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Early Retirement Investing: Ditch my 2018 Golf R?

Lmike6453

Ready to race!
Location
Norristown, PA
I am a bit angry with myself and could use some help here. I've always wanted a Golf R and had 2 previous GTIs...and 6 months ago I bought one!

It's amazing, and I absolutely love it. I can afford the $500/mo car payment (insurance is only $95/mo).

But soon after buying it, I started getting into investing, selling things I don't need, and moved to a lower cost living situation that is closer to work. I am much happier and I can't help but think that I'm crushing my early retirement age by not investing that $500/mo into investments. I don't even drive it as much since I'm closer to work and ride an e-Bike when the weather is nice.

What to do? I'm really tempted to sell it or trade it in for something else that's older / cheaper.

What to buy if I do? What can possibly compare to something like a GTI or a Golf R for the price...

Really thinking a manual transmission 4 cylinder anything that's reliable and peppy as possible.

TIA,
-Mike
 

Lmike6453

Ready to race!
Location
Norristown, PA
Your current age, and age at planned early retirement is necessary to know in order to have an informed discussion here.
Currently 31, early retirement age is just like the earlier the better. If I had to put a number on it, I'd say retire by 45.

4.5 years left on loan payments.
 

dsgvw

Ready to race!
I want in on these investments that are going to take you from $500/mo car payments to retirement in 14 years.

no joke.. I want in.
 

Sandman GTI

Drag Race Newbie
Location
Tennessee USA
How can we decide this?
It depends how much of a car person you are.
Sounds like you are not as serious about it and want other things.
Just remember, SS might not always be there.
You will have maybe 40 years to live on fixed income.
Will you always be healthy?
Married? Plans? If no then you also need long term health care unless a nephew or niece will care for you.
Not sure how one can retire at 45 with so many years left and no one can foresee issues.
What about just changing jobs to something you want to do.
Park Ranger, Tour Guide, Deep Sea Fishing Guide, Forest Gump Boat Captain.

Wish you well on the goal.
 

ogrisker

Ready to race!
Location
California
How can we decide this?
It depends how much of a car person you are.
Sounds like you are not as serious about it and want other things.
Just remember, SS might not always be there.
You will have maybe 40 years to live on fixed income.
Will you always be healthy?
Married? Plans? If no then you also need long term health care unless a nephew or niece will care for you.
Not sure how one can retire at 45 with so many years left and no one can foresee issues.
What about just changing jobs to something you want to do.
Park Ranger, Tour Guide, Deep Sea Fishing Guide, Forest Gump Boat Captain.

Wish you well on the goal.
a lot of variables, very true
 

ogrisker

Ready to race!
Location
California
I am a bit angry with myself and could use some help here. I've always wanted a Golf R and had 2 previous GTIs...and 6 months ago I bought one!

It's amazing, and I absolutely love it. I can afford the $500/mo car payment (insurance is only $95/mo).

But soon after buying it, I started getting into investing, selling things I don't need, and moved to a lower cost living situation that is closer to work. I am much happier and I can't help but think that I'm crushing my early retirement age by not investing that $500/mo into investments. I don't even drive it as much since I'm closer to work and ride an e-Bike when the weather is nice.

What to do? I'm really tempted to sell it or trade it in for something else that's older / cheaper.

What to buy if I do? What can possibly compare to something like a GTI or a Golf R for the price...

Really thinking a manual transmission 4 cylinder anything that's reliable and peppy as possible.

TIA,
-Mike
I plan to retire by 50. I married up (Corporate Attorney) :) part of the master plan to be a stay at home husband!!!!! buahahaha
 

Lmike6453

Ready to race!
Location
Norristown, PA
I want in on these investments that are going to take you from $500/mo car payments to retirement in 14 years.

no joke.. I want in.
Sorry I should have specified that I already am investing aside from the additional amount the car payment would provide.

