DVC vs Mutual Fund

[tomandrobin]

You need to make sure you take care of financial goals and commitments first!

But all work and no play is not healthy either.

Maybe invest $10,000 in a mutual fund and buy DVC points with the other $10,000...Now you have balance!

FYI - There are about 18 contracts fo rsale by our host for around $10,000.

 

[Cruelladeville]

Well, I disagree with some of what has been said here, because I experienced this. I received $40,000 due to a death in the family, and I divided it in half, investing $20,000 and buying my second DVC contract with the other 1/2. I bought it in 1997 at $56 per point, and sold it just this year. I made more on DVC, partly because I rented my extra points every other year. That's $12,500, which paid all my dues, and my profit was the difference between $56 and $85. Now, I didn't plan this, I was lucky it happened. But my $20,000 investment has gone up and down over the years, but it basically makes about $1000 per year. I enjoyed the DVC alot more, though, and bought with the assumption that I would have it for 50 years. I sold because I retired this year, and frankly, I found that I can't really afford to take 4-6 trips per year, so I got rid of one contract. It turned out to be a good investment for me, but I didn't plan it that way. In either case, you aren't going to get rich.

 

[tomandrobin]

In either case, you aren't going to get rich.

Now isn't that the plain and simple truth!

 

[dumbo71]

dumbo71;16974783] Please people, there is more to this world than a trip to see the greedy mouse.
So why exactly are you a DVC member?

You beat me to the question I have been wanting to ask-

Ahhhhh... now we are getting down to business. I own becuase I can. I worked my tail off to give my family everything in life. I have a million dollar plus home that is paid for in cash, my cars are paid for, I am debt free. College funds for my son are growing as we speak, I have money invested that produces me a large salary. I'm living debt free.

How and why? Because I had the foresight to forego certain things in life until I could afford them. Financing stuff....... nope, not going to do that. In this world of spend now screw tomorrow I chose to do the reverse. I saved 70 - 80% of what I was making for the last 20 years and that includes what I made as a kid working. I had $30,000 saved when I graduated high school. I lived in a modest 2000 sq. feet house while I was makiing $200,000 a year. Friends used to ask me why I was driving a Toyota and living in a starter home. I told them, you'll see why. Well now they see how I'm doing at age 35 and they know.

Do I love DVC, sure in some ways, but you know what really irks me is when many here tout DVC as the end all and give a blanket recommendation of buy to all those who ask about this program. DVC is NOT right for most. You know what it isn't just DVC either. My sons babysitter owns a Timeshare. The family has nothing. They will likely fall into bankruptcy soon according to her. That company had no business selling them a Timeshare but guess what they still did. Bankruptcy cocst us all money and I'm tired of picking up the tab for others bad financial planning.

Everyone is free to make their own financial decisions. Do what you want with your money, folks, but please don't act like DVC is a need. It is NOT. I wish they would change the laws and anyone owning a silly luxury purchase like a Timeshare, boat, RV, etc. cannot file bakruptcy. Time for some accountability in this country.

You know what I just bought a timeshare in Mexico. No financing available there. Well 16% if you want to pay that. It is assumed that when you buy a Timeshare you will be paying cash for it. Wish it were the same here. It would be one less sob story I'd have to hear at DVC while sitting poolside.

 

[dumbo71]

It's too easy and glib to say things like "if you can't pay cash you shouldn't go". Not good form.

Not good form? I can live with that because if you can't pay cash then you shouldn't go, period, end of the story. I love these people who travel and live on credit.

I had a neighbor years back when I lived in VT. I lived in a modest starter home comunity. This neighbor lived large. They had 2 Mercedes, a boat, pool, etc. They dressed to impress everyday and traveled all over. My wife thought they were rich and used to say as much. I'd just snicker and say something doesn't add up. Well I was right. The wife tels us her husband had left her for another women. She also spills the beans that the guy is a con artist and moves around the country running up all kinds of debt. They hadn't paid the mortgage in 14 months either. I watched the repo guy take those cars. Not fun or pretty to see.

I aso grew up in a house of spenders. My parents have filed bankruptcy twice wanting me to bail them out. I don't know what you fellow board members can afford but I know society all too well. I also see how many bankruptcies get filed in this country each year. It is truly sad.

 

[tor]

Ahhhhh... now we are getting down to business. I own becuase I can. I worked my tail off to give my family everything in life. I have a million dollar plus home that is paid for in cash, my cars are paid for, I am debt free. College funds for my son are growing as we speak, I have money invested that produces me a large salary. I'm living debt free.

