Is This A Sound Decision ?

[ANTSS2001]

Intro might be long but forgive me for I am still shaking here it goes....

Ok I have done a a major decision with my eyes close this morning... well it really started Monday. Ready for the story.. here it goes.... I always take $20 of my weekly paycheck since I don't know when. There are times that I may forget and oh well.. but when I have change I drop it in my shoe box. If my grandmother know of this I would have been disowned. She believes that money should not place anything near your feet stuff so ssshhhh... So finally I was cleaning and decided to stop and open the box. The box have not been opened ( taped it with duct tape ) and so I sat there and was staring at the box thinking should I or should I not. it must be just change in there so I should just save it for a rainy day! Well I really would like to try WL even on the slow season ( if you notice it is on my ticker already) and I found a deal with travelocity ( yes CathrynRose am not waiting for "thee code") That if I book a flight and hotel for 3 nites in January they take off a $100. So I checked the prices and a roundtrip ticket ( flight alone would be $350 for none stop USair ) and a 3 nites stay with WL would coast me $700, and if you book it you get a $200 voucher for a next trip good till 12/07 which is perfect for the Jan. 24 to 28 ( this trip would cost with travelocity a $700 if I would take my sister with me at Pop minus the $200.00. Mind you this includes airfare granted it does not come with tickets but we still have unused hopper tickets which will be good for a couple of weeks.). So to sum it up I would only have to spend $1200.00 for both trips in January. Ok going back to the box! Sorry had to explain why I did this and I guess I am justifying it to myself too I finally cut through the tape and counted the $20 bills I saved. ready ? In I don't know how long ( I have been in my present address for 5 years now so this box is about 6 to 7 years old) I have $5087.56 I had to take a moment to breath. I said I can go to WL w/o worrying about codes or anyhing ( this is the not so practical in me talking) just call book and go! So I boil a pot of tea and made tea and some biscuits. And senses starts twirling if I just get up and go then it would be just for now maybe I should look inot something tangeble for this money ( i know it is not alot but it is for me ) And guess what I got in my mail as soon as I opend my door ? A DVC Video so I popped it in ( it is the same one you see at the resort but more in depth explaination). To make my very long story a bit shorter. I called the number on the video, asked every single, silly, crazy stupid question I have and tomorrow we are going to finalize everything. It is not alot of points but it is something I can hold onto for the next 40 years. I will have to use the $5000.00 as down they are waiving the closing fee of $500.00 and I can spread the $600.00 dues in 12 months. If they are going to finance it, it will come to $173.00 a month for some ungodly lenght, but there is no penalty if you put more into it. After the down I would have the $10,000.00 minus the $1200.00 (that amount supposedly to pay Travelocity) in financing with the credit union for 3 years. Just like buying a new car. Now after I have written this down. I really hope I made the right decision! What do you think.

 

[Sammie]

The only decision I would disagree is, next time you are going to save $5000 put it somewhere it will earn interest.

 

[ANTSS2001]

 

[LMCT88]

WOW!!!! That must have been some surprised. I would definitely use the money for something you want. (I may have to try your idea, see how much I could save in a year). I am so Happy for you. It's great when you find surprises like that it makes me So Happy For You!!!!!!!!!!!!! Have A Great Trip!!!!!!!!!!!!!!!!

 

[doubletrouble_vb]

Sounds brilliant to me other than the shoebox part. Pretty much how I came to own.

 

[DisDaydreamer]

if you love Disney and have some plan to fund your retirement, then I am happy for you. I want you to look ahead and figure out how you will live in between vacations though.


Good luck and happy vactions to you.

 

[Beca]

The only thing I might suggest, since you sound like someone who does not like to "finance" things (hence the substantial nest egg you have), is to look and see if you could get a resale of about 50 pts. You could buy it "free and clear", and dues would only be about $200 per year.

My mom owns a small contract (VWL), but she frequently uses it a BWV. She has 50 pts, and can stay in a standard studio at BWV for 5 nights at certain seasons for 45 pts. She loves her contract, and would not want anymore.

I'm not saying DON'T get more points...but, you can always add-on via DVC later if you want to, and smaller contracts retain their value better.

Just a thought....

Enjoy your DVC...whatever you decide!!

 

[loucrew]

Don't worry what others think. Enjoy it, you earned it

 

[mickeyfan2]

The only thing I might suggest, since you sound like someone who does not like to "finance" things (hence the substantial nest egg you have),

Where was this stated in the OP?

