Its all in how you want to look at it... We left money in the bank making 4.5% to buy the GS a motorcycle, $500 down @1.9%. Pay extra and save some. If your budget can handle it, then leave your savings get 5%, borrow 7%.. So loosing 2% a few years.
You may be confusing things I said. I'm considering a Tacoma to replace my old 4Runner. But similar issues. The 2025 Tacoma with hybrid is stupid expensive, and it doesn't get good gas mileage. As you may know, the hybrid feature appears to be purely about gettting extra torque for towing or rock crawling. I hadn't heard anything negative about the turbo, but in any event, I can't afford a 2025, so a 2024 it would be for me. Tacoma, that is.
I know that all cars will eventually become too expensive or too difficult to repair. I've made it my practice to wait until that time to replace them. It's not as convenient, but it saves a ton of money in my experience.
Heh, heh, yeah I picked up on that as well. I bought a brand new Corvette for $5K. Of course, that was in 1970, so a few things have changed since then. Inflation is insidious and you often don't notice it - until you do.Did you ever think there would come a day when you said I'm looking to purchase a new car, nothing fancy, let's say 50k!
It's not just jumping through hoops to get parts or find someone willing to work on old vehicles, it's the increasing frequency of repairs and cost, not to mention the risk of getting stranded somewhere, potentially off the beaten path. I use the 4Runner for camping trips and such, not just trips to Home Depot.
Best source for reliability of used cars is Consumer Reports. You can see a copy at your local library. I think the main "car" issue is back 2 or 3 months. I'm always amazed when I open the page that has mostly Toyotas and the pages are mostly all "green" boxes (the best reliability). Other pages (Chrysler, for instance) are more red (bad) than green.
I'm a subscriber to CR, and I use it often. I know, I know, a needless expense when I could just as well view it at the "local library." I am such a spendthrift.
I'm a little confused about why this HYSA isn't being (or hasn't been) replenished in some form or fashion all along. Do you not move money into it from your current salary/income on a regular basis? And what about investment income— like dividends, interest, and cap gains distributions—in your taxable accounts? Do you not direct those into your HYSA or other cash-like vehicles such as a MM mutual fund (SWVXX, VMFXX, etc.)? If not, I suppose I would ask "Why not?" IMHO, a sustainable, automated process that replenishes your spending account(s) is a key part of any successful FIRE journey.
I really appreciate the concrete advice. Only recently did I turn the DRIP off in my taxable. That was 17k in dividends last year. I'm inclined to leave the Roth untouched at this time, because it's likely I will be contributing to it with conversions anyway. The tIRA and 401k have enough in them that FIRECalc shows that without a further paycheck I could continue living the baseline lifestyle that DW and I have been accustomed to. The thing is, our fairly recent change in lifestyle, moving from the urban condo to a suburban fixer-upper-ish 1960s house, has thrown the budget into disarray with all these so-called lumpy expenses. And this vehicle purchase has been looming for some time.
That has been (or had been, until this thread got me reconsidering) my thinking, too. First new car in many years and may very well be my last car purchase ever. I was thinking that the experience of ordering one to my specifications would be a treat. But maybe I'm not set in my finances enough for a treat just yet.
Depends.
The cash account hasn't been replenished "all along" from dividends, interest, etc., because it didn't need to be and because I reinvested, as is common for people still working. In other words, while I was fully employed, the paycheck was enough, and dividends and interest were reinvested. The few not on a DRIP I think I reinvested in IVE (S&P fund). When I started winding down my work, I increasingly drew from the cash account to make up any shortfall as monthly expenses came due. In that respect, you're absolutely right that I probably should have stopped reinvesting everything at least four or five years ago. But it was hard to tell myself to stop reinvesting. This state of semi-retirement, or more like "barista FIRE," is challenging. My mind isn't sure whether to think like a retiree in the decumulation phase or like a salaried employee still accumulating.
+1. Been leasing luxury cars for over 40 years. Just the cost of living, like the electric bill. Plus you get more car for the money.
