Author Topic: Do you ever get "The Look"?  (Read 21428 times)

sequoia

  • Bristles
  • ***
  • Posts: 407
Re: Do you ever get "The Look"?
« Reply #50 on: September 09, 2017, 10:27:10 PM »
I work from home and most of the time I can control my work schedule. When my son was in pre-K, I sometime went to pick him up in the afternoon. The parents, mostly moms, and grandparents would all line up in front of the class. The first few times I pick him up, with my un-shaved face, t-shirt, shorts and sandals, everyone were giving me the look. Does this guy have a job or he just stay at home all day lol...

Another time I got the look was years ago when I tried to buy a car for my wife at dealership. They had the car that she wanted. I was asked if I need financing, and I said nope. While inside the office I notice they sent someone to check out my current car. Someone was looking into the windows of my car, they probably did not realize I was watching them. I drove an old Oldsmobile, so I probably was not their typical customer. They then gave me a run around, so I left. We ended up buying the same car somewhere else, which turn out to be several grand cheaper, so winning! I told my wife, I really wanted to drive her car to that dealership and show it off to that dumb salesman.

Adventine

  • Handlebar Stache
  • *****
  • Posts: 1175
  • Age: 28
  • Location: Manila, Philippines
Re: Do you ever get "The Look"?
« Reply #51 on: September 09, 2017, 10:48:33 PM »
I got The Look from a friend who was asking for advice after getting her first ever credit card. She asked me how soon I thought she could ask for an increase in her credit limit. I casually said, "Oh, the credit card company will increase it automatically as long as you always pay the bill in full and on time. That's how I got to have a credit limit of _____."

Turns out her own credit limit was about 10% of mine...

secondcor521

  • Handlebar Stache
  • *****
  • Posts: 1170
  • Age: 48
  • Location: Boise, Idaho
  • Big cattle, no hat.
    • Age of Eon - Overwatch player videos
Re: Do you ever get "The Look"?
« Reply #52 on: September 09, 2017, 11:45:48 PM »
Rarely any more, since most of my social circle knows I'm retired early.  My money is mostly at Vanguard and they're not impressed with my stash.  The local bank where I sometimes deposit checks and I have an understanding that I like to keep a low profile; I've made it a point to get to know the branch manager in case I ever need a favor, and she's very professional and just takes care of business.  Even if I don't get Looks, it's almost more fun for me to bop around town in jeans and a ratty sweatshirt and be in Stealth Wealth mode.  I find the surreality of it to be enjoyable, although after two years or so I'm mostly used to it.  That is, it doesn't seem weird to not have to go to work.

Every so often I'll run across someone new, and since I'm not shy about my FIRE status, I usually get the "You're too young to retire!" or "Good for you!"  But I'm pretty matter of fact and don't even check to see if they're giving me a Look.  It's more like a flowchart for me:  If they're surprised, then explain briefly.  If they seem envious or interested, then encourage them and offer a few generic pointers.  If they seem doubtful, ignore their doubt and go on with my life; I don't care if they believe me as I believe myself.

Sometimes if I want a Look from someone I'll drop some fact about myself that is surprising, but nobody, not even my family, knows my financial status.  I learned from my ex that it is easier to keep that info to myself, especially from my parents, so they would stop giving me advice and hovering and worrying over (at that point our) status.  Even after the divorce it seemed like a good idea so I keep doing it.  So I'll mention that I played the bagpipes for 20 years, or I'll mention that I've donated 33 gallons of blood products to the Red Cross, or completed an Oly distance triathlon, or whatever.  Now that I think about it, doing this only gets me a Look maybe a third of the time.  Oh well.
Like Overwatch?  Check out this YouTube channel:  http://bit.ly/AgeOfEon

JLR

  • Bristles
  • ***
  • Posts: 455
  • Location: Australia
Re: Do you ever get "The Look"?
« Reply #53 on: September 10, 2017, 01:57:17 AM »
I got "The Look" over the phone the other day.

We have been renting in the 'fancy' area of town for the last few years (the rent was a good deal). The owner has decided to sell and for us to rent anywhere else would be a 20% increase on what we are currently paying. So, we're in the process of buying a little place on the other side of town (costing 25% less than the place we are currently in is selling for).

One of our friends said to make sure the people living there are the moment remove their burnt out cars from the front before they leave - really it isn't that bad!

Anyway, the other day the pest inspector called to give me his report verbally before sending it through. He was giving me all the info, etc and it was all going well. Then I asked how often the current owner (a landlord) had been getting it inspected. He said every three years, that the cost could be claimed on your taxes, and that he could do a deal for us so we could also claim the cost of getting our 'fancy' house inspected and claim that against the investment property, too. It was then I realised he thought we were purchasing as an investment. "oh no, we plan to move in to that house", I said. He was completely shocked that someone would move from the 'fancy' part of town into our new purchase, but I think it will be just right for us.

The other best time we've gotten "The Look" was when my husband was haggling hard for our 'new' car. He was calling between two dealers - one interstate, and the other a 10 hour drive from us. When he decided he had the best deal we were going to get they said they would transfer his call to their finance department. "No need", he replied. "We will send the full amount through to your bank account". They were so cut to miss out on the loan interest they tried to charge us for the shipping, but we held our ground and got it for no extra.

Shinplaster

  • Handlebar Stache
  • *****
  • Posts: 1010
  • Location: north of the 49th
Re: Do you ever get "The Look"?
« Reply #54 on: September 10, 2017, 09:16:08 AM »
I find it amazing that people my age (fifties) still finance cars and other smallish purchases.

We're in our sixties, and it's even more amazing the number of people our age that have to finance everything.  We've got friends still financing appliances, cars, etc.  We just had a new furnace/a/c installed.  Rep started offering us payment terms, asking if we wanted it added to our monthly gas bill, etc.  She was sort of stunned when we just said we'd pay for it all at once.  Oh, and since they allow you to put it on a credit card, we'd do that too for the cash back.  She seemed genuinely surprised that we had the money, AND had the credit limit on our cards (which of course are always paid in full monthly).  Said in the last 50 furnace installations they had done, no one paid in full right away.  0_0

Same thing when we bought the car 3 years ago.  Salesman was shocked when we said we'd bring in a certified cheque or bankdraft, whatever he preferred.  He seemed really deflated he didn't get to give us the financing spiel.

When life shuts a door, open it again. It's a door.  That's how they work.

