Hypothetical question

[Jayda]

Should I sell my AAPL shares to pay off my car? I owe about 19,000 on the car with a 4 year loan at 2.1% (loan was initiated in October when I bought the car). I know I will accumulate little interest and would likely pay the car off in three years regardless. I am seeking free financial advice. I have better than doubled my investment, do I get out and feel satisfied or remain in? Funny thing is I posted something similar about a year ago contemplating paying off my 1 series when AAPL was near $400. I decided not to an I am glad I didn't. Any financial experts out there who can convince me a 700 or 800 price tag is realistic (and more satisfying than paying off my car)

[jparnes1]

Originally Posted by Jayda

Should I sell my AAPL shares to pay off my car? I owe about 19,000 on the car with a 4 year loan at 2.1% (loan was initiated in October when I bought the car). I know I will accumulate little interest and would likely pay the car off in three years regardless. I am seeking free financial advice. I have better than doubled my investment, do I get out and feel satisfied or remain in? Funny thing is I posted something similar about a year ago contemplating paying off my 1 series when AAPL was near $400. I decided not to an I am glad I didn't. Any financial experts out there who can convince me a 700 or 800 price tag is realistic (and more satisfying than paying off my car)

Easy question. Are you making better than 2.1% on your investment? The difference between your percentage gain in Apple and your 2.1% loss on your loan is your profit. Keep your loan; you'll end up ahead.

[Jayda]

Originally Posted by jparnes1

Easy question. Are you making better than 2.1% on your investment? The difference between your percentage gain in Apple and your 2.1% loss on your loan is your profit. Keep your loan; you'll end up ahead.

So you are convinced aapl will not drop back to $300-$400 and only go up, up, up? I am trying to decided between being satisfied and being greedy I guess! I do love my iPhone, iPad, ipod and Mac air!

[jparnes1]

Originally Posted by Jayda

So you are convinced aapl will not drop back to $300-$400 and only go up, up, up? I am trying to decided between being satisfied and being greedy I guess! I do love my iPhone, iPad, ipod and Mac air!

You didn't ask that question! Of course no one can predict the future. Based on Apple's current stock chart, I think they are due for a short term correction. Are you a long term (>5 years?) investor or looking for a quick gain? Long term looks promising. How about this - why don't you sell a portion of your shares and either pay off or pay down your outstanding debt and retain some shares to keep yourself invested in this company?

[Jayda]

Originally Posted by jparnes1

You didn't ask that question! Of course no one can predict the future. Based on Apple's current stock chart, I think they are due for a short term correction. Are you a long term (>5 years?) investor or looking for a quick gain? Long term looks promising. How about this - why don't you sell a portion of your shares and either pay off or pay down your outstanding debt and retain some shares to keep yourself invested in this company?

Or should I sell my LULU that I bought at near nothing because I love their yoga clothes and has done more than I ever thought possible including split. I actually have less confidence in this stock than AAPL. Perhaps a portion of each would be the way to go.

[Vintage]

Originally Posted by jparnes1

Easy question. Are you making better than 2.1% on your investment? The difference between your percentage gain in Apple and your 2.1% loss on your loan is your profit. Keep your loan; you'll end up ahead.

I do not think the answer is that simple. I know it looks like Apple will only continue to go up forever - but it never works that way. The prudent move with any amazing return is to lock in profits over time by slowly selling in a systematic and consistent manner. For example, sell 5% of the stock every 3 months and thereby guaranteeing a great return. Then reinvest that profit in other solid diversified blue chips (e.g. Exxon/Mobile might be nice if you can stomach it). The fact is, you just can't predict the future. I learned this lesson the hard way when the tech bubble burst in 1999ish and I was left holding a lot of tech stock that just months earlier was worth a fortune - I had been thinking I should cash some in and buy that BMW motorcycle I always wanted but ultimately did not thinking that the stocks will always be on a meteoric rise - how wrong and foolish I was at that time. Now I approach investing with a more logical head.

That was the long version - short version: if it were me, I would cash in a little stock and pay off the car, keep the e89 forever, and enjoy the heck out of it.

[Baremeg55]

Originally Posted by Jayda

Or should I sell my LULU that I bought at near nothing because I love their yoga clothes and has done more than I ever thought possible including split. I actually have less confidence in this stock than AAPL. Perhaps a portion of each would be the way to go.

It is always advantageous to pay off debt, however, this would be more relevant to paying off higher interests than you have on your Z4. As jparnes stated, if your stock is making better returns you should factor that into the mix. On one hand, you are making some good returns, on the other, you carry the risk the stock will decline and you will lose money (compared to selling now).

Stocks are a long term investment, period. I've known people that got out way, way too early and lost countless sums of money. Then again, I've known others that held on too long and regret not selling sooner. Including myself on both... I'm uncertain as to how much more Apple will gain, even though they are predicting massive sales on their iPad and iPhones.

Everyone's financial status is different. I think you've already received some good advice here. Several methods or ways to go, but only you can make that decision!!! Good luck!!!

[redhot]

On a fundamental level, AAPL can't be beat. Their P/FE is in the single digit...even lower than some of small companies as compared to AAPL in S&P. Unless the geopolitical environment in the world changes, this company is not going anywhere for the next few years. Can there be pullback in stock - yes! but one needs to have a longer term view of their investments.

If you can't stomach paying interest on the loan, then sell some and pay it off, however I'm a big proponent of a healthy leverage and credit as it builds your credit history and makes you not only desirable to credit card companies but some employers too!!

