WOULD YOU SELL AN APPRECIATING ASSET TO BUY A FERRARI

you don't have to spend all that 80K on a car. don't forget taxes.

 

Greed is one of the 7 deadly sins. As well as Lust...not in the sexual way, but the self-control way.

80K is quite a profit. Your friend is right, saying that you never get hurt taking a profit. I'm not investor or stock broker, but me being my conservative self with money; I say take the profit and run.

But then again I'm not in your shoes or situation, I'm just a college business student.

 

Hard to say without knowing the asset category or your cost basis. I.e. 100% gain in stocks, I'd say take your profits. Don't forget taxes on the gain.

BTW - whether you take the profit is a separate question from whether you should use the proceeds to buy a Ferrari. Separate your investment behavior from your spending behavior, your investment results will improve.

 

Who are you? No info in your profile........

You really don't explain your situation in enough detail.

1. What is the investment?
2. Are you just taking the gain and leaving the principal?
3. Are these long term gains?
4. Do you have other investments?
5. Can you just purchase the car and finance it with the add'l gains projected?

Off the cuff I'd say do not sell an appreciating asset to buy a depreciating asset.

 

whatever you do make sure you sell those shares before some Democrat is voted in & increases the Capital Gains tax

I would definately sell off some of that just to secure some of that return

 

take it while the rates are low... where you allocate it, is a different issue entirely.

if you can swing it, put 1/3 or 1/2 into the f-car and fund the rest yourself. re-invest the remaining monies.

 

Sell enough to pay for the car and let the balance appreciate (if this is an option).

A Ferrari might depreciate, but it's hard to go cruising in gold coins.....

 

If you have to sell an investment to buy a non-investment car and you have to wonder if it's the right move or not financially...

...the answer would be no.

My suggestion is if you are dreaming of owning a Cavallino...

Work harder and make more money so you don’t have to make such decisions...


...you just walk into a Ferrari dealer and write a check for a 430.

 

Cash out now. The potential tax changes are scary, and the prospect of your current investment going up is outweighed by it staying stable or declining. Gold has had a good run, but it has got to end (soon I think). Have some fun, then look for a new investment vehicle. A 355 is a great performance vehicle, enjoy the reward!

BT

 

Haha , rappers would love that !

Back on topic , get a 355 as its prob one of the reasons you invested the money in the first place .

 

yes, precious metals require you to pay cap gains... especially if you've got that kind of pop on them.

 

take the profit....Buy the Ferrari because life is too short...if you decide you don't want it...sell it....buy it at a great price and you won't lose very much

 

i would cash out get the ferrari ill tell you what the first time you drive it youll know what im talkin about.i also have had a lot of cars you name it but now iknow the true meaning of ferrari specially if its spider,in 3rd gear 8500rpm thinkin let me stay in 3rd for another 30sec..............f..... the money we cant take it with us let the kids earn it the way we did,we work our buts off to get what we want if you cant have it whats the point,i saay go for it you can always make money thx..........................

 

was that english????

 

probably a wiser answer would be to buy what makes you happy bcus life is short. Nobody is guaranteed tomorrow.

Yes you might lose some $ in depreciation on the 355 but like I always say the value in a Ferrari is not the resale price but in the happiness you get from driving it

 

Do you want money or do you want a Ferrari? If you want both, I suggest a fully depreciated Ferrari like a 246, Daytona, 250 series car, Boxer...

Granted $80k will only go so far.

Ken

 

Go for it!!!

This is what I did. I took my profit, bought a rental property and with the cashflow, I pay for my monthly car payment (MB, not F-car). I still retain the profits in equity, plus appreciation and when the car is paid off, I will still have monthly cashflow. And the best is, the house I bought is in Hawaii. It has an ohana (apartment) in the back that I use on "business trips".

Bottom line is Go For It !!!

 

good answer!!!

-jt

 

Buy an appreciating Ferrari for $80 grand, like a Boxer. Or get a nice 328 and use the rest for more investment.

 

Fully depreciated? Haven't all of these been climbing north for a while?

Re: the original question, I wouldn't cash out any important investments solely because I wanted to buy a Ferrari. Decide whether you want to stay parked in gold and sell if you're ready - $80K sounds like a huge profit in a commodity where it's hard to count on much profit. I'd cash out.

The Ferrari question depends on how much money you want to sink into something that leaks oil, sucks gas, eats tires, goes fast, makes scary mechanical noises and looks like the eighth deadly sin.

 

Put $10K down........call Premier Leasing and away you go..........

If your investment goes up you win both ways.......if it doesn't.......you still have the money and the Ferrari.

And remember to press hard when you sign........you'll be making three copies........heh.

 

DITTO ! As long as you aren't jeopardizing your or your family's financial security ... go for it ! ! !

 

1999 was the year I would make 50k in the market then I would lose 50k. I said to myself the next time I am up 50k I would buy myself a ferrari and that's what I did and actually made money on the car, but that is another story. Do it! I was 41 and the kid across the street from me was 31 and had a heart attack, life's short and as I explained to my parents when I bought the car that the 10K loss my wife gets when she sells my car is not going to make a difference in anybodys life! you work hard you deserve it!