How and why? Because I had the foresight to forego certain things in life until I could afford them. Financing stuff....... nope, not going to do that. In this world of spend now screw tomorrow I chose to do the reverse. I saved 70 - 80% of what I was making for the last 20 years and that includes what I made as a kid working. I had $30,000 saved when I graduated high school. I lived in a modest 2000 sq. feet house while I was makiing $200,000 a year. Friends used to ask me why I was driving a Toyota and living in a starter home. I told them, you'll see why. Well now they see how I'm doing at age 35 and they know.

Do I love DVC, sure in some ways, but you know what really irks me is when many here tout DVC as the end all and give a blanket recommendation of buy to all those who ask about this program. DVC is NOT right for most. You know what it isn't just DVC either. My sons babysitter owns a Timeshare. The family has nothing. They will likely fall into bankruptcy soon according to her. That company had no business selling them a Timeshare but guess what they still did. Bankruptcy cocst us all money and I'm tired of picking up the tab for others bad financial planning.

Everyone is free to make their own financial decisions. Do what you want with your money, folks, but please don't act like DVC is a need. It is NOT. I wish they would change the laws and anyone owning a silly luxury purchase like a Timeshare, boat, RV, etc. cannot file bakruptcy. Time for some accountability in this country.

You know what I just bought a timeshare in Mexico. No financing available there. Well 16% if you want to pay that. It is assumed that when you buy a Timeshare you will be paying cash for it. Wish it were the same here. It would be one less sob story I'd have to hear at DVC while sitting poolside.

With all that you have it is to bad you couldn't figure out a way to get by with out a baby sitter. Some things are more important than money.

 

[Pennyguy23]

Ahhhhh... now we are getting down to business. I own becuase I can. I worked my tail off to give my family everything in life. I have a million dollar plus home that is paid for in cash, my cars are paid for, I am debt free. College funds for my son are growing as we speak, I have money invested that produces me a large salary. I'm living debt free.

I usually like your answers but come on. I have a "million Dollar home". I'm sure Alot of people own Million Dollar homes, Shoot a millin dollar home is 2000sq ft nothing in anehiem. He didn't ask WHAT you owned, but WHY you owned.

I do agree with you on the bankruptcy. But I thought I read something a while back that they did change something about it, that is wasn't so easy to do

 

[tor]

I can't say this enough but the vast majority of DVC owners have no business owning. They can yell, rant, flame me, whatever they want it is true. If you can't pay cash comfortably then the money likely could be used elsewhere.

I agree it should be all mine, mine I tell you now everybody get out.

 

[DVC Grammy]

I agree it should be all mine, mine I tell you now everybody get out.

!

 

[JWG]

This is officialy my favorite thread of the week.

I don't necessarily disagree with dumbo71, he just didn't say it in the nice loving way we desire.

 

[jcf]

Could use that lady about now - don't remember what she was selling though

 

[Fatalbie]

DVC "timeshare" I think!!

 

[NemoMOm]

Ahhhhh... now we are getting down to business. I own becuase I can. I worked my tail off to give my family everything in life. I have a million dollar plus home that is paid for in cash, my cars are paid for, I am debt free. College funds for my son are growing as we speak, I have money invested that produces me a large salary. I'm living debt free.

How and why? Because I had the foresight to forego certain things in life until I could afford them. Financing stuff....... nope, not going to do that. In this world of spend now screw tomorrow I chose to do the reverse. I saved 70 - 80% of what I was making for the last 20 years and that includes what I made as a kid working. I had $30,000 saved when I graduated high school. I lived in a modest 2000 sq. feet house while I was makiing $200,000 a year. Friends used to ask me why I was driving a Toyota and living in a starter home. I told them, you'll see why. Well now they see how I'm doing at age 35 and they know.

Do I love DVC, sure in some ways, but you know what really irks me is when many here tout DVC as the end all and give a blanket recommendation of buy to all those who ask about this program. DVC is NOT right for most. You know what it isn't just DVC either. My sons babysitter owns a Timeshare. The family has nothing. They will likely fall into bankruptcy soon according to her. That company had no business selling them a Timeshare but guess what they still did. Bankruptcy cocst us all money and I'm tired of picking up the tab for others bad financial planning.

Everyone is free to make their own financial decisions. Do what you want with your money, folks, but please don't act like DVC is a need. It is NOT. I wish they would change the laws and anyone owning a silly luxury purchase like a Timeshare, boat, RV, etc. cannot file bakruptcy. Time for some accountability in this country.

