Did I just make a dumb decision? [money, car]

[Suspens]

I have around 124k, spent 35k on renting housing (like mortgage, I will take back the whole money after 1 year) , 20k on a car and the rest invested in a financial institute; returning 20% per year. What is making me questioin my deciesion is the fact that I could buy a cheap car, and rent a house for 15k less. But the cheaper car was awful and there were no city centers, malls or chick zones around where the cheaper house was located; a dump gypsy area.

 

[Tictac]

20% per year?

Details please.

 

[Suspens]

Financial institute. Anyways, moving out in 2 days and feeling depressed already. I've been living with my mom all my life, will be missing my younger brother (19) as well. He is a wise gentleman, liked and loved by the whole family and relatives, specially by my father.

 

[grayclif]

I don't really undrstand how you'll get the money back from rent. But if that's the case good. You just bought a nice car and made a "great investment".

How does this financial institute give you a return of 20%?

 

[Scaramouche]

Dear Suspens,
Mate...You need to see a financial adviser Quick...The Loan,20% that's a typo surely?....the "mortgage"all sound very dodgy to me?...You didn't need to spend $35 Grand on a Car...Sure if you can afford it...But for a young Man with an ordinary job,a cheaper car a few years old sounds much more sensible!

 

[Bible_Belt]

You better get your money back from whoever promised you 20%. That sounds like a Bernie Madoff pyramid scheme

Then let me manage your money. I can make 200% per year, as long as your account size stays under a million. And it's legal.

 

[Tenacity]

I have around 124k, spent 35k on renting housing (like mortgage, I will take back the whole money after 1 year) , 20k on a car and the rest invested in a financial institute; returning 20% per year. What is making me questioin my deciesion is the fact that I could buy a cheap car, and rent a house for 15k less. But the cheaper car was awful and there were no city centers, malls or chick zones around where the cheaper house was located; a dump gypsy area.

- Can you explain spending $35k on renting houses? You said it's more like a mortgage and you will make the money back within a year, so did you invest $35k to mortgage some houses that you hope to sell off within a year and make a profit?

- $20k on the car, but what type of car was it? If it was under 2 years old, less than 35,000 miles, and has some sort of brand name to it like a sports muscle car or something, that's not bad. But if you spent that on a car that's a 2008 model with 100,000 miles on it then no.

- What is a "financial institute" and how is it paying you 20%? Are you invested in some high risk trading or asset management fund that holds high risk lending notes or something? From what you are detailing, you put $35k in the houses, $20k on the car and the remaining $69,000 ALL went into this investment? THIS is what you should be worried about, that isn't diversified at all and you HAVE to be in a high risk asset management fund if they are even talking close to 20%. You need to get some of that money out NOW. I'm a conservative guy, so I would have put it all in Brokered CDs paying about 4% right now and left it alone. But if you don't want to do that, try a nice Balanced Fund that holds many Stock holdings or Stock Indexes in the US and International, as well as Bond Indexes in the US and International. Should give you an average CAGR over the next 20 years (based on the prior 20 years) of 5.5% - 7.5% depending on how things go.

https://personal.vanguard.com/us/funds/snapshot?FundId=0914&FundIntExt=INT

https://personal.vanguard.com/us/funds/snapshot?FundId=0021&FundIntExt=INT

 

[Suspens]

Hint; I don't live in the US . So our currency is not $. Perhaps I should have converted the numbers before posting. As for renting, you basically 'borrow' money to the house owner and he allows you to live there for a year, once the contract is over he gives the money back. That's how it works here. That financial institute is some sort of a private bank as well, and that 20% interest rate is nothing when compared to inflation rate.


Any opinions regarding the main topics?

 

[zekko]

Okay, I think this is the same guy who keeps saying he gets a 20% return on his savings account. I'm pretty sure he must really mean 2%?

 

[grayclif]

Maybe you should have converted the numbers. So the $35k is a deposit. Out of curiosity did you make all of these transactions with the same party. Seems an awful lot of money to let go of at one time.

 

[Bible_Belt]

that 20% interest rate is nothing when compared to inflation rate.

Are you in Zimbabwe? Syria?

 

[Suspens]

Only a chick who has a high IL in me would show so much curiosity and ask so many questions, LOL.


How about helping me out and answering the main points?

 

[TheSplat]

Main points: No. You didn't mess up. You're getting a nice house and a nice car. Consider it an investment into your new lifestyle.

 

[sodbuster]

it depends..... on your INCOME, your job stability, how physically demanding your job is {can you do it when you are 60?}, longevity {how long does your family live.... mine hit 90, so I have to plan on that}, and a bunch of other stuff....

It's like sex, it's hard to go backwards. When you first get a BJ, it's great. When you get one who should write a book telling other women HOW to give one.... NOW it's hard to go back to a "less than normal one" SO, IF your life will only get better, you are OK. BUT, it's hard to go from a nice house and car to a "less than"

 

[Tenacity]

Only a chick who has a high IL in me would show so much curiosity and ask so many questions, LOL.


How about helping me out and answering the main points?

It's hard to do without providing clarification on a couple of things.

 

[zekko]

Why are you being so evasive about the supposed 20% interest rate? It's like saying you own a talking elephant then refusing to talk about it.

 

[Suspens]

/Thread

 

[Bible_Belt]

We're declaring fatwa on finance down here at the Bank of Isis. No infidel can beat these rates! You come and see us!

 

[Suspens]

yup, suspens and a HB7 he picked up with his new car:

 

[Scaramouche]

Dear Suspens,
"How about helping me out and answering the main points?"....Why not?...So "Hints", are not much use to me,I never was good at I spy with my little eye LOL...Like many here I am not into Smoke and Mirrors,I live in a World of Substance and reality...So Firstly:Where exactly are you?...Secondly:What is the name of the financial Institution you are investing in and what is the particular product?,Thirdly:what is the Make and model of your Motor Vehicle?.