bad news

[DeBenGuzzi]

Asking a bike forum for finance advice is...touchy. I'd have to say I wouldn't take a loan against your retirment for a toy, but it's all you in the the end. I'd stick with the dual sport beater plan myself. That way, if something happens again (let's hope not) you won't be upside down on yet another toy.

TRUE words spoken and I'm leaning that way, The only thing I got going the other way is I'm only young once and for so long I have plenty of time to build my retirement and its not gone just repaid over time and its my first real off in 10 years but that doesn't mean a whole lot I could crash again tomorrow my fault or not but best not to think about it that way either or who would even ride? It does seem like a stupid idea but I wouldn't ask just any forum for finacial advice most of you have twice the experience I do in all matters and I wouldn't take the advice of one person alone well maybe Jaap or JRT but defiantly not BFG.

[pete roper]

WELL ok, in a perfect world yes, or if I had your money, but how about in the more realistic world?

 

Um?? Ben. I'm not 'Rich' by any means. I am comfortably off, ie I'll probably never go hungry again, but the reason for that is precisely because I DIDN'T do things like borrow money for toys when I was younger. To me that is a very 'Realistic' piece of advice. My Griso 1100 purchased in 2006 was my first new motorbike. I was fifty then. Prior to that I'd never owned a bike under three years old and for the best part of a decade in the eighties and early nineties I couldn't even afford to register a bike for road use, well I could of but it would of meant taking out a loan. Something I wasn't willing to do. Surely if nothing else the financial melt-down of a couple of years ago proved anything its that you can't live on credit.

 

Pete

[The Monkey]

Good advice Ben. Respect to this forum.

Never pay interest on an asset that devalues

[belfastguzzi]

maybe Jaap or JRT but defiantly not BFG.

JRT! JRT! But he's.... American.

 

I see that Pete has posted pretty much what I was going to respond with. I.e. I never took a loan until I was near enough 50.

 

I bought a CZ 125 brand new once (when I was about 20?) but apart from that, I haven't had a brand new vehicle until recent years. The MG V11 Scura.

 

I did take out finance to buy a second hand bike just before that, having deliberately avoided such a purchasing route all my life. But then I haven't been pursuing a career or a profession and have brought up a family in circumstances that most people would not choose. Strangely, having got past 50 and with the huge expenses of putting children through universities in various places, I seem to have decided that it's now time to take out finance and spend some money on myself, buying a new bike, er, two new bikes. I somehow have to find time to keep the family's various cars on the road and I don't have time to be working on older bikes. Hence the decision to spend the money and buy new to give a trouble-free ownership experience: oh, cough, choke...ahem. Hence decision to buy a 2nd new bike after buying new Griso.

 

Anyway, this is all personal stuff that we do for our own reasons. Of course I do wonder: what if I had taken a different approach, taken out big loans to fund a more comfortable/normal lifestyle, bought into a pension to retire on, etc, etc..?

Being past 50, with a chronic illness/disease lurking in the background

and my younger brother in Sydney being diagnosed with pancreatic cancer

and the regular thought that when he was at the age that I am, my dad was at death's door, completely crippled with asbestosis

I have taken the view that a little bit of short term finance on a motorbike makes a sort of sense.

I wouldn't take out a loan on a new kitchen though!

 

Weird thread. I suppose I'm just writing to say, there's more than one way to do things and personally I like to see other people saying that we shouldn't be living on loans as if it's the only and the necessary way to live. Usually, in the past anyway, it's generally assumed that we should be living beyond our means and living other people's dreams. Cheers to those of you who think otherwise and live otherwise.

 

JR! What time is it?

[Admin Jaap]

Ben, I am definetely not the guy to ask advice on loans. I never applied for one, because being self employed the intrest rates I would get are ridiculous.

FWIW, I was brought up to work hard and save money if you really want something.

[jrt]

BFG is right. I'm an American!

Kind of....

Actually, I'm from Texas and I'm not sure whether that's better or not.

 

Seriously, I'm ok, but not great, with money. I'm lucky to have a wife that is a) sensible and makes a lot more money than I do.

But, it is a bad idea to borrow against a retirement fund. You're putting money into it right now, it's going to be earning interest and MORE IMPORTANTLY compound interest for you. If you devalue that, then you effectively take a loan out at about three times the interest rate. First you pay the interest, second you reduce the amount going into retirement and third you reduce the capital that the retirement interest is working on.

Even Albert Einstein is reputed to have said that the most powerful force in the universe is compound interest.