Zoot

  • Stubble
  • **
  • Posts: 230
  • Location: Atlanta (OTP)
Re: Do you ever get "The Look"?
« Reply #55 on: September 10, 2017, 10:49:38 AM »
Posting to follow.  This has to be one of my favorite threads ever.  :)

clarkfan1979

  • Handlebar Stache
  • *****
  • Posts: 1515
  • Age: 38
  • Location: Kauai & Denver
Re: Do you ever get "The Look"?
« Reply #56 on: September 10, 2017, 11:31:52 AM »
Recently I got my condo painted. I live in the HCOL Bay Area, and own a two-bedroom condo. I am a single woman Mustachian with no obvious signs of wealth, and I keep my bicycle in my living room.

The painter and I were talking about the job, and he said, "This place, you rent it, right?"

I said, "No, I own it."

His face scrunched up and he gave me "The Look" - as though he wanted to ask "How can that be? That does not fit into my understanding of reality, that a single, non-wealthy-appearing woman owns a very expensive piece of real estate."

I have gotten "The Look" at other times also. I usually get it when I mention that I own a condo, but I have also gotten it when I mention I am a computer programmer - somehow I do not fit into people's stereotypical vision of what a computer programmer looks like (i.e. young and male and high-salaried).

Does anyone else get "The Look"? I have a very low-key appearance and do not flaunt my wealth, educational, or career accomplishments in any way, which seems to lead strangers to conclude that I am not wealthy or successful.

After grad school, I got my first job in Florida. Part of the reason for the move was because of the housing market crash. I was in a hurry to buy a house before prices started going up. My parents also owned a vacation home near the University, so I was able to live at my parents house rent free for 6 months to save up for a down payment.

I started the job in August 2011 and closed on the home in January 2012. Most of my co-workers were cool with it and happy for me. However, one person did give me, "the look". Part of it was because they were higher ranking than me and didn't own a home. I guess it's not common for someone to buy a house during their first year out of grad school.

What many of them also didn't know was that it was actually house #2. House #1 was a rental that I bought in grad school. If I told my co-workers it was actually house #2 they probably would have shit themselves.

BlueMR2

  • Handlebar Stache
  • *****
  • Posts: 1807
Re: Do you ever get "The Look"?
« Reply #57 on: September 10, 2017, 11:52:14 AM »
Said in the last 50 furnace installations they had done, no one paid in full right away.  0_0

Reminds me of our HVAC replacement a couple years ago.  We signed the contract and they did the install without ever asking how we were going to pay.  I didn't think too much of it while I was waiting to be billed.  We'd made the deal directly through the owner of the company (he only works a few hours here and there these days, doing sales calls).  I didn't say anything specifically about out situation, but I suppose he figured us out looking back at it now.  The accounting department there, not so much.  We finally got the bill and I got "the look" from both people there when I walked over (in my jeans and t-shirt) to their shop and wrote a check for the full amount the same day we finally received the bill...

Goldielocks

  • Magnum Stache
  • ******
  • Posts: 4787
  • Location: BC
Re: Do you ever get "The Look"?
« Reply #58 on: September 10, 2017, 06:40:39 PM »
Oooh.. "the look."

I made the mistake and let slip a financial comment to my MIL..

Backstory -- about 8 years before, I had decided to 100% stop mentioning money in any way to MIL, because she would feel free to talk about how much she was buying / giving my DH's sister... and a lot of justification was because she had made up in her mind that she had provided X for us years before (not).  Never mind that we were frugal, were about 10 years older, and did not have half the stuff SIL had...   I finally said to her straight "I get stressed out when we talk about money and SIL, as long as you are happy with what you give her, and she doesn't ask us for money, we don't need to know"...  It worked like a charm.


So, my slip...   we bought a replacement car, a Toyota Highlander, about 8 years old.  I let slip that I was glad to pay cash because our tax return covered it.   She said something about having never seen a tax return that large in her life, and I mentioned something about RRSP's....   

and got "the look".   Apparently it is impossible to buy a car with money from a tax return, or to pay cash for a car before you are 50.   

Ah, well, I realized after, that FIL always had a large work pension and would have come straight off his paycheque, and taxes reduced immediately instead of at tax return time..  AND that they had never bought a used car before, so our purchase was likely 1/5 the cost of SIL's new minivan bought the same year.

jane8

  • 5 O'Clock Shadow
  • *
  • Posts: 8
Re: Do you ever get "The Look"?
« Reply #59 on: September 10, 2017, 07:44:08 PM »
Not necessarily mustachian, but early 40s single female, who is a frequent business traveler and has platinum status w/American Airlines. Solely b/c of said job. My job frequent includes in all weather conditions typically in a heavy manufacturing setting. . I'm often in jeans, steel toe boots and sometimes a bit dirty. I'll change my clothes if I'm like gross -- but definitely sometimes a bit dusty compared to the majority of my frequent flier peers. Preferred status on American allows one to board in an earlier boarding group and I swear  I get double takes in my outfits. 

Meh, they can all eat my steel toe dust.

SwordGuy

  • Magnum Stache
  • ******
  • Posts: 3358
  • Location: Fayetteville, NC
    • Flipping Fayetteville
Re: Do you ever get "The Look"?
« Reply #60 on: September 10, 2017, 07:45:14 PM »
Had a couple of hundred thousand dollars in our bank account from selling a house.  Hadn't moved it over to Vanguard yet.

I don't dress up on the weekends, particularly when I'll be working on refurbishing rental properties.  Then I'm in a painted-on t-shirt and jeans.

I went to the bank to get some cash and deposit some checks.   The teller did a double-take when the compared my appearance with my bank account balance!

------

One person at work asked me how our rental property business was going and how many houses we had.   Some other folks were there.

"Oh, we have 5 houses.  Plus the one we live in, too."

That was a surprise to a number of folks.


Lski'stash

  • Pencil Stache
  • ****
  • Posts: 503
  • Age: 30
  • Location: West Michigan
    • A Teacher's Journey to FI in the Mitten State
Re: Do you ever get "The Look"?
« Reply #61 on: September 10, 2017, 08:26:44 PM »
I remembered another from a couple weeks back.

I was working in my classroom the week before school starting, and the new Axa rep comes into my room to introduce himself (why Axa can wander the halls but no one else can I will never know). He says, "Hi. My name is so and so, and I'd like to talk to you about your 403b."

My response, " Your from Axa, right? I left Axa a few years ago for a feuciary. Unless you have a new 403b with rates under .4 percent, I'm not going to be interested. Thanks for stopping in."

He really had no idea what to do with me. I'm not sure he'd ever met a teacher who knew all of the options available.

