Retire in a "Rari"

[SuperCarGoals]

If you don't know what a "Rari" is then you haven't been listening to Fetty Wap or any of those other Hippity Hop Rappy artists out there



Seriously though - I do aspire to Fat FIRE with a Fer"rari" or Lamborghini type Super Car in my meager garage at some point - if possible.

==

Hello there! I just created my account, but have been lurking for a bit.

I am 41 years old and in IT.

As of today, MINT puts us (me, my wife, and 2 young kids) at a net worth of about $1.920MM. Approximately $200K of that is primary residence equity.

Currently, we are saving about $50K - $60K in various vehicles (401K/Backdoor Roth/HSA), and are aiming to have our home paid off in about 11-12 years.

A basic retirement calculator shows us at $4.858MM if we are able to invest $55K per year at 7% starting with $1.720MM in investable assets today - in 12 years.

This should throw off $194K per year or $16K per month (4% SWR).

Let's say with taxes/healthcare unknowns, I'm down to $11K per month.

Once our house is paid off, I'd estimate our monthly "mandatory" expenses will be in the $3500-ish range.

This should give us $7500 in "fun" money - for travel/dining and a Ferrari lease!?!

==

However, you know what they say about the "Best Laid Plans"

I'm sure I'll lose my job or get sick along the way - stock market crashes - the usual.

But I'm trying to be optimistic here

==

Am I being OVER-optimistic? Please feel free to poke holes/face-punch me.

 

[braumeister]

Just don't take turns with it at too high a speed. You might be at risk of rolling it over and going past the shoulder and down a slope.
That's a long way to tip a Rari.

 

[SuperCarGoals]

Just don't take turns with it at too high a speed. You might be at risk of rolling it over and going past the shoulder and down a slope.
That's a long way to tip a Rari.

LOL!

https://en.wikipedia.org/wiki/It's_a_Long_Way_to_Tipperary

 

[Bamaman]

I had a friend that bought a new Ferrari when FCA offered a special one time order allotment to him. He had it in 6 months--far sooner than others on 2 year waiting lists.

Ferrari dealers will buy the cars back for what you pay for them a year later, and they sell them used for more than original MSRP. My friend sold his Ferrari for a profit after not wanting to be the center of attraction everywhere he drove the car.

So Ferrari's are not such a bad deal after all--if you have the cash flow to buy one. If I bought one, I just know God would throw a telephone pole in front of mine.

 

[OldShooter]

From the perspective of someone who had a lot of fairly "super" street cars (like an original aluminum 289 Cobra) and who raced sports cars for 15 years:

Supercars are great for impressing people if that is your thing, but what you can do with them as a street car is so limited that it's almost funny. Even getting off the street for some kind of track day, your skills will not permit you to get anywhere near such a car's theoretical capability. And a good thing, too, as you could easily hurt yourself experimenting at the limits.

But the good news is that you don't have to wait to have some car fun. Find some autocross competitions in your area. These "parking lot grand prix" events are driven in your street car and are a great starting point. From there you can move into serious amateur racing (the primary organization is SCCA) to develop your skills and to test your capabilities. I went thorough that progression with a mid-level budget, probably spending well north of $100K, and haven't regretted a minute of it.

I'm already retired and could buy any of the exotics for cash but wouldn't consider such a waste. I recently sold a Mazda RX-8 and bought a Soob WRX. Both of them have plenty of capability to deal with any street driving situation though the Soob does have more horsepower than is really necessary. For fewer doors, a Miata or a Honda S2000 are pretty good and fun street solutions too.

 

[MRG]

A basic retirement calculator told me I'd be worth 20 million by this time in 1999. I'm not worth 20 million.

 

[ERD50]

From the perspective of someone who had a lot of fairly "super" street cars (like an original aluminum 289 Cobra) and who raced sports cars for 15 years:

Supercars are great for impressing people if that is your thing, but what you can do with them as a street car is so limited that it's almost funny. ....

I know someone with a replica Cobra. He's seriously looking into de-tuning the engine, it's just too responsive for any kind of sane (and even not-so-sane) street driving.

