Quote:
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Originally Posted by Neal Stevens
Quote:
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Originally Posted by SUBMAN1
An example of just how bad credit is, simply take a car payment. The average US car payment is $400 a month. Do you know that if you paid yourself $400 a month for 40 years straight into a decent mutual fund that this would add up to $4.5 Million dollars at a normal return on investment of 12%? That car you have there must be a pretty nice car for $4.5 million!  The car companies know this, but would rather not tell you because they want that 4.5 million in their pocket, not yours! Hope you like the car! |
Lol, that would be a dandy car, if you paid $400 a month on it for 40 years, as you suggested  |
That's the point. If you paid yourself $400 a month for 40 years (assuming no interest, nothing), that would equal $192,000 car. If you however invested it in a mutual fund - the exact same $192,000 out of your pocket would then be worth $4.5 Million, and you could buy yourself over 23 times over of the exact same CAR!!!! This is for the same $192K out of pocket total expenses.
-S