SwordGuy

  • Magnum Stache
  • ******
  • Posts: 3358
  • Location: Fayetteville, NC
    • Flipping Fayetteville
Re: Do you ever get "The Look"?
« Reply #62 on: September 10, 2017, 09:31:48 PM »
My favorite "the look" was a good bit different.

We had been looking to upgrade our home to one that would better meet our needs once we retired from our day jobs.

Every time we spotted one we would note it down and keep track of them.  Some were on the market at crazy-high prices (at least by our standards) and others weren't on the market at all.  But they might be, and we were in no hurry.
We were looking for a great house for us at a great deal and willing to be patient.

About the time my mom got very ill (and I had to take a lot of time off from work to look after her), one of the houses we had been monitoring for several years came back on the market.  But this time, it was now a lot lower.  I felt, based on what I had been learning about buying property for the rental market, that they would be willing to go even lower, even down to what we were willing to pay for the property.

I wanted to get a mortgage but, with all the travel out of town to visit my mom in the hospital, I needed a mortgage broker who would go out of their way to work with us.   Our real estate broker (we had used her for 3 houses already) put us in charge with a local broker would would work off hours so we could meet with him.

I went by his office to check the report from the estimator.  He pulled up our offer for $227,400 and then opened up the estimate.

He did a triple-take and exclaimed, "Did you STEAL this!!??"

Our purchase price had come in about $97,000 below the property value from the estimator.

Score!



Romag

  • 5 O'Clock Shadow
  • *
  • Posts: 57
Re: Do you ever get "The Look"?
« Reply #63 on: September 10, 2017, 09:58:09 PM »
My favorite one was when I was doing mandatory transition briefings when I retired from the Army (at 45) and was asked "What salary do you need to make to maintain your lifestyle in retirement?"

I replied "zero dollars." Got a look.



dcamnc

  • Pencil Stache
  • ****
  • Posts: 504
Re: Do you ever get "The Look"?
« Reply #64 on: September 10, 2017, 11:47:29 PM »
The last memorable time I got the look was at my credit union. I went in to check on a heloc, just because. I was dressed in yard work clothes, pretty disheveled. The loan officer, I assume, was prob thinking that I was up to my nose in debt, judging by her tone and body language. We started going through the process, her asking the normal finance questions. Do you have any debt? Nope. What about your house? Paid for. Wife? Kids? Ex-wife? No, no, no. So you have no debt at all....? Nope. She just sat and stared at me. Her: Well, this should be an easy approval process.

skip207

  • Stubble
  • **
  • Posts: 171
  • Location: UK
Re: Do you ever get "The Look"?
« Reply #65 on: September 11, 2017, 01:58:35 AM »
I am told I look young for my age.  When I was about 27 a sales person knocked on the door and I answered and the guy said "is your mum or dad at home".... errr... this is my house...

I cant imagine how young I looked when I bought my first place when I was 21! 

My wife also had "the look" from a heating engineer, he said that the boiler needed work and she needed to ring the landlord to check what he wanted to do...

Secretly Saving

  • Bristles
  • ***
  • Posts: 401
Re: Do you ever get "The Look"?
« Reply #66 on: September 11, 2017, 03:21:06 AM »
Got the look when I went to HR to request that 100% of my paycheck be put into a retirement account.  I don't want any of it taxed nor to have any of it hit my checking account.  They think I'm crazy...

Herbert Derp

  • Bristles
  • ***
  • Posts: 326
  • Age: 27
  • Location: United States
Re: Do you ever get "The Look"?
« Reply #67 on: September 11, 2017, 04:42:51 AM »
I don't really get "the look" since everyone already assumes I'm rich because of my job. It's a blessing and a curse, I suppose. If I get caught doing "rich people stuff," it only seems to reinforce other people's preconceived notions about people in my line of work.

For example, take this other person's experience when buying a house:
That first bank also nearly interrogated to find out where the money from our downpayment came from. Savings wasn't an adequate answer. In their mind it was absolutely impossible for two mid-twenties kids who don't even look professional to be able to save one gross yearly income as a downpayment. Since my partner has wild hair and a beard I'm sure they thought it was crime related.

Back when I bought my condo, none of the realtors I worked with seemed to bat an eye despite me being in my early 20's and wanting to buy a condo with cash. Amusingly, my realtor ended up driving me around the city to see said condos because I didn't have a car. In fact, he was annoyingly eager to show me places that were as much as triple the price range that I was looking for. I had to keep reminding him that no, I was not interested in homes that expensive. He didn't even ask me for proof of assets until I made my first offer, and was fine with just a simple screenshot of my Vanguard account!

Before the closing, I rode my Razor scooter into the bank as a 23 year old guy wearing a T-shirt and jeans, with messy hair to boot. I sat down with a banker and asked for a cashier's check for a very precise number of approximately $150,000. She looked at me and was like, oh, you must be buying a house! And I'm like, yep. It was almost like she had to deal with people like me every day.

I'm pretty sure that my employment combined with the demographics of my city prevent me from getting the responses of others in this thread.

On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.
« Last Edit: September 11, 2017, 06:18:06 AM by Herbert Derp »

GuitarStv

  • Walrus Stache
  • *******
  • Posts: 9316
  • Age: 36
  • Location: Toronto, Ontario, Canada
Re: Do you ever get "The Look"?
« Reply #68 on: September 11, 2017, 07:20:19 AM »
I find it amazing that people my age still finance cars and other smallish purchases.

I had the money to outright buy our most recent car, but they offered me 0% financing for four years vs 500$ off the purchase price for paying in cash.  I financed because it would have been silly not to.  :P

slappy

  • Bristles
  • ***
  • Posts: 427
Re: Do you ever get "The Look"?
« Reply #69 on: September 11, 2017, 07:37:53 AM »
I find it amazing that people my age still finance cars and other smallish purchases.

I had the money to outright buy our most recent car, but they offered me 0% financing for four years vs 500$ off the purchase price for paying in cash.  I financed because it would have been silly not to.  :P

Walk me through the math on this one...I assume its because you could then invest that cash and make way more than $500 over the next x amount of years (loan term).

GuitarStv

  • Walrus Stache
  • *******
  • Posts: 9316
  • Age: 36
  • Location: Toronto, Ontario, Canada
Re: Do you ever get "The Look"?
« Reply #70 on: September 11, 2017, 08:01:25 AM »
I find it amazing that people my age still finance cars and other smallish purchases.

I had the money to outright buy our most recent car, but they offered me 0% financing for four years vs 500$ off the purchase price for paying in cash.  I financed because it would have been silly not to.  :P

Walk me through the math on this one...I assume its because you could then invest that cash and make way more than $500 over the next x amount of years (loan term).