It has so much power that you can rarely just 'punch it', you've got to feather it a bit to maintain control and not be speeding by way too much in no time.

But being able to sell a Ferrari back after a year or two for what you paid for it sounds tempting... hmmm, I bet the insurance would be as bad as depreciation on a 'normal' car. And I'd probably just look like a sad old man trying to buy attention!

-ERD50

 

[NW-Bound]

A basic retirement calculator told me I'd be worth 20 million by this time in 1999. I'm not worth 20 million.

You bought too many Raris along the way?

 

[SuperCarGoals]

For fewer doors, a Miata or a Honda S2000 are pretty good and fun street solutions too.

I have actually owned an S2000! And quite a number of other “fun” cars. Currently in a Cayman.

Haven’t done SCCA, but have been to a performance driving school and hoping to book a Porsche track experience in Atlanta this year.

I’ve been a car enthusiast since I was little. So this is more of a childhood dream... not something that I deem to be permanent.... and only something I would do if I had the cash flow.

So perhaps a lease here and there of various Super Cars... no long term commitments.

 

[SuperCarGoals]

You bought too many Raris along the way?

Haha! Just saying “Rari” makes me giggle...

But yeah.. no guarantees in life.

I dont believe my basic calculator figures are too far fetched with my current inputs... but I have a little time on my side and a wife that “claims” she wants to work forever, so I should still have a sugar momma past 53

 

[OldShooter]

I have actually owned an S2000! And quite a number of other “fun” cars. Currently in a Cayman.

Haven’t done SCCA, but have been to a performance driving school and hoping to book a Porsche track experience in Atlanta this year.

I’ve been a car enthusiast since I was little. So this is more of a childhood dream... not something that I deem to be permanent.... and only something I would do if I had the cash flow.

So perhaps a lease here and there of various Super Cars... no long term commitments.

OK, I see. But I will tell you that those track days are like kissing your sister compared to really racing. In fact I'm surprised more people aren't badly hurt when they cook the brakes on their street cars. I like real race cars, competent and licensed guys to race with, corner workers, and ambulances standing by.

Autocross that Cayman. You'll be a changed man.

 

[Dtail]

I have actually owned an S2000! And quite a number of other “fun” cars. Currently in a Cayman.

Haven’t done SCCA, but have been to a performance driving school and hoping to book a Porsche track experience in Atlanta this year.

I’ve been a car enthusiast since I was little. So this is more of a childhood dream... not something that I deem to be permanent.... and only something I would do if I had the cash flow.

So perhaps a lease here and there of various Super Cars... no long term commitments.

Welcome SuperCarGoals.
I drive a BMW Z4 with an M type engine and handling. It is fun for me with top down driving all year long. Have tracked it a few times, getting up to 145 mph on the straightaway.
Used to dream about a Lambo, but can't swing it with other Entertainment and Travel budget competition.
Good luck.

 

[SuperCarGoals]

Welcome SuperCarGoals.
I drive a BMW Z4 with an M type engine and handling. It is fun for me with top down driving all year long. Have tracked it a few times, getting up to 145 mph on the straightaway.
Used to dream about a Lambo, but can't swing it with other Entertainment and Travel budget competition.
Good luck.

Thanks Dtail!

I owned an S52 M Roadster in Estoril Blue when I was younger - and love the Z4!

If I don't have the cash flow for the "Rari" or Lambo - yes, my wife's travel aspirations will likely come first

 

[SuperCarGoals]

OK, I see. But I will tell you that those track days are like kissing your sister compared to really racing. In fact I'm surprised more people aren't badly hurt when they cook the brakes on their street cars. I like real race cars, competent and licensed guys to race with, corner workers, and ambulances standing by.

Autocross that Cayman. You'll be a changed man.

Did you really have to make me visualize kissing my sister. Thanks!

I am thinking about autocrossing the Cayman!