With that being said, investing $500 a month consistently from a young age would be enough to retire on early.
How can we decide this?
It depends how much of a car person you are.
Sounds like you are not as serious about it and want other things.
Just remember, SS might not always be there.
You will have maybe 40 years to live on fixed income.
Will you always be healthy?
Married? Plans? If no then you also need long term health care unless a nephew or niece will care for you.
Not sure how one can retire at 45 with so many years left and no one can foresee issues.
What about just changing jobs to something you want to do.
Park Ranger, Tour Guide, Deep Sea Fishing Guide, Forest Gump Boat Captain.

Wish you well on the goal.
Yeah I feel like I used to be more of a car guy than I am now as far as having the fastest or nicest.

I'd categorize myself as a happy medium car (maybe a 2012 GTI) if I were to purchase again from scratch in 2019. Problem is I screwed up by buying new and just took a harsh depreciation hit.

For early retirement, I do plan to still work doing something I love for society like you mentioned. Like a phased retirement to still work, but not be so dependent on it at 43+ hours a week in a high stress environment.

Sent from my SAMSUNG-SM-G891A using Tapatalk
 

Aphron

CW :)!
Location
San Diego
Sounds more like you want financial independence, not early retirement but good luck! I was in the same boat when I got my car, I don’t make much but can pay extra on my GTI every month, and max my 401k. Most of America lives paycheck to paycheck, enjoy your car and keep it for a long time! Investing can be fun and sickening, but the r will constantly put a smile on your face I bet!
 

Charlotte.:R

Autocross Newbie
Location
Charlotte
Car(s)
'18 Golf R 6MT
I want to retire early too, but damn, 45? For us, health care costs are going to be one of the biggest sucks for early retirement.
 

Sumfuncomet

Go Kart Newbie
Location
Severomorsk, Russia
Car(s)
2018 Mercedes E63 S
Absolutely no new car is an "investment". They will continue to depreciate to a certain level. If you got rid of it now you would take a huge hit on depreciation. My advice, keep it, don't spend a nickel on any mods. Keep saving. At my age, 71, military pension, SS and real estate buying and selling have worked, also still working in my consulting business. Married to a physician who still works helps as well.
I think the mistakes I see people make is expensive trips abroad, jewelry and paying in full for a child's education. A kid needs to have skin in the game and pay for a portion of their education. I believe anything just handed to anybody is not valued as much as earning it yourself.That has been my experience in life.
 

CompactGT

New member
Location
RI - USA
I work in finance but I am not a financial advisor, this is not to be taken as formal financial advice. Ok, now that thats out of the way...

Giving up something you enjoy now for some nubulous concept of "financial independence" in the future seems like a bad idea. Buying a new car isn't a "mistake" unless you are one of those reddit penny pinchers. Buying only used cars gives you no market power to decide what companies sell. Depreciation happens, its just part of life. Everything you buy at a store depreciates immediately, cars just happen to be the bigger one we pay more attention to.

Treating a car like an asset is absolute madness, I see this all over the internet now and I don't know where it came from. Owning a car for 5 years is going to cost about the same regardless of the depreciation curve. Having a Camry worth $8000 vs having a GTI worth $5500 is not going to move the needle in the grand scheme of things.

Open an IRA, choose a Vanguard institutional fund, put 10-15% in a month. Then forget about it and live your life. You could get hit by a bus tomorrow, there is no sense in sacrificing your quality of life.

If you are, right now, desiring retirement at 45... I'd suggest career change instead. Either do something you'd be willing to do for longer or go into sales and make more money.
 

anotero

Autocross Newbie
Location
Hither and thither
Car(s)
Mk7 GTI
Currently 31, early retirement age is just like the earlier the better. If I had to put a number on it, I'd say retire by 45.



4.5 years left on loan payments.
Don't trade the fun in your young years. Work overtime now, retire at 45 and keep the R.
 

rmchung1

New member
Location
SoCal
Does this early retirement plan exclusion of having a family? Addition of a wife and/or kid(s) bumps up the annual expense line item....by a lot. Also factor in, if you're retiring at 45...which would be really nice, you have to think that you have to have money sitting somewhere that's enough to cover annual expenses every year for the next 30+ years. And healthcare only rises every year and gets even more expensive as you age.
 
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