12,000 up front gives you 500$ off

total cost of car - 11, 500$ . . . zero risk.

or


12,000 invested in a fixed interest GIC at 3% compounded annually gives you 1506.10$ of free money

total cost of car - 10493.89$ . . . zero risk.



Seems silly to take the 500$ when I can get 1500$ off instead.

Yes, you could also invest the money in the market . . . but since your withdrawal date is so soon it's possible that you'll have to pull the money out at a bad time.  You would probably be likely to make more money, but have to accept risk that you'll lose money by needing to withdraw at a bad time.)

dude

  • Handlebar Stache
  • *****
  • Posts: 1824
Re: Do you ever get "The Look"?
« Reply #71 on: September 11, 2017, 08:13:19 AM »
I get it occasionally when I tell people I'm 52. I like that "look" (I figure sooner or later Father Time will catch up to me and I won't get in anymore).

When they ask what my secret is I tell them without hesitation -- "no kids."  ;-)

PhilB

  • 5 O'Clock Shadow
  • *
  • Posts: 73
Re: Do you ever get "The Look"?
« Reply #72 on: September 11, 2017, 08:29:31 AM »

12,000 up front gives you 500$ off
total cost of car - 11, 500$ . . . zero risk.
or
12,000 invested in a fixed interest GIC at 3% compounded annually gives you 1506.10$ of free money
total cost of car - 10493.89$ . . . zero risk.
Seems silly to take the 500$ when I can get 1500$ off instead.
Two problems with that I'm afraid.  You have assumed that the amount invested is 12,000 when it would only be 11,500; and you have assumed that you don't pay any lease payments until the end of the 4 years.  If you model it with payments across the 4 years then you end up only $200 better off than taking the discount, not $1,000 better.  And that assumes that you can get a risk-free 3% return on all the money - I don't know what the US market is like, but in the UK you'd be getting much less than that on money that was being withdrawn in the first year or two.

Gondolin

  • Bristles
  • ***
  • Posts: 429
  • Location: Northern VA
Re: Do you ever get "The Look"?
« Reply #73 on: September 11, 2017, 08:56:00 AM »
Quote
Why does the painter care whether you own your home?

Because if you're a renter he can cut corners that he couldn't with the owner standing over his shoulder.
"There cannot be two skies"

Tetsuya Hondo

  • Pencil Stache
  • ****
  • Posts: 504
  • Location: 1960's Tokyo on the Bad Side of Town
Re: Do you ever get "The Look"?
« Reply #74 on: September 11, 2017, 09:11:12 AM »
I've always looked young for my age (or at least used to, not so sure nowadays) and usually wear shorts and a t-shirt since I work from home. Nearly every person that comes to do work on our house gives me a look when I answer the door. After realizing I am the owner they ask, usually with a still skeptical look on their face, "what is it you say you do for a living?" It also happens every time I get a shuttle ride from the car mechanic after dropping off a decade old car for repairs.

sherr

  • Bristles
  • ***
  • Posts: 330
  • Age: 32
  • Location: North Carolina
Re: Do you ever get "The Look"?
« Reply #75 on: September 11, 2017, 09:17:50 AM »

12,000 up front gives you 500$ off
total cost of car - 11, 500$ . . . zero risk.
or
12,000 invested in a fixed interest GIC at 3% compounded annually gives you 1506.10$ of free money
total cost of car - 10493.89$ . . . zero risk.
Seems silly to take the 500$ when I can get 1500$ off instead.
Two problems with that I'm afraid.  You have assumed that the amount invested is 12,000 when it would only be 11,500; and you have assumed that you don't pay any lease payments until the end of the 4 years.  If you model it with payments across the 4 years then you end up only $200 better off than taking the discount, not $1,000 better.

That's not quite right either. Either you assume $12,000 invested and then compare the interest with the $500 discount to see which is better (like GuitarStv did)(ignoring inflation), or you assume $11,500 invested and don't subtract anything from the interest. You can't both assume $11,500 invested and then subtract an additional $500 from the interest.

I agree 100% about the payments though, not all $12,000 is going to be "invested" the whole 4 years; you have to make those payments somehow and if it's not coming out of your investment account then it's coming out of money that you would have otherwise kept.

dogboyslim

  • Bristles
  • ***
  • Posts: 268
Re: Do you ever get "The Look"?
« Reply #76 on: September 11, 2017, 09:27:46 AM »
The look followed by accusations and finally anger.  The worst time was when my husband and I paid cash for our house.  The title company didn't believe us and proceeded to ask us who gave us the cash and said "normally people come in bragging and I find out that grandpa loaned them the money."    See, people our age just don't have that kind of cash and apparently making a cash transaction is bragging.  Well, it was a depressed housing market and we took advantage of a property that was days before foreclosure.  Our offer was accepted over several higher offers because there was no time to deal with financing from the other potential buyers.  The bank jumped on the cash offer.  We got a DEAL on that house so that man can think I'm a liar all he wants.   

It's not the title company's damned business where you got the money.   

A bank who is loaning you money?  Sure.

A title company?   Tell them to f* off and ask to speak to their manager.
If they are the owner and there's no time to do business elsewhere, write a complaint to the various regulatory and professional agencies.

If there is a loan for the money, the title company does need to know because they are guaranteeing that there are no liens nor would there be any liens on the property.  A loan for the purchase of the property may in fact create a lien, or at least the possibility for a lean.  This is why banks will often interrogate you about where the cash comes from, especially if it is deposited within the last 6 months or so.  There are nice ways to do this and rude ways to do it, but both these folks are just doing their due diligence as it relates to the product or service they are providing.

I get the look but in the other direction.  I'm a VP and I drive an 07 economy car.  Occasionally I'll take my staff out for lunch and any time I drive I get the eye rolls about my car.  I usually just talk about wanting to be sure I have enough to pay for my kids college and bring up the tuition to a local private school and then say "hopefully they'll get some scholarships!"  Otherwise, I'm fairly regularly given the eye-roll by those that know my title and then see my car.

Dabnasty

  • Bristles
  • ***
  • Posts: 291
  • Age: 28
  • Location: North Carolina
Re: Do you ever get "The Look"?
« Reply #77 on: September 11, 2017, 09:29:59 AM »

12,000 up front gives you 500$ off
total cost of car - 11, 500$ . . . zero risk.
or
12,000 invested in a fixed interest GIC at 3% compounded annually gives you 1506.10$ of free money
total cost of car - 10493.89$ . . . zero risk.
Seems silly to take the 500$ when I can get 1500$ off instead.
Two problems with that I'm afraid.  You have assumed that the amount invested is 12,000 when it would only be 11,500; and you have assumed that you don't pay any lease payments until the end of the 4 years.  If you model it with payments across the 4 years then you end up only $200 better off than taking the discount, not $1,000 better.