 

[Amethyst]

OMG haven't heard of autocross in decades. Used to participate in my 1986 Toyota MR2. Our "track" was in the parking lot at work. Unfortunately, the fellows who really kept the club running, retired, and nobody took their place. (I was the club chronicler - put out the monthly newsletter - but running a club is not in my genes).

When we lived in the UK, we saw an amazing number of exotic cars - Ferraris, Lamborghinis, Maybachs, Aston-Martins (of course). We felt kind of sorry for these cars, as it is quite difficult for them to show their paces anywhere in England. Perhaps the owners took them over to Germany now and then to let them really run

But the good news is that you don't have to wait to have some car fun. Find some autocross competitions in your area. These "parking lot grand prix" events are driven in your street car and are a great starting point. From there you can move into serious amateur racing (the primary organization is SCCA) to develop your skills and to test your capabilities. I went thorough that progression with a mid-level budget, probably spending well north of $100K, and haven't regretted a minute of it.

I'm already retired and could buy any of the exotics for cash but wouldn't consider such a waste. I recently sold a Mazda RX-8 and bought a Soob WRX. Both of them have plenty of capability to deal with any street driving situation though the Soob does have more horsepower than is really necessary. For fewer doors, a Miata or a Honda S2000 are pretty good and fun street solutions too.

 

[Travelwanted]

I have actually owned an S2000! And quite a number of other “fun” cars. Currently in a Cayman.

Haven’t done SCCA, but have been to a performance driving school and hoping to book a Porsche track experience in Atlanta this year.

I’ve been a car enthusiast since I was little. So this is more of a childhood dream... not something that I deem to be permanent.... and only something I would do if I had the cash flow.

So perhaps a lease here and there of various Super Cars... no long term commitments.

I'm a car guy also.

Definitely do the porsche driving experience in Atlanta. I did it and it was incredible. Ironically it made me want another 911 less. I drove the sh*t out of a cayman s and had a blast. But, no way you can drive like that normally.

A few years back I had a 911 turbo. Total beast of a car. To be honest, it was too much IMHO. The thrill wore off quickly. I have had more satisfaction owning M3/M4s.

I toyed around with getting a California but again, felt the idea of owning it would end up being better than actually owning after about 6 months. My suggestions is rent one before you commit.

 

[MRG]

You bought too many Raris along the way?

If Rari is similar to recession I'll go along.


Seriously, DW had a couple of faster cars, MR2 turbo and a Nissan 370. They were both more than enough for someone who grew up with the notion of the gas pedal being a binary object. Actually DW wanted me to keep the Nissan as a summer daily driver on I-70. No way!

I lost a couple of friends due to speed in hipo cars. RIP Mike, Chris... you are missed.

 

[SuperCarGoals]

If Rari is similar to recession I'll go along.


Seriously, DW had a couple of faster cars, MR2 turbo and a Nissan 370. They were both more than enough for someone who grew up with the notion of the gas pedal being a binary object. Actually DW wanted me to keep the Nissan as a summer daily driver on I-70. No way!

I lost a couple of friends due to speed in hipo cars. RIP Mike, Chris... you are missed.

12 years seems like a very short time for me to basically generate $3MM+

That sounds absolutely insane to me.

I'm sure we're in for a correction between now and then... but a boy can dream can't he

My plan is to keep this post alive every so often.... Hopefully you guys will see me in a "Rari" instead of an "Esta" in 12 years.

* Esta - as in Ford Fiesta. Yes, I am funny.

 

[SuperCarGoals]

I'm a car guy also.

Definitely do the porsche driving experience in Atlanta. I did it and it was incredible. Ironically it made me want another 911 less. I drove the sh*t out of a cayman s and had a blast. But, no way you can drive like that normally.

A few years back I had a 911 turbo. Total beast of a car. To be honest, it was too much IMHO. The thrill wore off quickly. I have had more satisfaction owning M3/M4s.

I toyed around with getting a California but again, felt the idea of owning it would end up being better than actually owning after about 6 months. My suggestions is rent one before you commit.

I have not yet owned an M3 - but it is on my list, and probably the car that I would want if I had to have a 4-door.

