Thinking about cashing in my IRA to buy a '67.

[Roger A.]

Re: Thinking about cashing in my IRA to buy a '67.

Yep, going to do it. Waited to long to get the 67, but another will show up. The Driveline will help out there. The wife is OK with it too. Step one sell the Harley, garage is to small for more than one toy. I've got it listed on Craigs list now. HERE WE GO!!!!!

[Mark J.]

Re: Thinking about cashing in my IRA to buy a '67.

An older man in his 60's walked up to get a cart. He had a pronounced limp and appeared to slightly drag one leg. After he got a cart he looked perfectly normal, except now I could clearly see that part of his face was paralyzed. SNAP, like a thin glass rod, something in my mind went snap. That could be me tomorrow.

LOL! I did not see that coming. I thought you were going to say you suddenly realized the dangers of riding a motorcycle and swore it off forever. That's what happened to me at age 26. I put a deposit down on a Kawasaki 750 and never went back to pick it up.

[Martin T.]

Re: Thinking about cashing in my IRA to buy a '67.

Yep, going to do it. Waited to long to get the 67, but another will show up. The Driveline will help out there. The wife is OK with it too. Step one sell the Harley, garage is to small for more than one toy. I've got it listed on Craigs list now. HERE WE GO!!!!!

Roger, Just try to stay somewhat rational. The money you spend on a toy should be proportionate to money you know you can live without. DO NOT SPEND YOUR PRINCIPAL!!!!! To try to re-earn that money in an economy that is very very uncertain is not a rational move. Realize these cars are (as you put it) toys and not investments. They are not dependable transportation nor all that comfortable.

[Bryan M.]

Re: Thinking about cashing in my IRA to buy a '67.

Yep, going to do it. Waited to long to get the 67, but another will show up. The Driveline will help out there. The wife is OK with it too. Step one sell the Harley, garage is to small for more than one toy. I've got it listed on Craigs list now. HERE WE GO!!!!!

A nice driver that you can enjoy and it will not break the bank. I believe you can drive, enjoy and still be able to get most, if not all, of your money back on this type of car when you decide to sell.

[Roger A.]

Re: Thinking about cashing in my IRA to buy a '67.

A nice driver that you can enjoy and it will not break the bank. I believe you can drive, enjoy and still be able to get most, if not all, of your money back on this type of car when you decide to sell.

Just what I'm looking for, a driver. Mid year convertible with a hard top. I bought my first Corvette in 1977, joined NCRS in 1982, and have had a dozen or more over the years. Some were show, a 1969 that went Bloomington Gold in 1985, one was brought home on a trailer and boxes, a 1957 that I sold the same way. Enjoyed all of them, and never lost any money on any of them. The last one, a 1966 coupe my wife now wears on the third finger of her left hand, and that's what she tells people it used to be! Thanks for all the good advice from everyone. I'll post pictures when I fill the empty space in the garage.

[Donald O.]

Re: Thinking about cashing in my IRA to buy a '67.

Roger,
For what its worth, I have been calling my 67 part of my IRAs, only instead of just looking at an asset balance sheet, I get to play with it.
I paid $7500 for it in 1985, I sorta think its worth more than that.

And for the erudite bean counters, I don't give a rat's potato chip if it kept pace, exceeded or fell below the inflation or DJIA return avgs.

Don

[Ridge K.]

Re: Thinking about cashing in my IRA to buy a '67.

Roger,
For what its worth, I have been calling my 67 part of my IRAs, only instead of just looking at an asset balance sheet, I get to play with it.
I paid $7500 for it in 1985, I sorta think its worth more than that.

And for the erudite bean counters, I don't give a rat's potato chip if it kept pace, exceeded or fell below the inflation or DJIA return avgs.

Don

Good point, Don.
I must admit I've read good points on both sides of the issue.

One thing I must admit, I've seen some good conservative financial advice here, but no mention fo how inflation rots at your pricipal, while sitting on those funds.
The inflation rate in the United States was 2.10 percent in February of 2010

Some experts are predicting astronomical inflation if America keeps printing money to pay for expanding social programs.
That $200K big block C2, may just become a seven figure big block by 2012 or so...

[Martin T.]

Re: Thinking about cashing in my IRA to buy a '67.

Good point, Don.
I must admit I've read good points on both sides of the issue.

One thing I must admit, I've seen some good conservative financial advice here, but no mention fo how inflation rots at your pricipal, while sitting on those funds.
The inflation rate in the United States was 2.10 percent in February of 2010

Some experts are predicting astronomical inflation if America keeps printing money to pay for expanding social programs.
That $200K big block C2, may just become a seven figure big block by 2012 or so...