That's not quite right either. Either you assume $12,000 invested and then compare the interest with the $500 discount to see which is better (like GuitarStv did)(ignoring inflation), or you assume $11,500 invested and don't subtract anything from the interest. You can't both assume $11,500 invested and then subtract an additional $500 from the interest.

I agree 100% about the payments though, not all $12,000 is going to be "invested" the whole 4 years; you have to make those payments somehow and if it's not coming out of your investment account then it's coming out of money that you would have otherwise kept.
I come up with $792.58 if you invest at a guaranteed 3% compounding monthly vs. paying cash and investing $500 which would be $563.66 after 4 years at 3%. By accepting financing and investing you come out +$228.92.

Is there a good formula for this question in Excel?

SwordGuy

  • Magnum Stache
  • ******
  • Posts: 3358
  • Location: Fayetteville, NC
    • Flipping Fayetteville
Re: Do you ever get "The Look"?
« Reply #78 on: September 11, 2017, 09:43:17 AM »
Actually, it's making you around $763 because you have to spend $250 a month out of that $12,000 to pay off your loan.

So you're really only coming out about $263 ahead.   You can't collect interest on the money you withdraw to pay down the loan.


PhilB

  • 5 O'Clock Shadow
  • *
  • Posts: 73
Re: Do you ever get "The Look"?
« Reply #79 on: September 11, 2017, 09:49:50 AM »

12,000 up front gives you 500$ off
total cost of car - 11, 500$ . . . zero risk.
or
12,000 invested in a fixed interest GIC at 3% compounded annually gives you 1506.10$ of free money
total cost of car - 10493.89$ . . . zero risk.
Seems silly to take the 500$ when I can get 1500$ off instead.
Two problems with that I'm afraid.  You have assumed that the amount invested is 12,000 when it would only be 11,500; and you have assumed that you don't pay any lease payments until the end of the 4 years.  If you model it with payments across the 4 years then you end up only $200 better off than taking the discount, not $1,000 better.

That's not quite right either. Either you assume $12,000 invested and then compare the interest with the $500 discount to see which is better (like GuitarStv did)(ignoring inflation), or you assume $11,500 invested and don't subtract anything from the interest. You can't both assume $11,500 invested and then subtract an additional $500 from the interest.

I agree 100% about the payments though, not all $12,000 is going to be "invested" the whole 4 years; you have to make those payments somehow and if it's not coming out of your investment account then it's coming out of money that you would have otherwise kept.
I come up with $792.58 if you invest at a guaranteed 3% compounding monthly vs. paying cash and investing $500 which would be $563.66 after 4 years at 3%. By accepting financing and investing you come out +$228.92.

Is there a good formula for this question in Excel?
Okay, if you want a more exact answer, I've worked it out assuming interest is paid monthly.  0.24663% per month compound is the same as 3% pa compound.  If you look at actual cashflows, then at the start of the 4 year period OP either hands over $11,500 as a full payment, or hands over $250 as the first monthly lease payment.  The difference in cashflow is $11,250 so that's how much they get to put in the bank.  At the end of the first month that has earned $27.75 in interest, but now they make a $250 repayment so they have $11,027.75 left.  Next month they earn $27.20 and pay off $250 and so on.  At the end of the 4 years the car is paid off and they have a profit of $188.99 left sitting in the account - assuming they have found a saving account that pays 3% pa and lets you make 12 penalty-free withdrawals a year.

slappy

  • Bristles
  • ***
  • Posts: 427
Re: Do you ever get "The Look"?
« Reply #80 on: September 11, 2017, 09:57:11 AM »
Interesting break down on the car loan question. Thank you everyone! I guess I was thinking that the money would be invested for the long term and therefore didn't take into account the short term period.

ketchup

  • Magnum Stache
  • ******
  • Posts: 2783
  • Age: 26
Re: Do you ever get "The Look"?
« Reply #81 on: September 11, 2017, 09:59:24 AM »
I withdrew cash for a down payment (didn't get a cashier's check because I was stupid then) when I was 20, and as the (young but slightly older than me at the time) teller was getting the cash together we were chit chatting and his head about exploded when I said it was for a house.

Coworker was marveling at my buying a house at 24, and then gave me a "look" and got really quiet when I said it was house #2, and I had just paid off #1 and was keeping it as a rental.

Goldielocks

  • Magnum Stache
  • ******
  • Posts: 4787
  • Location: BC
Re: Do you ever get "The Look"?
« Reply #82 on: September 11, 2017, 10:08:32 AM »

12,000 up front gives you 500$ off
total cost of car - 11, 500$ . . . zero risk.
or
12,000 invested in a fixed interest GIC at 3% compounded annually gives you 1506.10$ of free money
total cost of car - 10493.89$ . . . zero risk.
Seems silly to take the 500$ when I can get 1500$ off instead.
Two problems with that I'm afraid.  You have assumed that the amount invested is 12,000 when it would only be 11,500; and you have assumed that you don't pay any lease payments until the end of the 4 years.  If you model it with payments across the 4 years then you end up only $200 better off than taking the discount, not $1,000 better.

That's not quite right either. Either you assume $12,000 invested and then compare the interest with the $500 discount to see which is better (like GuitarStv did)(ignoring inflation), or you assume $11,500 invested and don't subtract anything from the interest. You can't both assume $11,500 invested and then subtract an additional $500 from the interest.

I agree 100% about the payments though, not all $12,000 is going to be "invested" the whole 4 years; you have to make those payments somehow and if it's not coming out of your investment account then it's coming out of money that you would have otherwise kept.
I come up with $792.58 if you invest at a guaranteed 3% compounding monthly vs. paying cash and investing $500 which would be $563.66 after 4 years at 3%. By accepting financing and investing you come out +$228.92.

Is there a good formula for this question in Excel?


=fv(0.03/12,4*12,-250,12000,0)
=fv(interest, number of payments, amount of payment, initial investment, end/beg)
= $795.13

By including the -250 per month that is withdrawn monthly from the 12,000 invested, we can see that the OP is up $795 after 4 years, and a paid off loan at zero percent.

The $500 cash rebate grows a bit over 4 years.
=FV(0.03/12,4*12,0,500)
=$564

Net difference: $231.47 in OP's favor.   

