I am 28 years old, no debt, 401 (k), IRA Roth and $ 45K in the bank. My parents want me to save for a house. I want a Tesla Model 3. Who’s right?

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Dear Quentin,

I’ve been switching between buying a new car or making a down payment on my first home. Since my parents are very interested in money and (still) keep an eye on my finances, I ran into trouble.

The original plan was to save up to 20% to 30% off the down payment on a suburban LA apartment and buy into the market in two years or so, and now I’m about 40% toward that goal.

However, with the green law potentially on the horizon again, the Model 3 was a lure, especially with all of the additional bonus incentives my state has to offer, with a final net price of around $ 27,000. You don’t really need a new car, but this seems like a great way to save some money on a car with smart features.


With the green law potentially on the horizon again, the Model 3 was a temptation, especially with all the additional incentives my state has to offer.

I am 28 years old without debt as of January 2021. In terms of retirement, I am on my way to achieving a maximum of 401 (k) contribution this year, and it has already exceeded my contributions to the Roth IRA, and if everything stays the same, I’ll take about 60k Dollars for retirement by the end of the year.

In terms of liquid assets and investments, I have about $ 45,000 at the moment. I am currently saving and / or investing 50% to 60% of my household salary, since I went home with my parents after being laid off last year and started a new remote job.

I don’t know if I should (a) buy the car directly and empty my savings as I will probably have time to save money again before a potential housing meltdown occurs, (b) Not Buying the car and continuing to save for the down payment, (c) do both, or (d) invest the money elsewhere.

As financial conservatives, my parents are fiercely against buying the car because it is a substandard asset, and they think entering the market should be my priority, so they think I should have my down payment waiting, to jump into the market whenever I see a good deal.

I think I can buy the car and pack it, and save more aggressively for a replenishment. Any advice for me?

Under parental pressure

You can email The Moneyist regarding any financial or ethical questions related to Coronavirus to qfottrell@marketwatch.com

Dear pressure,

what the hell! Surrender to your impulses, splash on the Tesla car
TSLA,
-8.55%

Model 3. You will be empowered by knowing that you are using your purchasing power to get America back on its feet, while making the wonderful statement that you finally got it. Arrive. Fully embrace the American dream of being a daredevil in the midst of an environmental warrior, driving Tesla, and tech age spirit. All we have is today, after all, and global warming is finally coming for all of us.

Wander around the neighborhoods where you want to buy a home in your 30s, 40s, or 50s (this will all depend on how much the real estate market is priced every now and then). Take a closer look at those homes, assuming they aren’t blocked by manicured hedges, and enjoy the view. Drive to your parents’ house, trumpet so they can enjoy seeing Elon Musk bold for themselves, and just then kindly ask them if they’ll free up space in their trail for your Model 3.

I’m kidding, of course. You have done everything properly so far. Buying a home first And the electric car worth 27 thousand dollars Later. You already have a destination in mind. Don’t allow a car, no matter how good you drive, to drive you away from that destination. Listen to your parents. They have seen more than they have seen. They are trying to put you on the path to financial freedom. Cute as she is driving And the To be seen driving, you don’t need Tesla to make it happen.

Monist:“Warren Buffett and Harry Potter couldn’t retire these two early”: Our wasteful neighbors said our advisor was “lousy”. So how do we retire early?

Hi there, MarketWatchers. paying off Moneyist’s own Facebook site
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A group where we look for answers to life’s toughest financial problems. Readers write to me with all kinds of dilemmas. Post your questions, tell me what you want to know more about, or consider the latest Moneyist column.

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