[Mr. ///M3 RD]

Originally Posted by Jayda

Should I sell my AAPL shares to pay off my car? I owe about 19,000 on the car with a 4 year loan at 2.1% (loan was initiated in October when I bought the car). I know I will accumulate little interest and would likely pay the car off in three years regardless. I am seeking free financial advice. I have better than doubled my investment, do I get out and feel satisfied or remain in? Funny thing is I posted something similar about a year ago contemplating paying off my 1 series when AAPL was near $400. I decided not to an I am glad I didn't. Any financial experts out there who can convince me a 700 or 800 price tag is realistic (and more satisfying than paying off my car)

Well one way would be to keep the stock and hope it keeps going up. Then it might not go up. Owning ones car outright is a great feeling, you can always start saving and purchase new stocks.

On the other hand if too many Paps do what the one in the video clip below does then leave your money in Apple for stocks will skyrocket

Here is a short funny video clip about the new iPad that I am sure contributed to move the Apple stock up and up

The clip is in German so I shall translate the content since the German dialog between father and daughter is quite fast.

Here is the translation; Daughter visits her father to help him cook his dinner. She asks him "Dad btw how do you like the
new iPad I gave you to your Birthday?" he then simply replies "Very good" then she goes on as he continues to prepare
his addition to the evening meal "You have no problems at all with any of the Apps?" he then response "What apps?" as
he motions her to move aside so he can add his food preparation to the pot. She steps aside and watches him in totally
shocked as he adds his part of the meal to the pot then proceeds to the sink and dishwasher returning to her asking
"What is it?"

Enjoy the clip ...

Click here to enjoy the short clip

BTW. I too enjoy all my Apple products (iMac, two laptops, first iPot, iPot Touch, iTV and the iPhone, no iPad yet ... planning to pick one up) ... changed over in 2000 and never looked back. I still have a Sony Desktop PC it is only used for personal finances and never connected to the Internet.

[Jayda]

Thanks everyone. I don't have other debt except a mortgage and I don't see messing with that now. I prefer Shell over Exxon so I have my eggs in that basket and have diversified with mutual funds and a range of stocks (outside of retirement). I too lost my socks around 2000 and I guess I am fearful of that happening again. Perhaps it is time to profit take.....but then again maybe not! The best thing to do might be to sell the darn car and buy a crap load more AAPL !!

By the way if I did pay off my car I would turn around and invest my my current car payment back into my portfolio.

[BMWZ4]

Personally I would sell and reap your profit. Presumably after you sell the stock and cover your capital gains (maybe from your losses in 2000?) there's enough there to cover the debt on your vehicle.

I don't believe Apple stock will go much further frankly, but that's just my opinion; perhaps a bit here & there over time, but as you know, technology stocks can be a gamble. All it takes is 1 or 2 quarters of Apple not delivering on something or delivering products with little to no improvement etc and voilà....analysts will hit them hard.

I'm sure the Apple fanboys will flog me for saying that, but that's what I think.

[Jay Zone]

The stock is predicted to hit 718 in 2012 due to ipad3 demand. Its still under valued and is headed for the moon. Dont even think about selling it. I bought it during the downturn at 84,my logic telling me it bottomed out and the iphone was doing very well and thinking it would go to 150 and I'd make a few more bucks. Been telling everyone to buy buy ever since and the naysayers have been calling me a fanboy all the way to the bank. Hold on to it Jayda. Its gonna be a wild ride. There are wild estimates of a 1000 some day. I think 850 is a safe bet.


They are sitting on 100 billion in cash. If they buy T-mobile. I'd bet on the 1000.


No matter what its gonna be wild ride worth going along. Stick with it.

[az34]

it may sound old school, but paying your debt is the best investment one can do.

[jparnes1]

Originally Posted by Jay Zone

The stock is predicted to hit 718 in 2012 due to ipad3 demand. Its still under valued and is headed for the moon. Dont even think about selling it. I bought it during the downturn at 84,my logic telling me it bottomed out and the iphone was doing very well and thinking it would go to 150 and I'd make a few more bucks. Been telling everyone to buy buy ever since and the naysayers have been calling me a fanboy all the way to the bank. Hold on to it Jayda. Its gonna be a wild ride. There are wild estimates of a 1000 some day. I think 850 is a safe bet.


They are sitting on 100 billion in cash. If they buy T-mobile. I'd bet on the 1000.


No matter what its gonna be wild ride worth going along. Stick with it.

Stock tips on the internet...

[Jayda]

Originally Posted by az34

it may sound old school, but paying your debt is the best investment one can do.

Yep old school really worked for my parents who never had a car loan or home loan (always bought outright) and taught me well to watch my pennies.....needless to say they think the Z4 is a bit "flashy" and "overstated" (they are near 90 and cars didn't do the things they do now in their day dad is fascinated by the concept of built in NAV )

[Dr Stig 2]

Investing in "Apple"?

Soooo last decade.

Get behind the new competitors coming out of the developing economies.

The new competitor is smaller, lighter, cheaper than Apple and garuanteed to give you the sh*ts on a regular basis instead of the hit and miss approach of the old Apple product.
Its called "Prune".

[Dr Stig 2]

Originally Posted by Jayda

dad is fascinated by the concept of built in NAV )

How does he feel about inside amenities?



You may laugh, but the first home I bought in 1988 (for a measly $57,300) was a 20 year old 2 bedroom highset on a large 32 perch block, and it did not have an inside toilet. Instead it was built in a separate room off the laundry under the house.
I was amazed that someone who built a house about the same time as man was going to the moon would still think that a WC could not be built inside the walls of a house for sanitary reasons.