This difference grows to $502 if a 4% interest rate is used instead of 3%...   The different numbers others are getting are for different scenarios, such as not paying back $12,000 until the end of 4 years as a lump sum, interest rates, allowing for inflation to erode your net benefit, etc.   It all depends on the actual situation and source of the funds... maybe the $250 will come from future income, not pulled from the invested loan money?  If so, I would not use 4% to discount the 250, but the actual rate of inflation, etc.

PhilB

  • 5 O'Clock Shadow
  • *
  • Posts: 73
Re: Do you ever get "The Look"?
« Reply #83 on: September 11, 2017, 10:26:48 AM »
=fv(0.03/12,4*12,-250,12000,0)
=fv(interest, number of payments, amount of payment, initial investment, end/beg)
= $795.13

By including the -250 per month that is withdrawn monthly from the 12,000 invested, we can see that the OP is up $795 after 4 years, and a paid off loan at zero percent.

The $500 cash rebate grows a bit over 4 years.
=FV(0.03/12,4*12,0,500)
=$564

Net difference: $231.47 in OP's favor.   

This is getting fun!  That difference drops to $220.83 if you don't just divide 3% by 12, but use the more accurate method of finding the monthly rate that compounds to 3%.  The remaining $31 of difference to my number is all down to whether the first lease payment is made at the end of the month as in the formula above, or at the start of the month as I assumed (change the 0 at the end of the formula to a 1 to get this basis).  As I have never financed anything in my life, (other than a mortgage on a house) I have no idea at all whether lease payments are usually made in advance or arrears.  Can anyone enlighten me?

bender

  • Pencil Stache
  • ****
  • Posts: 899
Re: Do you ever get "The Look"?
« Reply #84 on: September 11, 2017, 10:42:28 AM »
Also note that investment earnings are taxable, where upfront savings from the price reduction are taken at face value.

Goldielocks

  • Magnum Stache
  • ******
  • Posts: 4787
  • Location: BC
Re: Do you ever get "The Look"?
« Reply #85 on: September 11, 2017, 10:48:49 AM »
Also note that investment earnings are taxable, where upfront savings from the price reduction are taken at face value.
Great point!

Cadman

  • Stubble
  • **
  • Posts: 196
  • Location: Midwest
Re: Do you ever get "The Look"?
« Reply #86 on: September 11, 2017, 11:49:36 AM »
If you think buying a house in your 20's gets you the look, imagine building your own house. As we did our own work constructing it, I'd shop around for the best deal on materials, visit with businesses that dealt in glass cutting, garage doors, cement work, etc. and it wasn't so much 'the look' but the fine line between belief and disbelief I'd get. I still have the contact info for 'the believers' a decade later, and they're my go-to guys when I need steel or glass for a smaller project. The other guys just pissed me off..."alright, we'll be in touch with a quote". You can guess how that panned out.

I had A/C installed for the first time last month, and being in my mid-30's and having a rather unique property, I still got the "what do you do for a living?" question once the estimator pulled up, looked around, looked at me, then looked around again.

Dabnasty

  • Bristles
  • ***
  • Posts: 291
  • Age: 28
  • Location: North Carolina
Re: Do you ever get "The Look"?
« Reply #87 on: September 11, 2017, 12:04:41 PM »
I had the money to outright buy our most recent car, but they offered me 0% financing for four years vs 500$ off the purchase price for paying in cash.  I financed because it would have been silly not to.  :P
Also note that investment earnings are taxable, where upfront savings from the price reduction are taken at face value.
Great point!
So what kind of tax did you pay on your investment earnings over those 4 years?

GuitarStv didn't know what he was getting into with that post, but that's what happens when you talk to nerds

dycker1978

  • Pencil Stache
  • ****
  • Posts: 718
  • Age: 39
  • Location: Regina, Saskatchewan, Canada
Re: Do you ever get "The Look"?
« Reply #88 on: September 11, 2017, 12:17:17 PM »
I don't really get "the look" since everyone already assumes I'm rich because of my job. It's a blessing and a curse, I suppose. If I get caught doing "rich people stuff," it only seems to reinforce other people's preconceived notions about people in my line of work.

For example, take this other person's experience when buying a house:
That first bank also nearly interrogated to find out where the money from our downpayment came from. Savings wasn't an adequate answer. In their mind it was absolutely impossible for two mid-twenties kids who don't even look professional to be able to save one gross yearly income as a downpayment. Since my partner has wild hair and a beard I'm sure they thought it was crime related.

Back when I bought my condo, none of the realtors I worked with seemed to bat an eye despite me being in my early 20's and wanting to buy a condo with cash. Amusingly, my realtor ended up driving me around the city to see said condos because I didn't have a car. In fact, he was annoyingly eager to show me places that were as much as triple the price range that I was looking for. I had to keep reminding him that no, I was not interested in homes that expensive. He didn't even ask me for proof of assets until I made my first offer, and was fine with just a simple screenshot of my Vanguard account!

Before the closing, I rode my Razor scooter into the bank as a 23 year old guy wearing a T-shirt and jeans, with messy hair to boot. I sat down with a banker and asked for a cashier's check for a very precise number of approximately $150,000. She looked at me and was like, oh, you must be buying a house! And I'm like, yep. It was almost like she had to deal with people like me every day.

I'm pretty sure that my employment combined with the demographics of my city prevent me from getting the responses of others in this thread.

On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.

What a jerk move to save a couple of bucks.  This person is homeless? and you are taking what could amount to her meal for a few days, when you are worth 6 figures and make that a year.  Wow, some people.

solon

  • Handlebar Stache
  • *****
  • Posts: 1093
  • Age: 1817
  • Location: CO
Re: Do you ever get "The Look"?
« Reply #89 on: September 11, 2017, 12:20:29 PM »
I don't really get "the look" since everyone already assumes I'm rich because of my job. It's a blessing and a curse, I suppose. If I get caught doing "rich people stuff," it only seems to reinforce other people's preconceived notions about people in my line of work.

For example, take this other person's experience when buying a house:
That first bank also nearly interrogated to find out where the money from our downpayment came from. Savings wasn't an adequate answer. In their mind it was absolutely impossible for two mid-twenties kids who don't even look professional to be able to save one gross yearly income as a downpayment. Since my partner has wild hair and a beard I'm sure they thought it was crime related.

