# Investment Challenge



## '68er (Sep 16, 2009)

What do you guys think about the idea of keeping capital in stocks or a 401k long-term, versus investing in a collectible muscle car with the intention of keeping it to sell later? 

It seems there are various factors to consider for each. First for stocks and a 401k: What will the economic situation be like in this country 10-20 years down the road with massive government takeovers of the private sector, tax penalties on capital gains and investments, outsourcing of jobs and manufacturing, and massive third-world immigration straining our existing social safety nets. There's also the honesty and greed factor to consider with company executives that have less moral restraints and values today than in the past.

For purchasing a collectible muscle car, the things to consider are: What will the demand be like 10-20 years from now as baby-boomers are replaced by newer generations with less nostalgia for the muscle-car era, managing the upkeep and maintenance of the car, as well as the aforementioned problems that will affect all of us such as not-so-free-trade, outsourcing of our jobs to foreign nations and a general decline in the quality of life as government grows exponentially stifling freedom and the culture that spawned it etc.. 

If the decision was made to buy stocks or invest, what would you invest in?

If the decision was made to purchase a muscle car, which one of the following do you think would prove to be a better investment?

A 1970 Dodge Challenger RT/SE?

CarsOnline.com: Dodge Challenger For Sale

or A 1970 Plymouth RoadRunner?

CarsOnline.com: Plymouth For Sale


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## knaletko (Mar 26, 2010)

There are many things that you need to consider here. First, you are correct about the diminishing demand for muscle cars, therefore their value has decreased slightly in recent years. when you buy the car, you are putting all of your eggs in one basket- there is 0 diversification thereby increasing the risks associated with ownership. that being said, stocks are much more volatile, and is is easy to poorly choose stocks and lose all of your capital. if it were me, and the only two options were stocks and cars, i would put it in stocks, especially considering the added growth potential. 
With that being said, if you are truly planning on the long term, and want a solid investment, i would consider gold and silver. (it is what i am currently investing in) if you want more of the reasoning behind my decision let me know, but thats just my $.02


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## 66tempestGT (Nov 28, 2009)

looking for an angle to convince the wife?


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## Rukee (Feb 8, 2007)

It amazes me as how little info they give for the amount of money they want!!!!


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## Rukee (Feb 8, 2007)

My new wife has a 401k with stocks that has lost about 80% of it's value over the last 4-5 yrs. It's hardly worth anything now. Had she bailed out on top and bought a classic car or two, we'd be sittin sweet. But how was a layman to know? Even if it rebounds well now, there's so little left, can't imagine it'll ever reach the value it was at before.


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## xconcepts (Jan 4, 2009)

Rukee,

Don't fret on the 401K and stocks much. Yes they plummited 2 years ago but they are steadily on the increase again and I have talked to 2 huge financial managers that do this daily and lost a ton of money and are still putting funds into there 401 and stocks. Even though the prices are down now its best to buy more now for when the go back up, even close to what they were. 

Wish I would have put a ton more cash in the Ford stock I bought a year ago at 1.26/share. Its now close to 13/share and thats ford. CITI has doubled since I bought in 4 months ago...


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## geeteeohguy (Feb 2, 2008)

For the past 30 years, I've done the car thing as well as the 401k and private stock market thing. I have done better with the cars. I stll have a 401, and some Janus and T Rowe price accounts, but these days (last 10 years or so), they have not kept up with the cars. Any investment is a risk, and the more $$$$ to be gained, usually the more the risk. I was offered a #'s matching '67 427 'Vette roadster in 1987 for $15,000. It was a clean car that was an excellent driver that needed nothing. I guess I should have bought it. The same 401 I had around then that was worth 10k I rolled over 20 years later.....It had gained a whopping 3,000 in value (after being pretty much stagnant for 15 years....). No guarantees.....no crystal ball. Do as much research and homework as you can, and make the jump. Any investment is better than none, no matter what it is, IMO.


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## jetstang (Nov 5, 2008)

Cars are an investment you get to enjoy anytime you run out of beer, try driving your 401K to the Beer store..
I'm retired military, so I love my retirement plan. Anytime you base your retirement on stock fluctuation it seams like bad business. A buddy had $1million in his 401K at 62 years old, stock went from 100 to 10, 401K went to $100K... So much for being a millionaire.


