Here is a simple formula to use in deciding: The cost of the repair divided by the monthly cost/payment of a new car times the best guesstimate of how long the repaired car will go before needing another major repair. Example: Car is worth $4,000 - repair is $1000, new car payment is $300 (low) - car should run fine another 6 months -- A new car would cost $1800 for the 6 months while the old car only cost $1000. This leaves out the higher insurance costs on new car so the break even is even shorter. I never take into account the current market value of the car - just its expected utility.
Be aware that there is a big difference between a financial adviser and an investment adviser. I know a person who inherited a million dollar equity portfolio and needed money for day to day expenses (they are unemployed). The investment adviser at a large brokerage first offered a margin loan and then when the borrowing limit was reached offered to convert the equities to Treasuries to increase borrowing limit. The client did so and is now paying 11% on the margin loan to “own” Treasuries paying 4%ish. They don’t want to “give up” their inheritance. Financial literacy is harder and harder to find these days. On the cynical flip side, since I own shares in the entity offering the margin loan in my mutual funds, I am indirectly benefiting from financial illiteracy. Weird position to find oneself.
My sibling decided to switch from managing his own money at Fidelity to using Fisher Investments to manage his Fidelity assets. FI promptly sold all of his mutual and etf funds and bought 70 plus individual stocks. When I asked how the portfolio was doing compared to a passive index my sibling responded not as good but didn’t care because s/he did not want to manage the money. On top of it, s/he was surprised to learn FI was charging AUM fees even assets in the money market account. This sibling has a propensity to fall for minor scams and I have given up on trying to have him/her change course. Go figure, to each his own. Obviously, it could be an issue if s/he runs into financial difficulties in the future.
As the owner of two Audis I would advise you not to keep them to the wheels fall off. In my experience, Audis are very expensive to maintain and repair. They are nice but I don't think they are built to last.
If Bitcoin is truly a "store of value" then that too should be in a portfolio.
I personally won't touch it but to think that a pizza was bought for 5050 BC in the early days and they are now worth $450,000,000 is enough to drive one crazy.
"Also, there are many foreign brands that are critical to my survival. Heineken, Nestle, et.al. Need to keep them afloat!"Unless you bought these stocks at the IPO your owning them does not affect their survival at all - the company does not receive a penny of the purchase price. The same is true for all stock purchases that do not come directly from the company. We are not truly investing in the company in the sense we are capitalizing it like venture capitalists, we are simply buying previously issued shares in the hope/belief that the company will increase in value over time.
You are not married to your plan in NY and a couple of other states. You can switch plans without medical underwriting and no difference in premium then if it had been your original plan. Very few people are aware of this.
Comments
Yes, but post the new collision premium on new car compared to old car, if it even had collision coverage.
Post: How have you decided when it’s worth it to fix an old car?
Link to comment from May 25, 2025
Here is a simple formula to use in deciding: The cost of the repair divided by the monthly cost/payment of a new car times the best guesstimate of how long the repaired car will go before needing another major repair. Example: Car is worth $4,000 - repair is $1000, new car payment is $300 (low) - car should run fine another 6 months -- A new car would cost $1800 for the 6 months while the old car only cost $1000. This leaves out the higher insurance costs on new car so the break even is even shorter. I never take into account the current market value of the car - just its expected utility.
Post: How have you decided when it’s worth it to fix an old car?
Link to comment from May 25, 2025
Be aware that there is a big difference between a financial adviser and an investment adviser. I know a person who inherited a million dollar equity portfolio and needed money for day to day expenses (they are unemployed). The investment adviser at a large brokerage first offered a margin loan and then when the borrowing limit was reached offered to convert the equities to Treasuries to increase borrowing limit. The client did so and is now paying 11% on the margin loan to “own” Treasuries paying 4%ish. They don’t want to “give up” their inheritance. Financial literacy is harder and harder to find these days. On the cynical flip side, since I own shares in the entity offering the margin loan in my mutual funds, I am indirectly benefiting from financial illiteracy. Weird position to find oneself.
Post: The Silent Compounding Cost of a 1% Fee
Link to comment from May 18, 2025
My sibling decided to switch from managing his own money at Fidelity to using Fisher Investments to manage his Fidelity assets. FI promptly sold all of his mutual and etf funds and bought 70 plus individual stocks. When I asked how the portfolio was doing compared to a passive index my sibling responded not as good but didn’t care because s/he did not want to manage the money. On top of it, s/he was surprised to learn FI was charging AUM fees even assets in the money market account. This sibling has a propensity to fall for minor scams and I have given up on trying to have him/her change course. Go figure, to each his own. Obviously, it could be an issue if s/he runs into financial difficulties in the future.
Post: The Silent Compounding Cost of a 1% Fee
Link to comment from May 18, 2025
As the owner of two Audis I would advise you not to keep them to the wheels fall off. In my experience, Audis are very expensive to maintain and repair. They are nice but I don't think they are built to last.
Post: My Mistakes by Jonathan Clements
Link to comment from February 26, 2025
Selling and buying makes this strategy an actively managed index fund, no?
Post: One Stock at a Time
Link to comment from February 26, 2025
If Bitcoin is truly a "store of value" then that too should be in a portfolio. I personally won't touch it but to think that a pizza was bought for 5050 BC in the early days and they are now worth $450,000,000 is enough to drive one crazy.
Post: Stuck at Home
Link to comment from November 24, 2024
"Also, there are many foreign brands that are critical to my survival. Heineken, Nestle, et.al. Need to keep them afloat!" Unless you bought these stocks at the IPO your owning them does not affect their survival at all - the company does not receive a penny of the purchase price. The same is true for all stock purchases that do not come directly from the company. We are not truly investing in the company in the sense we are capitalizing it like venture capitalists, we are simply buying previously issued shares in the hope/belief that the company will increase in value over time.
Post: Stuck at Home
Link to comment from November 24, 2024
What makes you think we are not already fending for ourselves? I certainly feel that I am.
Post: Quinn ponders – Are you better off than you were four years ago?
Link to comment from September 21, 2024
You are not married to your plan in NY and a couple of other states. You can switch plans without medical underwriting and no difference in premium then if it had been your original plan. Very few people are aware of this.
Post: Medigap pricing question
Link to comment from September 11, 2024