I’ve been constantly thinking in 7 years I’ll be debt free. At that point I’ll decide my next financial move in terms of either getting more real estate or living off the passive income I already make.
This got me thinking today that what I would be excited about would be the ability to transition from a budget collector to one that can splash a bit more money around on cards easier. With current prices though and how they’ve been increasing its hard to imagine how much a PSA 10 1ST Ed Charizard would be in 5-10 years. Will it be stagnant? I doubt it. Will it get up to $30-$40,000? Who really knows.
MTG is 6 years ahead of Pokemon so maybe by that time a PSA 10 1st Ed base zard would be worth what an alpha black lotus PSA 10 is worth today, upwards of $100k.
PSA 10 is $20,000 and the auction hasn’t ended. On the assumption that the auction ends at $20,000 (which it won’t, therefore this is a conservative estimate) a $30,000 price for a psa 10 charizard in 5 years would mean an annual growth rate of approx 8.4% very realistic.
Your loans should have low interest so don’t bother trying to pay them off quicker than you have to. Put your extra income into something with a better ROI.
Paying off debt is a guaranteed return and there is no substitute for the feeling you get when are you free from debt. Nothing has a better guaranteed ROI than paying off debt, especially if/when you are talking private student loans, credit cards, auto loans or other high interest “bad” debt.
don’t forget the other glaring assumption in that video that you’ll be able to find a fund that averages 7% ROI for 25 years straight AND have a monthly income well above $7500 gross for that entire time (and even then, 50% of your monthly income after tax is going to your mortgage/investment fund)
I’m really not interested in going into financial debate, as that’s not why I’m a part of this forum. I will say go talk to a financial adviser. If they told you to pay off your low interest loan I’d be shocked.
I assume in the video these people are living in this houses? I rent mine out, the income from the rent granted is less than the Alice example but higher than the Bob example. How does that change things?
Edit: Forgot to mention my interest rates are 4.93% p.a and 4.32%p.a
Like I said in my past post go talk to a financial adviser. I’m not an expert and wont pretend to be one. I know in my personal life my family had a lot of issues with money so I tried/still try my best to avoid that situation. It’s surprising how little we get tought about good money advice. Here’s a big one that everyone should know, if you put your money in a bank savings account you’re losing money.
If you’re interested in finding good advice talk to an expert that gets paid to do it, a lot of firms will consoltate for free, just ask before setting up a meeting. It’s even better if you can find someone who does it that you know, you’d be surprised who you might know if you take a look.
When I wrote my reply I hadn’t seen yours. I’ve never been too to interested in investing but I might go talk to a financial adviser if I have some free time.
@cullers I did leave off mortgage as one type of debt when I was talking about paying off debt. I mentioned CC/Private student loan/car etc. basically anything 5%+ IMO is bad debt that needs to be extinguished before anything else. Primary home mortgage is one of very few “good debts”. It is the only one I currently hold as my own is at 2.625% as it was a 15 year taken out in 2013. I get a guaranteed 3% return on a fund in my 401(k) which is where I divert some of my extra money I would have otherwise paid the debt down with had it been a higher rate. The bulk of my 401(k) however has been doing much better than 3% though in various funds but that isn’t a guarantee and certain years it will definitely see decreases of 10%+. I would not be loading into my 401(k) or IRA if I had 20%+ credit card debt which I see some co workers do which to me is insane.
Back to OP, it sounds like he already has a plan in place to pay off the debt, which is why I countered what Morgan was saying to reinforce his choice. IMO, even if losing some possible return, I think it is almost always the best way to go. The peace of mind coming from not owing anybody any money is amazing.
Waiting on the charizard IMO will provide the better results taking into consideration lower risk, likely higher yield and better peace of mind IMO @elftan especially if we are talking any debt over 5%.
In Australia primary home debt is bad debt. Debt associated with investment assets such as an investment property or stocks is good debt as the interest repayments associated with it are tax deductible.
Talk about removing the negative gearing benefit has been talked about for over a decade. Nothing has been proposed. There are too many interested parties that would be affected by such a decision as well so if it were to be pulled through parliament a grandfathering clause coyld apply (where people who already have investment debt in place can continue benefiting from deductibility on the interest). Legislative changes are always a risk when it comes to investing and structuring of assets.
This guy a couple weeks ago posted his PSA 10 1st ed Charizard Base Set for $18,621 with OBO. A fake buyer bought it and he relisted it for the same price and can’t sell this card even with OBO. The PWCC auction actually goes over $1000 more than this guys Buy it now with OBO.
Idk what to make of this but it just seems so weird and unnatural. A lot of these high value cards sit for ages but as soon as PWCC lists the same exact cards their prices jump by 100s if not 1000s. It would also be kinda crazy for zard to reach Black Lotus value because unlike Zard Black Lotus actually has the rarity to match its iconic stature. Not saying Zard isn’t rare but it’s not even close to being as rare as Black Lotus. Not even unlimited.
Why do people only use half the equation? It’s supply and DEMAND that equate to prices. There’s plenty of cards that are rarer then Charizard, but many of them don’t demand the price Charizard does. It’s the same with the people trying to spout out that PSA 9 shadowless will out value unlimited 10. Quit using half the equation to justify your thought processes.
Disclaimer* I’m not picking on you lolzicost, I’m using your comment as a jumping point. Quite frankly I find it wierd that I have to constantly make this statment. There’s too many thin skined individuals that take things personal.
I just wonder what the demand will continue to be? This year there have a been a 3-4 sales if I remember correctly. As the go to fetch card of the series without the inclusion of trophy cards I’d assume it would stay high.
Notice I said “unlike Zard Black Lotus actually has the rarity to match its iconic stature”. I already know that rarity doesn’t always equal more value. You’re forgetting that Black Lotus is just as if not more iconic than 1st ed Base set Charizard to TCG. This is LITERALLY the most sought after card in all of Magic with an incredible rarity. Rarity matters a ton when both cards are highly sought after.
I mean cmon, ungraded Zard matching the value of an ungraded lotus? ridiculous lol. If charizard ever reaches 6 digits, Black Lotus will be at 7 and that’s just how it is. BTW this only applies to PSA 10s and below but BGS 10 could definitely match if it maintains its rarity.