The Monkey is far more succinct than I am.

 

I took loans out at earlier years than Pete or BFG, but they were small (~$1000) and aimed to improve my credit rating. My first 'new' bike that I took a loan on was a V11. Come to think of it, that's still the only one.

You will have a great time on KLR. Pay cash, put around on it and don't look back. Sure it's slower, but I really liked mine.

 

Belfast, it's time to raise a drink I'll have one in honor (honour?) of your brother and to his health- and yours.

[DeBenGuzzi]

BFG is right. I'm an American!

Kind of....

Actually, I'm from Texas and I'm not sure whether that's better or not.

 

Seriously, I'm ok, but not great, with money. I'm lucky to have a wife that is a) sensible and makes a lot more money than I do.

But, it is a bad idea to borrow against a retirement fund. You're putting money into it right now, it's going to be earning interest and MORE IMPORTANTLY compound interest for you. If you devalue that, then you effectively take a loan out at about three times the interest rate. First you pay the interest, second you reduce the amount going into retirement and third you reduce the capital that the retirement interest is working on.

Even Albert Einstein is reputed to have said that the most powerful force in the universe is compound interest.

The Monkey is far more succinct than I am.

 

I took loans out at earlier years than Pete or BFG, but they were small (~$1000) and aimed to improve my credit rating. My first 'new' bike that I took a loan on was a V11. Come to think of it, that's still the only one.

You will have a great time on KLR. Pay cash, put around on it and don't look back. Sure it's slower, but I really liked mine.

 

Belfast, it's time to raise a drink I'll have one in honor (honour?) of your brother and to his health- and yours.

I really do respect all your point of views you've never steered me wrong I've been living beyond my means for too long I'll put that KTM out of my mind for another year or two and just get the KLR for cash money with basic liability and black rattle can spray paint

it is interesting to see how other people and cultures look at financing and purchases in my mind I'm only young so long and I'll be old for a long time with the much harder ability to ride a motorcycle so I'm still torn but I should start making the more sensible decisions I'm 30 now and I'd have to take out about 6-8 grand from my 401k which only has 20 in it, BUT thats after only 3 years of contributions not bad I say. I know I can be happy on the KLR better bikes will come my way eventually.

[DeBenGuzzi]

Good advice Ben. Respect to this forum.

Never pay interest on an asset that devalues

like my HOUSE???? ha paid 184k still owe about 178k and the taxes tell me its worth 139k and if I tried to sell it probably more like 115k thats just AWESOME.

[gstallons]

99% of the things a man will purchase in his lifetime will depreciate. I would not let (a loan) that stand in the way of me buying another motorcycle.

 

 

[DeBenGuzzi]

99% of the things a man will purchase in his lifetime will depreciate. I would not let (a loan) that stand in the way of me buying another motorcycle.

well yes but I still feel like cutting into my retirement savings to do it isnt the best idea, I also wonder how much I'd lose being so early vested and paying it back with interest if it would come close to evening out at all I don't do numbers very well anymore I should call my accountant friend. I think I should save that option for a last resort move like lose the house or my wife van explodes, I'm torn but I will do the responsible thing and lay off having a loan for a couple years. put that money towards finishing off my credit cards and maybe my car. Once those are gone I can get that super duke or even the SMT or maybe a Stelvio!!!

[DeBenGuzzi]

yeah its decided everyone agree's get the KLR and get my life back together before I go out and buy something on the side of stupid SOME would say having a motorcycle is on the side of stupid but those would be borish wankers.

[jrt]

Yeah, well, almost everyone's house (in the US) has devalued. Be glad you aren't in Vegas (and my condolences to those that are).

 

I'm a young fart, not even 50 and I'm in no danger of slowing down the riding. There's folks on this forum and others that are well into their 80's. Look up a mister J.N. Smyth, for example. Also, I had an uncle who rode his Harley (no accounting for taste) to the family reunion at 78...

Point is, you got a awhile to go, yet and it only gets better. Don't be gettin' in a hurry.

[pete roper]

 

it is interesting to see how other people and cultures look at financing and purchases in my mind I'm only young so long and I'll be old for a long time with the much harder ability to ride a motorcycle so I'm still torn but I should start making the more sensible decisions I'm 30 now and I'd have to take out about 6-8 grand from my 401k which only has 20 in it, BUT thats after only 3 years of contributions not bad I say. I know I can be happy on the KLR better bikes will come my way eventually.

