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I'm not retiring yet, at least not within the next 10 years or so. But I am thinking, and perhaps even wondering, how much money I should set aside for the automotive purchases of the future. Anyone here go that strategic with their retirement plans yet? Or am I just thinking too much.


Or I should just keep my 1M until it rots into biodegradable panels and rust piles. That's also doable. Not looking at driving anything faster from now on, I'm getting a bit more active with my lifestyle, which oddly enough means doing less things in a car.

Anyway, I just want to see how many of you are really planning for your retirement, and how you'll plan on having money for car stuff.
 

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I am ~35 years away from my own retirement, so as of now the bigger nagging questions are saving for my kids' college funds, etc.

That said, I am an estate planning attorney, and I have done a couple of estate plans for car enthusiasts. One in particularly was close to retirement age. He was worth ~$2M, so a good amount, but by no means rich.

We basically set up a trust (let's call it the "Car Trust"), and funded it with $250k. That was his lifetime allotment for cars. He could either invest it in appreciating cars, or see it dwindle away by buying new cars. I never followed up with him to see how it worked out. But that is one option.
 

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I'm 35 years away from retirement, so I'm probably not too much help. I don't personally tie up a ton of money in cars unless I can break out of them cleanly, or make money back on them. By retirement age, chances are I'll look at under perfoming parts of my portfolio, and swap those funds into safe vehicles.

Having worked in the car business, I don't need the newest/latest/greatest. With a fixed income, I'd be apt to find fun cars that are on the bottom of their depreciation curve, or are rising. If that means I don't get the new Z06, then so be it. 35 years from now, I'd rather have a fun 20-30 year old bottomed out exotic as a weekend car rather than a new something or other, and if you go to CnC, you can see plenty of retired guys who do exactly that. Park the money in a safe place and enjoy a car, knowing you can flip out of it if you need money.

Of course, if I retire with a metric isht ton of wealth, this might change, but I'd probably just use that money to travel anyway.
 

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I am probably 20 years from retirement and I've thought about it fairly regularly. My current cars are a Honda Accord, WRX and a Corvette. 10 years from retirement I plan to buy the newest sports car I can afford at that time and plan on that being my "keeper" sports car. Right before retirement I plan to pay cash for two new daily drivers, something along the lines of an Outback (or similar) for me and a Camry (or similar) for my wife. Whatever cars I buy won't be luxury cars. They'll be fully optioned but I don't want to pay luxury car dealership prices for service and parts. I would prefer to pay lower tier level service costs since we'll be on fixed income and I'd like those cars to be extremely mainstream so that parts/supplies are plentiful and inexpensive. That's the plan anyway.
 

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I'm 13 or 14 years out at this point, but our retirements have taken a turn to setting up funds to care for our daughter after we're gone. I'll still want to find fun cars with the bulk of depreciation gone, but plans for hotrods and sports cars have been taken even off the back burner and put in the pantry for now. Maybe I'll wear a blue, red, or orange vest and spend my mornings welcoming people into my store for a while to afford mods. :D
 

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LOL. More money than 95% of people in the USA will ever have, and more than 99%+ of the world will ever have, and he's "by no means rich". Comedy.
Well, anyone on a middle class income can easily invest and save enough to have 1 to 2M by the time they are 65 if they start early enough. Problem is, few people do.
 

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LOL. More money than 95% of people in the USA will ever have, and more than 99%+ of the world will ever have, and he's "by no means rich". Comedy.
It's all relative, of course. As are all of these discussions. But a "net worth" of $2 Million often means that the client owns a ~$750,000 house, has 401(k)'s/IRA's worth $1 Million or so, and maybe another $250k in marketable assets/cash/assets.

So yes, very comfortable. But if you think that you can retire in five-star luxury on that level of assets, then you are mistaken. At least not if you want to make sure that your money lasts longer than you do, and that your children have some level of inheritance/legacy left for them.

I do estate planning. My clients' net worths range from ~$500,000 to over a Billion Dollars. So I see it all. And believe me, everything is relative.
 

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At this point I don't see how retirement is going to be an option. I'm 51, but 20 years from now would be the soonest I could retire. With a paid-off house and no car payments and no kids in college it might be doable then. My car plans? Cheap and reliable and hopefully with an old Beetle to tinker with is about all I think I'll be able to ask. No 911s for me. :(

medical debt isn't fun, nor is our "affordable" health care system. Between the two I'm totally drained and not in as good of a position as I was just a few years ago.
 

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It's all relative, of course. As are all of these discussions. But a "net worth" of $2 Million often means that the client owns a ~$750,000 house, has 401(k)'s/IRA's worth $1 Million or so, and maybe another $250k in marketable assets/cash/assets.

So yes, very comfortable. But if you think that you can retire in five-star luxury on that level of assets, then you are mistaken. At least not if you want to make sure that your money lasts longer than you do, and that your children have some level of inheritance/legacy left for them.

I do estate planning. My clients' net worths range from ~$500,000 to over a Billion Dollars. So I see it all. And believe me, everything is relative.
None of that precludes someone from being considered rich. Like you said, it's relative. Relative to nearly everyone else on the planet, they're rich.
 

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I feel the first thing you need to define is if you're talking about entertainment or transportation. Today you might own an entertainment car that you also use for transportation, but they really are separate things. Like when SFV talks about somebody having a $250,000 car fund, that's obviously entertainment money, not transportation. If you care purely about dead reliable transportation you wouldn't even set up a fund at all, you'd just lease a new Camry/Accord/whatever every 3 years and enjoy having a fixed monthly expense for a transportation object that is under warranty and shouldn't have any significant maintenance expenses during the lease. So if we're talking about transportation, just look at it as, say, $300/mo of payment/insurance/fuel that is part of your regular expenses.

