The flaw in all this reasoning is the 12% return on the stock market. Historically speaking, over the last 6 or 7 decades, the average stock market return is less than 8%.

this could work but you would have to buy a quality used car like bmw, toyota, infinity or something that will hold its value. try it with a kea and u can forget reselling for the same amount

@shadow6463 Sounds like you haven’t bought a good used car in a while, I have bought many used cars and shopped and got a good deal and 8 months later sold it for a grand more then I paid. It happens if you’re smart

So who’s got $475 car payments each month? I drive a seventeen year old car that I invest about $1000 in repairs each year. And I keep the oil changed.
And if you can afford $475 per month, what do you make per year?

Why would selling your $6250 used car still net you $6250? Some wishful thinking right there.

@daretb Technically you only have to drive a different car every 10 months. That means it exponentially gets better every 10 months because the money you spent for the previous car doesn’t lose much depreciation in that amount of time and you can sell your car to add to the money to get a new car. I’m 21 and I plan on doing this. I already have a somewhat dependable car so I should just maintain it while saving the money in a mutual fund. It just makes sense!

so, drive a cheap,dangerous, unsafe car for 6 years and poof u get to to buy a safe expensive car… pity the cheap car didnt save kids life in that accident…

if you dont like doing that, try keeping your maintainance schedule on your car and it should last you 15 – 20 years. Its amazing what a new air filter, plugs and regular oil changes can do to increase the lifespan of a car.

everyone wants to get rich quick!!! but there is no magic pills or secret diet. its just plain hard work and not being a iddiot with your money.

There’s a difference between the stock market in general, and a good selection of mutual funds. Also, not all mutual funds are “conservative”. There are many different types. Do some research. There are plenty of mutual funds that average 11-12% over a 10 year or longer period. Don’t look at the short term, and don’t think index funds or the market indexes are the same as mutual funds!

@christo930 – Over time you WILL NOT. It is only if you are looking short term. True the last 10 years has not been great for the average investor.

But QUIT being average! Be ABOVE average and you will do better!

@christo930 – Perhaps he meant that it will always come back like it always has. Think about it! The word “crash” IS NOT a comeback word. If you CRASH your car, or there is a plane CRASH then neither the car nor the plane is coming back.

BUT THE STOCK MARKET ALWAYS HAS and always will! Maybe you did not understand Dave @Conservative608

12% in the U.S. happens to be the average of the stock market. So even if you make 10% or ONLY 8% would you complain to Dave? (:-)
-Financial-Peace-Now Blogspot