As an E-3 I wish I bought a new Camaro. Here’s why

[5dmkiii]

@racheljay50 I’m being 100% serious

 

[jrsinct]

@5dmkiii Let’s not forget the insurance difference between a Camry and Camaro!

 

[bernie226]

@5dmkiii Or just get a dependable used car around 7k and invest 18k.

 

[bernie226]

@5dmkiii That's what the investment is for! Later on you can get a kickass vehicle, place, vacations with the freedom away from mil.

 

[5dmkiii]

@bernie226 Invest in what though?

 

[bernie226]

@5dmkiii A Roth IRA (in VTSAX for example I use Vanguard) is a good spot for such an amount, 6k per year. You can invest 12k at once to cover the prior year plus the current. Years down the line, you will withdraw all those gains tax free.

To choose the fund or stock, depends on how much you want to risk or how patient you are. I have a lot of risk. There's my safe Roth IRA (VTSAX) and Roth TSP (Lifecycle). Guaranteed to grow and be there when I'm done with all this.

Then there's a sizeable amount of $ in individial stocks picked by me, super risky because the payoff isn't guaranteed, but can also be obscenely high if lucky. I bought a handful of stocks and will sit on them. Chances are they will improve after 1+ year of holding, though. Not to mention 5+.

Good luck!

 

[5dmkiii]

@bernie226 Why not invest it in stocks or crypto or real estate?

 

[bernie226]

@5dmkiii You can invest in all that too. I'm in stocks. You can also do stocks via a Roth IRA, I just elected to go the safer, steadier route of an index fund since I want a good chunk of cash for later. I have a self managed account for my stock investments.

Real estate could be an experience but I'd have to research a lot about it before I hop into that!

 

[fallencolin]

@5dmkiii The real advice you’re giving is that ceteris paribus (all things being equal), get what derives you more pleasure. Makes sense to me. The best financial decision is to also eat dollar ramen everyday but it’s not all about the numbers. Do what you please as long as you’re smart about it and the utility you derive makes sense. We all have different things that make sense for me but not for you - money dials as Ramit Sethi calls them. Cut down costs on the preferences that don’t matter for you (cars don’t matter to me) and spend on the things that do matter (convenience, in my case).

 

[gspfever08]

@5dmkiii Camaro would cost more to insure