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## Eric Animal (Oct 28, 2007)

I , over the last 30 years, have invested in Real Estate, and put my cash in slow growth SAFE investments. I lost some money on a couple high yielding Janus (leave the J off for what I now think).....You need to balance it out. 
If I could do it all again I would spend it on fast cars, liquor, and busty women....if there was any left after that, I would waste it!arty:


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## '68er (Sep 16, 2009)

knaletko said:


> There are many things that you need to consider here. First, you are correct about the diminishing demand for muscle cars, therefore their value has decreased slightly in recent years. when you buy the car, you are putting all of your eggs in one basket- there is 0 diversification thereby increasing the risks associated with ownership. that being said, stocks are much more volatile, and is is easy to poorly choose stocks and lose all of your capital. if it were me, and the only two options were stocks and cars, i would put it in stocks, especially considering the added growth potential.
> With that being said, if you are truly planning on the long term, and want a solid investment, i would consider gold and silver. (it is what i am currently investing in) if you want more of the reasoning behind my decision let me know, but thats just my $.02


Thanks for all the answers. Knaletko, what company do you invest in gold with? 

Btw, which one of those cars do you guys think is a better investment?


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## Goat67 (Dec 29, 2009)

knaletko said:


> ....if it were me, and the only two options were stocks and cars, i would put it in stocks, especially considering the added growth potential.
> With that being said, if you are truly planning on the long term, and want a solid investment, i would consider gold and silver. (it is what i am currently investing in) if you want more of the reasoning behind my decision let me know, but thats just my $.02


I agree with stocks vs. cars. My investment in a GTO was strictly for my own enjoyment. Even if it increases dramatically in value, I don't anticipate selling it. For coins (which I also collect) experts strongly advise not building a collection as an investment. It might be worth a lot when you go to sell it, but rarely as much as you've put into it. 

I am not convinced about buying gold and silver as long-term investments. I think it's OK if they are part of a diversified portfolio. The price of both has been very volatile over the years with long periods of absolutely no growth. The period from 1980 to about 2000 was a period of long, steady decline in gold prices, and when adjusted for inflation, it has yet to get anywhere near the record price from 1980.




xconcepts said:


> ..........Even though the prices are down now its best to buy more now for when the go back up, even close to what they were.


I agree completely about this. If you put money into a 401K account on a regular basis, you buy more when the market is down and when it goes up your appreciation is that much more.


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## knaletko (Mar 26, 2010)

have you seen either of these cars in person? if they are truly what they say they are, then i would go with the Plymouth, but thats simply because i i really like Cuda's and Road Runners. 
on a separate note, i have purchased gold from many places, and have found my favorite to both buy and sell to be locally here in Jersey, as they charge very little above spot and will only sell NGC graded coins...


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## knaletko (Mar 26, 2010)

Timing is everything, and when I say long term I honestly mean long term, gold and silver are an excellent investement IMO, lots say that in the 1930's you traded In 20 dollars in paper money for gold, either would have bought a months worth of food for your family, today, however the gold will buy the same months worth of food, while if you kept it in paper money your lookig at less the A weeks worth, long story short, gold ( in the long tterm witll store value, timing considered of course. Futhermore, if you pass it on to someone else, ie children, it is a tax free asset...
This is my reasoning, plus I'm bullish on the dollar, which benefits precious metals... again, just my $.02


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## knaletko (Mar 26, 2010)

Sorry for the sloppy/rambling nature of the prior post, I was trying to condense alot, and it was from my iPhone


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## jetstang (Nov 5, 2008)

With the country going down the crapper and America giving away world power, gold is the only choice. Think about it, as America fails the dollar will be worthless, but gold will always have a real value based on the Euro and other foreign currencies. That is why their predicting gold will be be worth $2k an ounce this year, not because gold is worth more, the dollar is worth less. As we fail it could go to $10k an ounce or more. Gold is the depression investment... With gold, you will never be poor, it won't fail..


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## knaletko (Mar 26, 2010)

:agree


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## Too Many Projects (Nov 15, 2008)

'68er said:


> Thanks for all the answers. Knaletko, what company do you invest in gold with?
> 
> Btw, which one of those cars do you guys think is a better investment?


UUUUUmmmmm.........this is a GTO forum not Chrysler. We may not be the ones to ask. The prices for Chrysler cars has been phenomenal the last several years but it will drop like a rock like they all do at a certain point. You're going to pay a premium for an "investment grade" Chrysler right now and it may loose more than your 401k in short order. The whole strategy of investing is to buy something cheap that you "think" will appreciate and take your chances. 

I wish I had bought a ton of gold 40 years ago at $32/oz


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