Updated June 3, 2021
My oldest dream
From an early age I was interested in exotic sports cars (super-cars). Those of Ferrari, those of Lamborghini, those of Aston Martin, so to speak.
I don’t know where the interest came from, but it was probably from the movies. James Bond, anyone? It’s not really a handy car for a spy, but it’s certainly more exciting than driving a Honda Civic while fighting the bad guys.
And what guy of my generation didn’t have the Lamborghini Countach poster on the wall?
Then there was Top Gear which aired for two decades (now The Grand Tour) and when I was twenty I lived in a splendid city where there was a lot of money sliding during the property bubble and I saw lots of super cars. circulating everywhere.
When I pulled one behind at the traffic light, I would wonder what that person’s life was like. Everything must be perfect and his life was amazing, right? It had to be.
Exotic cars inspired dreams.
In a way, the exotic car was one of the carrots and was part of my motivation to succeed. It’s a symbol of success and of having “achieved” it in life, and I wanted it.
I know a lot of people just see cars as cars, probably the way I see handbags as handbags, but only those who want to can understand that.
In particular, you see Aston Martin in the same way that people see art. Beauty.
During my travels, even I photograph super cars in the same way that people can photograph art in a museum:
I’m not really a “thing” person
Almost this type of car is almost the only “thing” I wanted, maybe because it looks like it’s unattainable and glamorous.
I buy things for utility and hang on to them for as long as they last. I still have gym t-shirts from 15 years ago and the computer I am writing this article on is 9 years old, has a broken stand and a blown speaker. The work is done.
I’ve never paid for a smartphone, never had a data plan, and I wasn’t even thrilled when my brother offered me my first smartphone as a delivery in 2012 or so. It wasn’t about the money, it just didn’t make sense. Viouslybviamente, modern life today revolves around the smartphone, so I think it would be hard to give it up now, but I’m not excited about many things.
Before the pandemic, my biggest expense in taxation was travel. I have always valued the experience of international travel, cuisine and people, and since 2012 I have been to 41 countries. But since I haven’t been out of the country in over a year, I have more money than usual accumulating itching for an outing to enjoy.
Having been hosted in my home for over a year, with Zoom meetings, most of my human interaction, I have found that having an exotic car is a surprisingly social activity with car clubs, enthusiastic companions and random strangers chatting to you. almost every time you don’t move.
I have always been a saver
Feeling comfortable with the idea of spending so much on a car was not easy for me as I have always been a saver. In fact, there were times when he was convinced that he would never shoot the shot because the amount of money would be too much to spend and the idea of losing the income from the investment and exchanging it for amortization would not be worth it.
The thing is, during the ten years after I finished college, I lived exceptionally well below my means and saved and invested enough to become a self-made millionaire a couple of years ago. I lived in a 320 square foot apartment for several years and my first apartment purchase was a 400 square foot studio, which was about thirty years old. I’ve updated since then, but before I did, I had never bought a TV, a cable, hung anything on my walls, and basically lived a pretty spartan life.
All my life I have spent $ 30,000 buying 3 different cars since I turned 16 years old. This price seems to be the typical fare of current new cars.
Retiring early is a long-term goal
I also want to retire early. Without a doubt, spending so much on a car is a step in the opposite direction, I understand. In fact, it is complete sacrilege in the world of personal finance bloggers. Hell, you’re not even supposed to buy milk.
Live one dream at a time and enjoy.
While discussing the dilemma of retiring early and enjoying life today, this was the advice of a fellow traveler and car enthusiast I met on my last trip and kept in touch. It’s a good philosophy.
I will not reach my retirement goal for 5-10 more years. Of course, I will lose a piece of change when you go to sell the car in a few years, but when you meet the rule of not spending more than 10-15% of your wealth on any luxury purchase, then the amount lost does not it will materially change the chronology. However, it adds a lot of enjoyment during this chronology. My brother, also a car enthusiast, uses the qualifier “Smiles per mile.”
Should early retirement mean retiring at age 35 to FIRE land?
The sooner you retire, the greater the asset you need to dodge rather than enjoy.
And I know some bloggers claim to have retired at age 35 with a million dollars in investments, but don’t let them fool you, they actually just happen to be bloggers and authors. Running a blog is a job and those who have enough exposure to have articles written about them usually do thousands a month. It’s click-bait; don’t let them fool you otherwise.
The 45-year-old, or maybe even the 50-year-old, is still pretty early in the realm of early retirement, where the typical age of my cohort will be over 67.
What sense does it make to be a millionaire if you live forever on $ 30,000 a year?
I’ve lived as a beggar for most of my life, and my thought was that maybe I’ll have a taste of some good inflation in the old way of living for a few years and work a little harder; it is a fair compromise. Aside from my Aston Martin, I still live pretty skinny.
So while I would also like to leave the mouse race early, I also need to consider the route along the way. Forgive the pun!
The worst result
Save, invest and do everything “well” for the rest of your life, but then die soon or you’ll never enjoy your hard work.
How many times have you read about the modest janitor who lived in misery but was actually a diligent investor and bought chip stocks for 50 years and amassed $ 10 million in wealth when he died? His children are distinguished as bandits, but you have to wonder if he had any unfulfilled dreams that he wished he had seen off his list on his last day.
I realized that if I don’t do it now, when would I ever do it?
Now seems like a good time as always:
Excessive market valuation
I previously wrote about stock market overvaluation and bubble signs, so it seemed like the perfect time to take a risk off the table. Having experienced both the technology bubble and the real estate bubble and being 100% invested in the two ordeals was not fun. You can only fully appreciate the mental anxiety involved in seeing your net worth halve or more when you have experienced it. “I could have spent the money I lost on X,” is a common thought.
I firmly believe that the stock market has pushed forward future returns and that the next five years or so will be a mistake, if not a negative one. Look at the regression of the CAPE ratio against future ten-year market returns. Things seem pretty bleak as we are now over 35 years old.
Security is not shared with the bag. The worst time to buy is when everyone already has it. I’ll skip Warren Buffet’s platitude about greed, as you’ve read it a million times, but make no mistake.
The market could double from here, who knows? But the fear of getting lost (FOMO) is what causes people to beware of the wind and take too many risks. I can feel that the content loses some positive aspect and has a new source of enjoyment that is bought and paid for in the meantime.
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