What would be more cost effective?…

[comeaux]

never borrow money to invest in anything, comic book or otherwise.

 

(thumbs u

[crazyhips]

Get a new 0% for 18 months credit card and max that sucker out. If you still haven't paid it off by then transfer the balance to a new 0% card for a 4% fee. Assuming you pay the entire balance off over three years, your effective borrowing costs are 2% of the total amount over three years.

 

This assumes one has stellar credit that will remain so for 3 years.

[thunsicker]

Was that meant for me or the OP? Sorry. Just sometimes need to clarify.

 

 

OP. This is the exact stuff I was hearing in 1996/1997 when I was doing software engineering for a brokerage.

[ChrisInBaltimore]

Just to make sure, this is a joke, right?

 

Maybe

[youmechooz]

Buy what you can afford now. Later on, you might be able to sell off everything to get that one book. But yeah, maxing out a cc for a comic book is never a good idea.

[Shrevvy]

Even at 13% interest,

 

This implies 13% is a low or reasonable rate. In a near 0% rate environment, it is not. 13% is a higher rate than junk bonds. I would not finance anything at 13% if I did not have to.

 

What kind of grade are you talking? Are you talking 4k or 14k price?

 

Just use this tool & find out how much interest you'll end up paying:

Credit Calculator

 

a $14K purchase with 13% interest with $300/month payment won't get the book paid off for ~5 1/2 years & will end up costing you almost $20K by the time you're debt free.

 

Do you think the book goes up ~35% in that time? Cause that's how much you're banking on it in order for it even be a wash.

 

Ah, but it is not. When you go to sell that book, the IRS will want its cut and credit card interest is not tax deductible. So, you will pay taxes on your $6k gain. So, your $20k ain't $20k...I guess if you never sell you won't have that problem though.

 

 

Now...In four years, your $30k comic might be worth $60k...or in a big slump maybe it will be worth $32k.

-Terry

 

A big slump is an environment in which an asset goes up only 6%? I think it is this mentality that leads to threads like this. Asset prices don't grow straight the to the moon.

 

 

[MagnusX]

Maxing out a credit card with 13% interest to buy an AF 15 or waiting 4 or 5 years to save the money to buy a decent copy? I'm really not sure anymore. I've been here since '12 and more aware of the prices. They've risen pretty quickly.

 

This is purely hypothetical, but I'm starting to think it might not be…

 

[font:Book Antiqua]oh no you didn't..![/font]

 

[Buzzetta]

This will not end well

[A.Romeo]

What about borrowing from your 401k. The interest rate is lik 4%

[shadroch]

How about maxing out several credit cards, buying five of them and then declare bankruptcy?

Or take the Scmell route and rip off some old folks?

[Scturo]

What about borrowing from your 401k. The interest rate is lik 4%

 

And any Interest paid is to your self. But credit cards,

[CAHokie]

What about borrowing from your 401k. The interest rate is lik 4%

 

I really really hope this one was tongue in cheek.

 

Borrowing from one's retirement system for a comic book would be

[Chip Cataldo]

How about maxing out several credit cards, buying five of them and then declare bankruptcy?

Or take the Scmell route and rip off some old folks?

I would NEVER rip you off, Shad.

[Wilson3d]

I almost did that for a Spidey #1 last November. Instead I went through my collection and sorted out all the sets I didn't care much for and started selling on Ebay. It was like a part time job for a while but I was able to get a 5.0 after 3 months. Just my story but after I looked into how much interest (mine is 8%) I would be paying a month, I opted to sell other books to get it.

[kav]

Buy an AF15 on credit card, flip it for double

WINNAH

[Doktor]

What about borrowing from your 401k. The interest rate is lik 4%

 

I really really hope this one was tongue in cheek.

 

Borrowing from one's retirement system for a comic book would be

 

It's not entirely unreasonable. Significantly lower interest than a CC. Plus, if you're still in your younger years of saving for retirement & not maxing out your 401k contributions, it's not entirely unreasonable.

 

I still don't recommend it. But it has its merits. The repayment to your 401k goes back pre-tax, so even the interest isn't coming out of your net income, but your gross, which means you're going to feel the hit in your paycheck even less than you would paying the same % on CC interest.

[CAHokie]

If someone is to the point where they have to borrow from their retirement to buy comic books, they may have a problem. Imagine if something serious actually comes along. Lack of financial planning like that is why there are so many people at retirement age still working 40-60 hours per week.

 

I know this is all just in theory, but just saying!

[Scturo]

Yeah, taking money out of your 401k is crazy for many reasons. But given the scenario and the choices, it's one of the more cost effective.

[Doktor]

If someone is to the point where they have to borrow from their retirement to buy comic books, they may have a problem. Imagine if something serious actually comes along. Lack of financial planning like that is why there are so many people at retirement age still working 40-60 hours per week.

 

I know this is all just in theory, but just saying!

 

Oh, I don't disagree. But the repayment on say... a $5k loan from your 401k (which I had to do for something major last year) spread out over 4 years (I think? I need to check. I don't have the paperwork easily accessible) worked out to about $50/paycheck extra 401k withholding. Not exactly make/break money.

[revat]

I think people are just saying borrowing from your 401k is better than 13% to a credit card company