Would you stop riding for the rest of your life if someone gave you $500,000 cash?

[250rr]

Originally Posted by Alex

Mathematically true, but misleading. That same compound interest formula needs to be applied against the inflation rate.

http://inflationdata.com/Inflation/I...eInflation.asp

500k now doesn't turn into 10 times its worth in 40 years. It's more like 2 to 3 times its worth depending on what inflation (and investment) rates one makes as assumptions.

It's still a fantastic idea to invest early and invest wisely, just not quite as drastic as we try and sometimes tell ourselves.

/\ True that. If you lower the assumed return from 6% to 3% to cover for inflation (just an estimate, obviously), your 40 year number turns into $1.6 million. I just wanted to keep the idea simple for my own benefit, as math gives me a headache.

On the other hand, if you did nothing but buy a good and low cost S and P index fund (which, admittedly, would leave you with the risk of being invested 100% in the stock market. Not necessarily the correct move) the average inflation adjusted return since 1950 is 7%. At least according to http://www.simplestockinvesting.com/...al-returns.htm And the interwebs never lie!

Also, I couldn't agree more about the importance of investing early and wisely!

Bottom line, I'd take the money and run. Er, invest.

[Alex]

Originally Posted by 250rr

the average inflation adjusted return since 1950 is 7%. At least according to http://www.simplestockinvesting.com/...al-returns.htm And the interwebs never lie!

Yup! And you'll notice that they always start in 1950, because the gains from 1950 to 1960 are higher than any decade since. A more sobering (and perhaps more relevant) view is looking at times from 1990 - 2010, with a real total return of 11%, (in rough numbers, a gain of 0.5% yearly), a far cry from even the 6% that people like to use as a long-term number. That's the range that many 40-50 year olds right now are looking at and wondering why their 401K that they've been investing in dutifully for that 20 year period somehow hasn't returned 6% a year above inflation.....

[250rr]

Originally Posted by Alex

Yup! And you'll notice that they always start in 1950, because the gains from 1950 to 1960 are higher than any decade since. A more sobering (and perhaps more relevant) view is looking at times from 1990 - 2010, with a real total return of 11%, (in rough numbers, a gain of 0.5% yearly), a far cry from even the 6% that people like to use as a long-term number. That's the range that many 40-50 year olds right now are looking at and wondering why their 401K that they've been investing in dutifully for that 20 year period somehow hasn't returned 6% a year.....

Fair enough. Maybe we are due to revert to the mean! I sure hope so.

[Alex]

Me too!

[250rr]

Originally Posted by Alex

Pretty much the opposite of this. Where do you think the money is going when you invest in mutual funds? That fund is used to purchase stocks, bonds, and other financial instruments, which are primarily used by companies to function in that same economy.

+1

[Tigerpaw]

I'd take the 500k. It would get my family a modest retirement house & land. I would pay most of the daily bills with my upcoming USAF pension. A truly fun part time job could cover everything else.

Fast cars on fun roads would help me get past not riding.

[akima]

Originally Posted by CC Cowboy

Not just on bikes but on motorcycling (bikes, gear, traveling, and 10 years of racing).

10 years of racing Awesome! There seem to be quite a few people into racing on this forum.

[Sirref]

Originally Posted by akima

10 years of racing Awesome! There seem to be quite a few people into racing on this forum.

the 250 attracts people who want to genuinely learn how to control a motorcycle as well as people who are so goddamned good at it that they can't ride anything else on the streets without getting into massive legal troubles

[SeViC]

mmm that's more than what i'm going to get in the next 20 years of working.

soo yes i would take the 500k.

[akima]

Originally Posted by Sirref

the 250 attracts people who want to genuinely learn how to control a motorcycle as well as people who are so goddamned good at it that they can't ride anything else on the streets without getting into massive legal troubles

... that, and nooblets like myself!

I think I'd get myself in legal problems if I had a bigger engine. As it stands, I ride my poor little ninjette as fast as I feel I safely can everywhere I go... if I had a faster bike and I thought I could ride it safely at a faster speed, I'd probably end up riding everywhere at that faster speed!

If I ride at the pace of traffic around me I find it too slow and my mind tries to wonder off to think about other things when I should be concentrating. If I ride at my own pace, then I'm pretty much alert (and smiling!) the entire time, and concentrating on everything around me.

[ally99]

No. I'd want to spend it on bike stuff.

[Daks]

Considering that I ride mainly because it's cost-effective, sure. I'd invest that and live well for a while.

[Desmoluci]

Originally Posted by Sirref

I'd rather work my way up and end up with a garage filled with bikes and a few nice cars.

^^ This^^

Worked for me...

Not enough $$ in the world to tempt me from giving up bikes.

But I'm an old fart...

[Ninjinsky]

At 16 no at 60 yes

Though there would have to be:-

http://youtu.be/tMmWdjx34fs

[Sirref]

Originally Posted by Desmoluci

^^ This^^

Worked for me...

Not enough $$ in the world to tempt me from giving up bikes.

But I'm an old fart...

Nice, which model is that? C4, C5? I don't know corvettes well enough to tell

Personally my sportscar of choice is a miata for autocross and a lotus elise for the street/track. I see myself reasonably owning the miata, the elise depends on how well off I am financially when my mid-life crisis hits

[Finesse]

lol what kind of a question is this


**** NO!

only reason I need more money than I have is so I can put it into my bike(s)!

[nickjpass]

I would never give up rider. I don't enjoy anything else. Even with 10 million, I'd be living a dull life.

[csmith12]

Originally Posted by nickjpass

I would never give up rider. I don't enjoy anything else. Even with 10 million, I'd be living a dull life.

Hold up... 10mil and dull?!?!?!?!? You need a trip here brah!

[Ninjinsky]

Originally Posted by Sirref

the 250 attracts people who want to genuinely learn how to control a motorcycle as well as people who are so goddamned good at it that they can't ride anything else on the streets without getting into massive legal troubles

^ So True. That was why I downgraded from a GSXR, I knew that sooner or later the license would be in the shredder from youthful exuberance.
Here at last was a bike I could hold on full throttle for more than 3 seconds without setting off one of the 6000 speed cameras we have on this little island. Initially it felt like a Honda 90 but as I got used to it and the 14k redline. We developed a good relationship and I love the things she would whisper in my ear like "We just got 70 MPG"