Back when I bought my condo, none of the realtors I worked with seemed to bat an eye despite me being in my early 20's and wanting to buy a condo with cash. Amusingly, my realtor ended up driving me around the city to see said condos because I didn't have a car. In fact, he was annoyingly eager to show me places that were as much as triple the price range that I was looking for. I had to keep reminding him that no, I was not interested in homes that expensive. He didn't even ask me for proof of assets until I made my first offer, and was fine with just a simple screenshot of my Vanguard account!

Before the closing, I rode my Razor scooter into the bank as a 23 year old guy wearing a T-shirt and jeans, with messy hair to boot. I sat down with a banker and asked for a cashier's check for a very precise number of approximately $150,000. She looked at me and was like, oh, you must be buying a house! And I'm like, yep. It was almost like she had to deal with people like me every day.

I'm pretty sure that my employment combined with the demographics of my city prevent me from getting the responses of others in this thread.

On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.

What a jerk move to save a couple of bucks.  This person is homeless? and you are taking what could amount to her meal for a few days, when you are worth 6 figures and make that a year.  Wow, some people.

When someone offers you a gift, you graciously accept. It would be a jerk move to refuse.

slappy

  • Bristles
  • ***
  • Posts: 427
Re: Do you ever get "The Look"?
« Reply #90 on: September 11, 2017, 12:22:18 PM »
I don't really get "the look" since everyone already assumes I'm rich because of my job. It's a blessing and a curse, I suppose. If I get caught doing "rich people stuff," it only seems to reinforce other people's preconceived notions about people in my line of work.

For example, take this other person's experience when buying a house:
That first bank also nearly interrogated to find out where the money from our downpayment came from. Savings wasn't an adequate answer. In their mind it was absolutely impossible for two mid-twenties kids who don't even look professional to be able to save one gross yearly income as a downpayment. Since my partner has wild hair and a beard I'm sure they thought it was crime related.

Back when I bought my condo, none of the realtors I worked with seemed to bat an eye despite me being in my early 20's and wanting to buy a condo with cash. Amusingly, my realtor ended up driving me around the city to see said condos because I didn't have a car. In fact, he was annoyingly eager to show me places that were as much as triple the price range that I was looking for. I had to keep reminding him that no, I was not interested in homes that expensive. He didn't even ask me for proof of assets until I made my first offer, and was fine with just a simple screenshot of my Vanguard account!

Before the closing, I rode my Razor scooter into the bank as a 23 year old guy wearing a T-shirt and jeans, with messy hair to boot. I sat down with a banker and asked for a cashier's check for a very precise number of approximately $150,000. She looked at me and was like, oh, you must be buying a house! And I'm like, yep. It was almost like she had to deal with people like me every day.

I'm pretty sure that my employment combined with the demographics of my city prevent me from getting the responses of others in this thread.

On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.

What a jerk move to save a couple of bucks.  This person is homeless? and you are taking what could amount to her meal for a few days, when you are worth 6 figures and make that a year.  Wow, some people.

No, I read it as the person who was offering the meal was offering it to a mustachian who she incorrectly assumed was homeless.

SecretSquirrel

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Do you ever get "The Look"?
« Reply #91 on: September 11, 2017, 12:28:52 PM »
I think the power of compound interest is unknown to most folks. A friend is going to be starting a job soon with a 401k. I was trying to educate her a little on the benefits of investing a lot, and early, and how compound interest can really add up over time. I asked her how much she thought she'd have if she invested even 10% of her salary every year for several decades. She guessed around $50K. When I told her, conservatively, it would be over a million, her reaction was "...What!?". So I guess I got "the look" but from an educational standpoint.

dycker1978

  • Pencil Stache
  • ****
  • Posts: 718
  • Age: 39
  • Location: Regina, Saskatchewan, Canada
Re: Do you ever get "The Look"?
« Reply #92 on: September 11, 2017, 12:39:21 PM »
I don't really get "the look" since everyone already assumes I'm rich because of my job. It's a blessing and a curse, I suppose. If I get caught doing "rich people stuff," it only seems to reinforce other people's preconceived notions about people in my line of work.

For example, take this other person's experience when buying a house:
That first bank also nearly interrogated to find out where the money from our downpayment came from. Savings wasn't an adequate answer. In their mind it was absolutely impossible for two mid-twenties kids who don't even look professional to be able to save one gross yearly income as a downpayment. Since my partner has wild hair and a beard I'm sure they thought it was crime related.

Back when I bought my condo, none of the realtors I worked with seemed to bat an eye despite me being in my early 20's and wanting to buy a condo with cash. Amusingly, my realtor ended up driving me around the city to see said condos because I didn't have a car. In fact, he was annoyingly eager to show me places that were as much as triple the price range that I was looking for. I had to keep reminding him that no, I was not interested in homes that expensive. He didn't even ask me for proof of assets until I made my first offer, and was fine with just a simple screenshot of my Vanguard account!

Before the closing, I rode my Razor scooter into the bank as a 23 year old guy wearing a T-shirt and jeans, with messy hair to boot. I sat down with a banker and asked for a cashier's check for a very precise number of approximately $150,000. She looked at me and was like, oh, you must be buying a house! And I'm like, yep. It was almost like she had to deal with people like me every day.

I'm pretty sure that my employment combined with the demographics of my city prevent me from getting the responses of others in this thread.

On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.

What a jerk move to save a couple of bucks.  This person is homeless? and you are taking what could amount to her meal for a few days, when you are worth 6 figures and make that a year.  Wow, some people.

No, I read it as the person who was offering the meal was offering it to a mustachian who she incorrectly assumed was homeless.

That I agree with, but it says they were taking handouts from a homeless woman.  If that is the case it is a horrible thing to do in my opinion.  The poster should be giving to homeless, if anything, not taking from them

Dabnasty

  • Bristles
  • ***
  • Posts: 291
  • Age: 28
  • Location: North Carolina
Re: Do you ever get "The Look"?
« Reply #93 on: September 11, 2017, 12:52:22 PM »
On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.
What a jerk move to save a couple of bucks.  This person is homeless? and you are taking what could amount to her meal for a few days, when you are worth 6 figures and make that a year.  Wow, some people.
Lol, ya. I feel like I would have taken the burger too but I also would have given her all the cash in my wallet before we parted ways. Giving when you don't have enough for yourself is real generosity.

slappy

  • Bristles
  • ***
  • Posts: 427
Re: Do you ever get "The Look"?
« Reply #94 on: September 11, 2017, 12:55:34 PM »
I don't really get "the look" since everyone already assumes I'm rich because of my job. It's a blessing and a curse, I suppose. If I get caught doing "rich people stuff," it only seems to reinforce other people's preconceived notions about people in my line of work.