I am planning on the Cayman S Manual in Atlanta... I only have a "base" Cayman with PSE right now, but it's pretty peppy... interested in seeing what the S will be like.

 

[OldShooter]

... I'm sure we're in for a correction between now and then...

If a correction happens in the first 8-10 years it will probably not have a long term effect on you UNLESS you don't have the risk tolerance to sit tight and ride it out. Copilot Checklist: Sit down, shut up, and hang on.

... I am planning on the Cayman S Manual in Atlanta... I only have a "base" Cayman with PSE right now, but it's pretty peppy... interested in seeing what the S will be like.

Absolute speed doesn't matter, it's how the car is dealing with track. I have had a much higher pucker factor driving a showroom stock Mustang through a particular corner at 110mph than I have had at 160mph, same corner, in a Formula Super Vee. Speed alone is fairly boring. I used to look forward to the straightaways as a time to relax a little. That's actually why autocross can be so much fun even though the numbers on the speedometer are not big.

 

[SuperCarGoals]

If a correction happens in the first 8-10 years it will probably not have a long term effect on you UNLESS you don't have the risk tolerance to sit tight and ride it out. Copilot Checklist: Sit down, shut up, and hang on.

I've been pretty diligent in the "sit tight and ride it out department," and would likely keep plugging away as I did during the 2008 timeframe. Come to think of it, I don't think I've ever sold any of the mutual funds (aside from doing some rebalancing/transfers).

I haven't really thought much about specific asset allocation, but as I get closer to my number/ER timeframe, I will probably pay more attention to the market and may need some help coping at that time

 

[corn18]

I have been toying with an exotic for a while and decided to get a Z4M to dip my toes into it. Took it to autocross and that was fun but 40 sec of sheer terror was not my thing. Went to a track day event and that was fine but I was scared to push anything and get the car messed up. And daily driving was truly boring. Now I drive an Acura for the comfort and convenience.

I think where I am at now is looking at a track car. Maybe a $75k track day car that I can enjoy pushing to the limit and not worry about trashing a $250k car. We'll see.

 

[street]

I'm not a car person and for me I just need something with wheels on it to get me from A to B. LOL I do enjoy looking at these fat rides but I would never spend that kind of money on a ride.

 

[38Chevy454]

Welcome to the forum. Nice to have goals, it helps to maintain the savings and focus to the end. Your house equity does not really count for income producing savings, as you need a roof over your head and the house does not in itself generate income. It may if you sell and capture appreciation in value, but otherwise it gives you a place to call home.

I am a car guy, but all of mine are old hot rod type. Just not into newer stuff although I like to read about them and can appreciate the performance. I did do a little autocrossing in college, the club on-campus put a few events each year. But my V8 swapped Vega (nice practical college car, hahaha) was not exactly prime autocross material. It was fun though, especially beating other supposedly more handling cars. Extra hp helps. About the closest I might get to later model performance is my latest thoughts about a CTS-V. Otherwise it is 30's-60's stuff that fills my garage.

The only potential wrinkle in your plan I can see is if you don't get the returns you project. 12 years is fairly long term, so a shorter duration drop in market should be recoverable. A longer term might not. Of course none of us can predict the future and a catastrophic event like medical issue could cause a revision to your plans. But plan for the best you can and strive toward that goal.

 

[SuperCarGoals]

I have been toying with an exotic for a while and decided to get a Z4M to dip my toes into it. Took it to autocross and that was fun but 40 sec of sheer terror was not my thing. Went to a track day event and that was fine but I was scared to push anything and get the car messed up. And daily driving was truly boring. Now I drive an Acura for the comfort and convenience.

I think where I am at now is looking at a track car. Maybe a $75k track day car that I can enjoy pushing to the limit and not worry about trashing a $250k car. We'll see.

That is kind of where I am now. I do have a paid off entry level Lexus SUV to haul the family around in comfort. The Cayman is a lease so I don't feel as attached to it but MSRP'ed around $75k range... and hope to have a little fun with it.