 

 

I didn't really start saving until I was about thirty and I too only really did so seriously because when we bought our first house, even though it only had a $75,000 mortgage on it, when interest rates went up to nearly 20% in the early nineties we came within a bee's @#$$#! of loosing it. That convinced Jude and I we would NEVER go into debt again. We paid off the mortgage on that house a couple of years later and bought the econd one for cash a couple of years after that. we do though live a very 'frugal' lifestyle comared to what most US citizens consider 'Normal'. Or hous has one bathroom and a separate dunny, no en-suites. No big plasma TV, crappy old computers, (Hey, they do what we need them to do.) no boats or planes or other *serious* toys. We have nice but unexceptional vehicles, (Apart from my collection of 'Oldies' I own the 8V Griso and an Aprilia Mana but usually drive a big, white, serial-killer van. Jude has a VW Eos we're about to turn over.) We own no stocks and shares but we do now own three houses, they are our superanuation fund. We're probably about to buy a forth. Apart from that our only 'Luxury' is that we love travel and like to take an expensive foreign holiday every couple of years and make sure that our kids don't starve and can afford to study where and what they like. We also hang our clothes on the line to dry, rarely go out for eats and buy our clothes from 'Working Gear' type shops or, in Jude's case, department store sales. Saving money isn't that hard but you have to 'Do Without'. Thing is you soon discover that most of the stuff you are 'Doing Without' is worthless crap that isn't worth having!!!!

 

The reason why we have what we have now is simply because we DID start saving when we could. Yes, our parents are dead and we did inherit some money but we were already secure before that happened. To my mind puting a 'New' bike on the back-burner now will pay dividends not only for your future finances but your long term security in terms of home, family, the lot, (well, all the *Important* things.). Of course there is always a gamble. You, (Or I, or any of us!) could find out tomorrow we have some sort of repulsive, incurable didease and we'll never get to enjoy our retirement or the benefits of our past frugality. Well, sometimes shit happens, but for most people it doesn't. The odds are good that you'll live a full and active life and enjoy yourself well into your seventies. I certainly hope to.

 

KLR's are a good tool. You can have enormous fun on something like a KLR! No, it won't attract admiring glances from your neigbors and the Wimmins won't jump you, (Mind you I've never been jumped because I was on/with ANY motorbike! ) but who cares about that shit? You ride a motorbike for YOU not for anybody else. In ten years time you'll be well on your way having a decent nest-egg for retirement, your house will probably be paid for and your disposable income will become 'Disposable' again. You'll only be 40, the US ecconomy will almost certainly of recovered by then and as long as you haven't done anything monumentally stupid, (Like getting divorced!) you'll be able to buy as many new bloody motorbikes as you want!!!!!

 

Pete

[DeBenGuzzi]

to be fair I did have women want to jump on the Aprilia because it was sex on wheels but not jump "me" just the bike, didn't hurt that the rear seat and the rumble of the bike stimulated their girly bits, or so I was told. GOD I miss that bike so much right now the weather has been phenomenal, I do sometimes worry I won't get to enjoy my retirement a lot of the beer delivery drives are near cripples when they retire the job is hard on your body for that long and I too don't have anything fancy a small modest house with 1 real bathroom a 2 year old computer thats can't do much anymore I just for the first time EVER got a phone that can do more than just make calls (an iphone) that I got refurbished not even new I don't go out or buy fancy clothes for the longest time all my money went to my motorcycles cigars and my kids I've cut back my cigar and motorcycle spending in the last couple years and been working on my debt my one credit card I have was at 9800 at one point not even 2 years ago, today its at 3300 so I'm almost there in a lot of ways, my cars have all been old almost beaters till I had my third child and needed room plus reliability so bought my first new car at 28, I hate being in debt but never minded when it came to motorcycles

[Skeeve]

[quote name='pete roper' date='01 November 2010 - 07:09 PM' timestamp='1288663753' Our house has one bathroom and a separate dunny, no en-suites.

 

That makes more sense if you're living in a one-holer: that way, if someone is tying up the bath, anyone can still get access to the bog...

 

KLR's are a good tool. You can have enormous fun on something like a KLR!

 

KLRs are fine, but I'm still more of a DR650 fan. Slightly better off-road, w/o enough of a hit to the on-road perf to matter [unless you're planning on riding round the world; then some of those long high-speed empty stretches you'll want the KLR's higher top end...] Either way, hard to go wrong. If my '99 SV wasn't darn near worthless now [