You know what I just bought a timeshare in Mexico. No financing available there. Well 16% if you want to pay that. It is assumed that when you buy a Timeshare you will be paying cash for it. Wish it were the same here. It would be one less sob story I'd have to hear at DVC while sitting poolside.

You sound very upset for someone who is doing so well. I have been reading these forums for awhile now while I gathered info before we bought. I have never read anything in regards to people financing DVC and now they can not pay their bills. I have read where someone had unforseen cirmcumstances and sold their DVC for some extra $$.However, that is a far cry from bankruptcy. We too own DVC and we have been saving since we met at 18. We bought our first house at 23 while putting ourselves through coellege. As I mentioned before we have all the 401k, mutual funds, savings, college fund, and a house worth 2.5 times what we owe because we built it ourselves (well we just acted as GC and did alot of minor things but resulted in big time savings). And yes, we do have a mtg. our fin. advisor advised against paying off the house because of the large tax benefits. We will eventually, but not for awhile.

I'm not sure why other people care how others spend their money. If someone complains to you that they can not afford their DVC advised them to sell it. They do VERY well on the market, I know because we considered it.

Let's face it, vacationing peroid is NOT an investment or a even a smart money move. However, for some people it is a real need for health in both the body and the mind. You must feel that way too or you would notown 2 timeshares. And no one told the OP that they MUST buy DVC, but that they considered a must for them. And, hey it is their money

 

[dumbo71]

I usually like your answers but come on. I have a "million Dollar home". I'm sure Alot of people own Million Dollar homes, Shoot a millin dollar home is 2000sq ft nothing in anehiem. He didn't ask WHAT you owned, but WHY you owned.

I do agree with you on the bankruptcy. But I thought I read something a while back that they did change something about it, that is wasn't so easy to do

Sorry, the point wasn't about what we all have or don't have. My point is being lost in my rant. My major point is that I feel Timeshares should be for those that can afford the luxury not those that can simply afford the payments each month.

ETA: I don't think the quote thing is working. I didn't quote myself and I've seen Casterli quoted when they were my quotes????????

Also my big thing is that this board seems to have the mentality that DVC is a necessity of life, it is not. I'm also not saying these board members are in bankruptcy, I don't know the firtst thing about everyones's finances.

What I do know is that when a poster states they have $20,000 and what should they do with it my answer will never be buy a Timeshare, never.

I'll bow out of this otherwise interesting topic.

 

[Mickmse2002]

Not good form? I can live with that because if you can't pay cash then you shouldn't go, period, end of the story. I love these people who travel and live on credit.

I had a neighbor years back when I lived in VT. I lived in a modest starter home comunity. This neighbor lived large. They had 2 Mercedes, a boat, pool, etc. They dressed to impress everyday and traveled all over. My wife thought they were rich and used to say as much. I'd just snicker and say something doesn't add up. Well I was right. The wife tels us her husband had left her for another women. She also spills the beans that the guy is a con artist and moves around the country running up all kinds of debt. They hadn't paid the mortgage in 14 months either. I watched the repo guy take those cars. Not fun or pretty to see.

I aso grew up in a house of spenders. My parents have filed bankruptcy twice wanting me to bail them out. I don't know what you fellow board members can afford but I know society all too well. I also see how many bankruptcies get filed in this country each year. It is truly sad.

You're pretty good at the hostility thing and riding a very high horse. However, I would venture to guess that the vast majority of Americans in general, not just DVC members, don't pay cash for their "million dollar homes" and cars. In fact, smart investors recognize that sometimes leveraging debt is a very good mechanism to aquire assets, reduce tax burdens, etc.

My only point, and I will continue to try and make it, is that none of us can possibly know enough about the circumstances of others to pass value judgments over what others do. If someone uses a credit card to go to WDW who cares. If someone buys DVC on an installment loan who cares. Do any of us know how many DVC members declared bankruptcy as a result of buying DVC on credit? No.

 

[jcf]

Sorry, the point wasn't about what we all have or don't have. My point is being lost in my rant. My major point is that I feel Timeshares should be for those that can afford the luxury not those that can simply afford the payments each month.

ETA: I don't think the quote thing is working. I didn't quote myself and I've seen Casterli quoted when they were my quotes????????

Also my big thing is that this board seems to have the mentality that DVC is a necessity of life, it is not. I'm also not saying these board members are in bankruptcy, I don't know the firtst thing about everyones's finances.