For example, take this other person's experience when buying a house:
That first bank also nearly interrogated to find out where the money from our downpayment came from. Savings wasn't an adequate answer. In their mind it was absolutely impossible for two mid-twenties kids who don't even look professional to be able to save one gross yearly income as a downpayment. Since my partner has wild hair and a beard I'm sure they thought it was crime related.

Back when I bought my condo, none of the realtors I worked with seemed to bat an eye despite me being in my early 20's and wanting to buy a condo with cash. Amusingly, my realtor ended up driving me around the city to see said condos because I didn't have a car. In fact, he was annoyingly eager to show me places that were as much as triple the price range that I was looking for. I had to keep reminding him that no, I was not interested in homes that expensive. He didn't even ask me for proof of assets until I made my first offer, and was fine with just a simple screenshot of my Vanguard account!

Before the closing, I rode my Razor scooter into the bank as a 23 year old guy wearing a T-shirt and jeans, with messy hair to boot. I sat down with a banker and asked for a cashier's check for a very precise number of approximately $150,000. She looked at me and was like, oh, you must be buying a house! And I'm like, yep. It was almost like she had to deal with people like me every day.

I'm pretty sure that my employment combined with the demographics of my city prevent me from getting the responses of others in this thread.

On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.

What a jerk move to save a couple of bucks.  This person is homeless? and you are taking what could amount to her meal for a few days, when you are worth 6 figures and make that a year.  Wow, some people.

No, I read it as the person who was offering the meal was offering it to a mustachian who she incorrectly assumed was homeless.

That I agree with, but it says they were taking handouts from a homeless woman.  If that is the case it is a horrible thing to do in my opinion.  The poster should be giving to homeless, if anything, not taking from them

Oh yeah, looks like I read it wrong. :(

slappy

  • Bristles
  • ***
  • Posts: 427
Re: Do you ever get "The Look"?
« Reply #95 on: September 11, 2017, 12:59:34 PM »
I think the power of compound interest is unknown to most folks. A friend is going to be starting a job soon with a 401k. I was trying to educate her a little on the benefits of investing a lot, and early, and how compound interest can really add up over time. I asked her how much she thought she'd have if she invested even 10% of her salary every year for several decades. She guessed around $50K. When I told her, conservatively, it would be over a million, her reaction was "...What!?". So I guess I got "the look" but from an educational standpoint.

I convinced a young co worker to contribute up to the match in her 401k. She was part time, 22 years old. Living with her parents and spoiled. I told her don't worry it will only be $25 a week. Well we got paid and she flipped out because it was $50 (we got paid biweekly) and she couldn't afford that. I asked her what exactly she couldn't afford, since she lived at home and had no bills. She said she had credit card bills and started naming off various mall clothing stores.

This same girl made a comment about a customer who had $60k in her bank account. She said "if I had $60k, I wouldn't be driving a car like that. I'd be driving a much nicer car." I said the reason she has $60k is because she drives a "car like that".

dycker1978

  • Pencil Stache
  • ****
  • Posts: 718
  • Age: 39
  • Location: Regina, Saskatchewan, Canada
Re: Do you ever get "The Look"?
« Reply #96 on: September 11, 2017, 01:00:29 PM »
On the other hand, I've had some amusing encounters over the years where people assumed strange things about me--especially when I'm out of town. Once, I was riding a Greyhound bus and one of the passengers must have assumed I was homeless or something because she invited me to come with her to a homeless shelter. She also shared some hamburgers she had purchased from the McDonald's dollar menu. I'm thinking to myself that here I am, worth hundreds of thousands of dollars, making six figures, and taking handouts from a homeless women on a Greyhound bus because she pities me. Needless to say, I did not correct her assumptions.
What a jerk move to save a couple of bucks.  This person is homeless? and you are taking what could amount to her meal for a few days, when you are worth 6 figures and make that a year.  Wow, some people.
Lol, ya. I feel like I would have taken the burger too but I also would have given her all the cash in my wallet before we parted ways. Giving when you don't have enough for yourself is real generosity.

+1

BlueHouse

  • Magnum Stache
  • ******
  • Posts: 2571
  • Location: WDC
Re: Do you ever get "The Look"?
« Reply #97 on: September 11, 2017, 01:12:53 PM »
Ah yes, "The Look".  When I was buying my house, the window treatment guy who was selling to all the new homeowners asked me straight out how I was doing so well for myself that I could afford a house like this on my own.  I immediately assumed that he wanted to know whether I was divorced or widowed because how on earth could a woman afford a house like this by herself.  (Later I was told I read too much into it, but I still think he never would have wondered with a man).  Besides, it's not like I bought the whole house...I had and still have a substantial mortgage.  All I did was get myself into a buttload of debt!

They mostly just assume I'm being kept by my husband, though, which is all the more annoying because it's actually the other way around.

This happens all the time with my sister.  She's very successful and whenever people get a small glimpse into her life, it's always "what does her husband do"?  It makes me furious!
Sometimes nothing can be a real cool hand

GuitarStv

  • Walrus Stache
  • *******
  • Posts: 9316
  • Age: 36
  • Location: Toronto, Ontario, Canada
Re: Do you ever get "The Look"?
« Reply #98 on: September 11, 2017, 01:17:24 PM »
I had the money to outright buy our most recent car, but they offered me 0% financing for four years vs 500$ off the purchase price for paying in cash.  I financed because it would have been silly not to.  :P
Also note that investment earnings are taxable, where upfront savings from the price reduction are taken at face value.
Great point!
So what kind of tax did you pay on your investment earnings over those 4 years?

GuitarStv didn't know what he was getting into with that post, but that's what happens when you talk to nerds

The math that I posted is pretty much what I did in my head while the guy was talking to me.  I totally somehow blanked on the fact that we do pay monthly fees (I handle the investments and my wife tends to handle the bills) and purchased a four year GIC at a little over 3% at the same time that we got the car . . . so in retrospect . . . whoopsies.  :P

We're taxed based upon graduated brackets based upon net income - RRSP contributions and I'd have to sit down with our previous year's returns to get you an exact value.  I'd guess somewhere around 20% off the top of my head.

Marley09

  • 5 O'Clock Shadow
  • *
  • Posts: 15
Re: Do you ever get "The Look"?
« Reply #99 on: September 11, 2017, 01:19:27 PM »
Got the look when I went to HR to request that 100% of my paycheck be put into a retirement account.  I don't want any of it taxed nor to have any of it hit my checking account.  They think I'm crazy...

Can you walk me through this one?  How can 100% of your paycheck not be taxed?

-Marley