Regarding the 67 bought in 85: You're right it's worth more but you have kept its real value as a toy in perspective.

Regarding inflation driving your 200k Vett up in price to seven figures: What happens in an economy saturated with money of little value is the things that are needed (i.e. housing, food, clothing, etc but not Corvettes) will rise in price because they may be import dependent. Look at Argentina from 1909 to current status. We may find ourselves in that situation if Congress and the Pres keep enacting socialistic policies and don't try to incentavize industry here (in the USA not more outsourcing).
That Vett that was worth 200k two years ago is probably worth around 125 to 150 today and could fall proportionately to the rate of declining US Dollar value.

[Ridge K.]

Re: Thinking about cashing in my IRA to buy a '67.

Regarding the 67 bought in 85: You're right it's worth more but you have kept its real value as a toy in perspective.

Regarding inflation driving your 200k Vett up in price to seven figures: What happens in an economy saturated with money of little value is the things that are needed (i.e. housing, food, clothing, etc but not Corvettes) will rise in price because they may be import dependent. Look at Argentina from 1909 to current status. We may find ourselves in that situation if Congress and the Pres keep enacting socialistic policies and don't try to incentavize industry here (in the USA not more outsourcing).
That Vett that was worth 200k two years ago is probably worth around 125 to 150 today and could fall proportionately to the rate of declining US Dollar value.

Excellent point, Martin,
You and I are roughly the same age, so you've had roughly the same life experiences as I have had. I turn 56 in a few weeks.
I owned a business thru the four years of the President Jimmy Carter administration, and lived thru that inflationary period.

You are correct that primarily life's necessaties skyrocketed thru the roof, brutalizing the middle class, ...in those dark days.
Now, back to Corvettes!

Ridge

[Martin T.]

Re: Thinking about cashing in my IRA to buy a '67.

Excellent point, Martin,
You and I are roughly the same age, so you've had roughly the same life experiences as I have had. I turn 56 in a few weeks.
I owned a business thru the four years of the President Jimmy Carter administration, and lived thru that inflationary period.

You are correct that primarily life's necessaties skyrocketed thru the roof, brutalizing the middle class, ...in those dark days.
Now, back to Corvettes!

Ridge

Ridge, My comments were about the Corvette. In the Carter years there was an effort to cut M-1 and M-2. There was too much money in circulation and Volker made the move to tighten the money supply to slow inflation. What happened was businesses were having to pay high rates of interest due to declining amounts of capital in circulation, the government found itself short of cash (but realized it couldn't just print more money unlike Obama) and had to borrow from the private sector, and individuals wanting to borrow were having to compete with business and government (hence 15-21% interest rates). Business was encouraged to grow and that finally pulled us out of the recession.
Now we are being faced with complete socialization and lack of incentive for expanding private enterprise (kind of like Russia in the 60's).
What effect will this have on Corvette values? A Corvette is a non-essential. Therefore, the value, in a deflationary economy. will go down as the price of essentials rises.
So, the question was: Should a person cash in their IRA to buy a Vett? No, is my answer and the above is why.
Are they cool cars? Yes but don't buy something that's going to put you upside down financially. Will the value of a Corvette increase again at some point? Yes, if we can get this idea of socializing everything behind us and allow rational (meaning no more golden parachutes, government bailouts, fair return to investors, and no more overpaid execs.) capitalism to grow again. If you're looking ahead 2-5 years there will be little upward movement in my opinion. If you are thinking 10-15 years then you may be fine. Buffet and his partner Charlie are much smarter than anyone I know of and they are saying it may be a generation before Obama's mess is straightened out. BTW, I am not a Republican. I am a life long Democrat.

[Kenneth H.]

Re: Thinking about cashing in my IRA to buy a '67.

No risk involved in my situation. We have other income that will take care of the payments if anything happens.

[Paul J.]

Re: Thinking about cashing in my IRA to buy a '67.

LOL! I did not see that coming. I thought you were going to say you suddenly realized the dangers of riding a motorcycle and swore it off forever. That's what happened to me at age 26. I put a deposit down on a Kawasaki 750 and never went back to pick it up.

No problem. As long as you've got no regrets.

As for me, I'm only going to live once. I still ride...every day.

[Paul L.]

Re: Thinking about cashing in my IRA to buy a '67.

One major health problem? Do you have insurance? Heart problems could wipe you out.

[Ronald L.]

Re: Thinking about cashing in my IRA to buy a '67.

His health just got better getting the OK to get the car. Once he gets one, it will take 10 years off his biological age.

[Roger A.]

Re: Thinking about cashing in my IRA to buy a '67.

One more update. Harley sold today! Be picked up by the happy new owner Friday. I can see a Corvette in my future!!