If you're talking about "fun" car and whatever, then instead of saying you are putting money aside for a car, mark it down as entertainment. I've owned 4 performance cars in the past and am getting old enough that I'm not sure I need to own a 5th. Performance cars are for entertainment, and there's just so many other things I'd like to put those entertainment dollars towards, such as visiting national parks and places on Earth that I've never been before. I've driven enough different cars both of my own and borrowed for autocrosses and the like that I feel as though I've largely scratched that itch. You too might feel that way when you're older. Budget it as entertainment and then you put the money towards whatever you want, whether that means an entertaining car, a cruise, or following your favorite sports team from city to city.
 

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Retirement is a concept that's a bit too far away from me to think about beyond managing my 401k investments. I'm not even 100% sure I will retire either based on a lack of desire or for financial reasons. But I have wondered what I would drive if/when I actually make it to retirement. I think I might like to act my age and acquire some type of comfort-focused vehicle. Perhaps a big boat like an A8L, some generation of SL roadster, or 6 series convertible. I can't even imagine what the automotive landscape will be like in 30 years. Or my actual financial situation at that time.
 

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I feel the first thing you need to define is if you're talking about entertainment or transportation. Today you might own an entertainment car that you also use for transportation, but they really are separate things. Like when SFV talks about somebody having a $250,000 car fund, that's obviously entertainment money, not transportation. If you care purely about dead reliable transportation you wouldn't even set up a fund at all, you'd just lease a new Camry/Accord/whatever every 3 years and enjoy having a fixed monthly expense for a transportation object that is under warranty and shouldn't have any significant maintenance expenses during the lease. So if we're talking about transportation, just look at it as, say, $300/mo of payment/insurance/fuel that is part of your regular expenses.

If you're talking about "fun" car and whatever, then instead of saying you are putting money aside for a car, mark it down as entertainment. I've owned 4 performance cars in the past and am getting old enough that I'm not sure I need to own a 5th. Performance cars are for entertainment, and there's just so many other things I'd like to put those entertainment dollars towards, such as visiting national parks and places on Earth that I've never been before. I've driven enough different cars both of my own and borrowed for autocrosses and the like that I feel as though I've largely scratched that itch. You too might feel that way when you're older. Budget it as entertainment and then you put the money towards whatever you want, whether that means an entertaining car, a cruise, or following your favorite sports team from city to city.
Oh absolutely. Hobby money is hobby money, whether that's cars, boats, travel, RC stuff, horses, sports, whatever. I think that goes without saying almost for anyone planning their car enthusiast activities for retirement that they're doing it for entertainment rather than transportation budget.


I'm quite a ways off from retirement, and at this point I'm basically counting on 'mortgage being paid off' to free up entertainment money. 24 years to go, but thankfully we're already in our forever home so the clock won't reset on that.
 

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I live in a suburb with a pretty high elderly population. There's been about 3 fatal vehicular assaults by bluehairs in the past year.

I'm planning to buy a condo in a posh downtown neighborhood, take the train and Uber everywhere. I'll keep my dream car up at the lake house, and/or have my grandkids drive me around in it.
 

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Well, anyone on a middle class income can easily invest and save enough to have 1 to 2M by the time they are 65 if they start early enough. Problem is, few people do.
Any particular sorts of investments? I've been looking into this heavily since I'm about 25-30 years out (should have started earlier)...curious what your thoughts are.
 

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Any particular sorts of investments? I've been looking into this heavily since I'm about 25-30 years out (should have started earlier)...curious what your thoughts are.
No.

Diversify. If you are just starting out, by ETFs that track well-established funds. You should not be out there trying to stock pick . . .
 

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our current plan is to retire early. somewhere between 50-55. we will see how we feel about work when we get there, but i assume that we will just retire from full-time employment not all paid work.

our plan does not account for specific expenses like expensive cars and trips.
it is shooting for matching income at retirement age (plus inflation etc), which should mean if i could afford it now... i can afford it then.
we have about $50k/yr heading into retirement and savings accounts right now. obviously in retirement those funds could be put to other uses.

also have a couple of 'aces'... beyond retirement accounts, my wife has a pension and a fairly sizable future inheritance (though i will admit this inheritance is NOT part of my planning).
plus the plan includes paying off our rental house, which if paid right now would be $1300/mo income.
these things will just add to the available retirement funds.

also. since schnell brought it up. we are maybe a little odd in that i dont have any plans to save for kids college. i started accounts for both, and funded each $2k... then thought why? so now the money is a little stuck.

what if the kids dont want to go to college? trade schools, skilled worker apprenticeships, just being damn lucky/good with computers, or the military... they are all good, viable options and may not use up all/any of an amassed college savings.
you also can get grants, scholarships, and loans for schooling... both the wife and i had some loans, and we turned out fine. ;) plus we can always help pay for school ad-hoc or after the fact... AND no one is giving out loans for retirements.
 

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No.

Diversify. If you are just starting out, by ETFs that track well-established funds. You should not be out there trying to stock pick . . .
Agree 100%; ETFs with a low cost ratio.

Max your 401K. At least to get the max company match if applicable. Manage a small after-tax Roth on the side.

Retire with a couple million and laugh at those who didn't...
 
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