldn't recommend taking out a loan to play with. Just do a 15 K loan for the car. [/quote] [font="Arial"]Even better, get a $500 loan for a piece of c[font="Arial"]rap[/font] car. jk, but if I was interested in what you speak of I'd probably get the best boat out of the choices, taking into account possible maintenance costs or other related expenses. I wouldn't want a boat that was high maintenance and/or a money pit. Also, where will you be living? If near the ocean I'd be inclined to get a sailboat. Otherwise I'd be perfectly content with a canoe. But that's just me. [/font] Link to comment Share on other sites More sharing options...
Hilde Posted March 15, 2010 Share Posted March 15, 2010 Taking up a loan to spend frivolously is a really bad idea. Even if the interest is low. Link to comment Share on other sites More sharing options...
Apotheoun Posted March 16, 2010 Share Posted March 16, 2010 (edited) I think that you should buy $15,000.00 worth of Taco Shells [img]http://www.missionmenus.com/uploadedImages/Press_Room/Content/Our_Products/Jumbo%20Taco%20Shells%281%29.JPG[/img] You can never go wrong with Taco Shells! Edited March 16, 2010 by Apotheoun Link to comment Share on other sites More sharing options...
txdinghysailor Posted March 16, 2010 Author Share Posted March 16, 2010 Well the loan is only available for a short period of time, I need a good car, and since I plan on having kids after I get married after I graduate I won't have much more time in my life to waste money on manly things... Link to comment Share on other sites More sharing options...
Vincent Vega Posted March 16, 2010 Share Posted March 16, 2010 [quote name='Apotheoun' date='15 March 2010 - 08:00 PM' timestamp='1268697619' post='2073719'] I think that you should buy $15,000.00 worth of Taco Shells [img]http://www.missionmenus.com/uploadedImages/Press_Room/Content/Our_Products/Jumbo%20Taco%20Shells%281%29.JPG[/img] You can never go wrong with Taco Shells! [/quote] Certainly not as bad of an idea as a 21 year old buying a $10,000 sailboat. Link to comment Share on other sites More sharing options...
zunshynn Posted March 16, 2010 Share Posted March 16, 2010 [quote name='txdinghysailor' date='15 March 2010 - 06:05 PM' timestamp='1268697929' post='2073723'] Well the loan is only available for a short period of time [/quote] That's what they want you to think. There will always be others. Link to comment Share on other sites More sharing options...
Maggyie Posted March 16, 2010 Share Posted March 16, 2010 (edited) Don't spend the money on a boat. Consider: 1. Opening up a long-term CD that pays a higher rate than your loan interest rate. This might be hard to do because rates are very low right now. Worth looking into though. Please note getting a CD means the money is not available to you until the CD "matures" or comes due. The longer the term the higher the return rate. This is a nice, easy, guaranteed way to make a profit on the loan. Make sure the bank you choose is FDIC insured. 2. Invest. I really suggest getting a financial advisor to help you with this, just make sure their fees and other fixed costs are reasonable or low. I don't suggest opening up an E-Trade account and doing it yourself. It's like gambling- easy to hit it big and easy to lose the money in one go. Finance is complicated even for people who have studied it formally. Of course you could always invest in very low-risk stocks. Don't waste the money on "man things." You will be kicking yourself every day of your life that you are paying back that loan (even at the low interest rate!) Edited March 16, 2010 by Maggie Link to comment Share on other sites More sharing options...
Totus Tuus Posted March 16, 2010 Share Posted March 16, 2010 [quote name='txdinghysailor' date='15 March 2010 - 08:05 PM' timestamp='1268697929' post='2073723'] Well the loan is only available for a short period of time, I need a good car, and since I plan on having kids after I get married after I graduate I won't have much more time in my life to waste money on manly things... [/quote] If you're planning to have kids, you're not going to want a loan to be paying off while you're raising them. With all due respect, I think it's a very bad idea to take out a loan that you don't actually need. Link to comment Share on other sites More sharing options...
CatherineM Posted March 16, 2010 Share Posted March 16, 2010 If you don't know anything about investing, it would be safer to do the roulette. Get a car with a rack, and get the kayak. I used to have a sea kayak that you could put a sail on. That may seem a tad tame for you, but if you're going to be a family man, it's tame enough to take the wife and kids with. Link to comment Share on other sites More sharing options...
Nihil Obstat Posted March 16, 2010 Share Posted March 16, 2010 (edited) Buy a $10000 car instead (way more than adequate) and invest the rest in a utility company. I suggest Pembina Pipelines. Very low risk long term, and it should easily offset the 1-2% interest. Edited March 16, 2010 by Nihil Obstat Link to comment Share on other sites More sharing options...
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