What I do know is that when a poster states they have $20,000 and what should they do with it my answer will never be buy a Timeshare, never.

I'll bow out of this otherwise interesting topic.

While I have a deferred comp plan for retirement and pension with only debts being a mortgage and car lease (can't seem to get into used car thing yet).
I was hoping to see if anyone had a strategy, such as, where they could keep DVC for 15 years and sell and re-coup money based on higher point cost. What will AKV be per point at such a time or even BCV? That's all

 

[jodifla]

While I have a deferred comp plan for retirement and pension with only debts being a mortgage and car lease (can't seem to get into used car thing yet).
I was hoping to see if anyone had a strategy, such as, where they could keep DVC for 15 years and sell and re-coup money based on higher point cost. What will AKV be per point at such a time or even BCV? That's all

Well, it's hard to know. I bought 10 years ago, when points were in the 60 dollar range. I could sell it know most likely for at least what I paid, if not a bit more.

But this isn't something we planned on. We planned on using it for the duration. There are recent changes to WDW (ie, the terrible DDP and its effects on dining at Disney) that have me rethinking whether we'll keep our contract to the bitter end. Right now, we still enjoy our WDW vacations a great deal, so since we only have our dues, we are quite content.

Edited to add: Wow, the quote thing really is ALL messed up....assigning quotes to random people. Could be fun...and downright dangerous!

 

[bcpage]

What I do know is that when a poster states they have $20,000 and what should they do with it my answer will never be buy a Timeshare, never.

Some background....I have a million dollar home (free and clear), 529 college plan for the kids, defined benefit retirement plan--basically I am very well off, but I have this $20,000 that's just burning a hole in my pocket, should I buy DVC?

Just wondering, b/c this sounds an awful lot like your situation.

 

[crisi]

Some background....I have a million dollar home (free and clear), 529 college plan for the kids, defined benefit retirement plan--basically I am very well off, but I have this $20,000 that's just burning a hole in my pocket, should I buy DVC?

Just wondering, b/c this sounds an awful lot like your situation.

Maybe - do you go to Disney at least every other year? Do you want to stay on site? Do you stay in at least moderates when you go? Do you tend to use at least half midweek days? Are you uncomfortable with renting points (currently that is a better strict financial deal).

Dumbo's blunt, but he has a point. There are a lot of Americans that are stretched thin. There are lots that don't bother to save for retirement or their kids college. There are a lot of people wondering which credit card bill they should pay off this month. Lots that don't have defined benefit pensions (or have them with companies that they will be lucky to get $.30 on the dollar). Lots that have not terribly stable job situations in not terribly stable industries. We don't tend to ask those questions around here before we blankly tell people "my only regret is not buying sooner!" And implying that WDW memories are more important than financial stability. Frankly, anyone who thinks that is screwed up - and anyone who encourages someone else to spend money they don't have is being irresponsible - and far meaner than anything Dumbo has said. You don't need to pay their bankruptcy lawyer. We all have different definitions of financial stability - some of us (me) need a lot of it. Other people can live much closer to the edge and be happy (one of my girlfriends, I'd break out in hives if I lived at her level of savings) - but there is an edge.

 

[Starr W.]

Maybe - do you go to Disney at least every other year? Do you want to stay on site? Do you stay in at least moderates when you go? Do you tend to use at least half midweek days? Are you uncomfortable with renting points (currently that is a better strict financial deal).

Dumbo's blunt, but he has a point. There are a lot of Americans that are stretched thin. There are lots that don't bother to save for retirement or their kids college. There are a lot of people wondering which credit card bill they should pay off this month. Lots that don't have defined benefit pensions (or have them with companies that they will be lucky to get $.30 on the dollar). Lots that have not terribly stable job situations in not terribly stable industries. We don't tend to ask those questions around here before we blankly tell people "my only regret is not buying sooner!" And implying that WDW memories are more important than financial stability. Frankly, anyone who thinks that is screwed up - and anyone who encourages someone else to spend money they don't have is being irresponsible - and far meaner than anything Dumbo has said. You don't need to pay their bankruptcy lawyer. We all have different definitions of financial stability - some of us (me) need a lot of it. Other people can live much closer to the edge and be happy (one of my girlfriends, I'd break out in hives if I lived at her level of savings) - but there is an edge.

I live in an upper middle class neighborhood and we have had at least 4 houses go repo in the last 1.5 yrs. Job losses and spending beyond their means in all cases, though one was just a "soap opera/lifetime movie" case.
Don't know if anyone was a DVC member.