 

[dumbo71]

The only thing I might suggest, since you sound like someone who does not like to "finance" things (hence the substantial nest egg you have), is to look and see if you could get a resale of about 50 pts. You could buy it "free and clear", and dues would only be about $200 per year. /QUOTE]


I agree with this. Financing DVC is not something I can suggest. Beca is right you could always add on later. If you finance, that $20 a wekk you are "socking" away may have to end. If you pay cash for the points you can afford you may find out it is enough for you. If not that $20 per week you are "socking" away will add up son enough and you'll be able to add on.

I also agree with Sammie, put that money in the bank to earn interest. Have it taken directly from your check if you like to make it easy and automatic.

Good luck and at the least enjoy your trip, you've earned it.

 

[conciergekelly]

I say enjoy it! You onlly live once! Now instead of one trip you can go every year for 49(?) years. Oh and....Welcome Home

 

[cdmickey]

The only real question is whether you were going to purchase DVC anyhow; if so, then enjoy your windfall, if not, then maybe you shouldn't have.

 

[calypso*a*go-go]

Hello again! (We met by the pool during your recent trip to POP)

Please tell me that you got the promo price of $86 per point, because if you didn't...you need to call your guide back. You didn't say how many points you were purchasing, but if you bought the 150 pt. minimum, your figures look like you are paying the regular rate of $101 per pt. PM me if you need a referral for the Friends/Family promo.

As for the decision to buy, I think it was a great one considering how often you go to WDW!

 

[lovinthemouse]

I think life was meant to be enjoyed. If you can afford DVC, then go for it. Who cares what others would or would not do. This is your life and only you can decide what is right for it. That being said, buying into DVC was the best purchase I have ever made next to my home. It will bring my family joy for a great number of years. Good Luck!!

 

[jakenjess]

Congratulations and enjoy your DVC! You deserve it!

 

[isyt]

WOW!!!! Go forth and enjoy!!!!

 

[Mtnman44]

My father has a saying he got somewhere that he always guotes to me:

"Those that understand interest, earn it. Those that don't, pay it"

You have missed the opportunity to earn it, and now your're gonna pay it!

Just kidding. I'm a "payer" also.

First Question: On top of your monthly loan payment and the maint fees payments, ARE you planning on a Disney vacation each year or a long one every other year? If not, think about this very carefully.

Second, there's no way I or any other stranger can speculate on your financing decisions but it does look like you are paying a hefty interest rate on that $10,000. I'm guessing somewhere around 9 to 10% based on what you've said. I guessed the term at 10 years. Not sure what you have available to you but I would certainly look at the credit union or even personal loans or Credit Card Loans. I have Cards that will do 3.9% for the life of the balance. You have to be careful with the fine print on some of these offers however. This would enable you to either have lower payments or pay it off sooner at the same payment amount.

Congrats on your suprise windfall! P.S. Start putting your extra paycheck money in a money market account, or even a Roth IRA or something.

For example: Starting with zero, $20 a week for 7 years at 5% compounded quarterly would = $8758
10 years = 13,550
20 years = 35,823

Now, your savings habits appear excellent, we should all learn from your example. Imagine this retirement scenario. 35 years of investing $20 a week at a 9 % average return. (historical stock market is 12% overall) would yield this:
$253,557

Now, look at this ( I know this is pushing reality, but just for fun). If you keep your $5,000 and you take your maint fees and loan payment on the DVC contract and instead put them into your savings investment each month:

In 35 years you would have 762,599 just from this activity.

I am NOT advocating that you should do this instead. Afterall, DVC isn't about earning money, it's about having fun vacations during all those years. It's just suprising sometimes to think about how compounding interest works.

 

[Beca]

Where was this stated in the OP?

It wasn't, nor did I state that it was. That is why I said, "You SOUND like someone who does not like to finance". I inferred that from two of the OP's statements:

1) I have known many people who "sock" money away...they all tend to VERY frugal people who do not take money matters lightly, and they ALL hate financing. My mom was one of these people....actually, most of my relatives are. Since the OP went into GREAT detail about how he/she was trying to find the best "bargain" to go to WDW, I figured she was just as frugal & disciplined.

2) He she said they would be paying $173 per month for an "Ungodly length" of time. To me, that doesn't sound like someone who is comfortable financing DVC over the long haul. I know many people come to these boards and do not realize you can get a resale for fewer points for MUCH less money. It would've KILLED any of my friends/relatives who stash money to have committed to financing a vacation for a long period of time. I think my mom would've had a second stroke if she had thought about doing this.

I'm not saying the OP SHOULD do this....I am just throwing out other options. If you disagree...that's your opinion.

 

[ANTSS2001]

Thank you all for your inputs. I am taking all this to heart.
- Mtnman44 I am printing that thread! I think it is a very beneficial insight.
- Thank You! As off 9:30PM I am a DVC owner.
- I also started another box, But will make sure to check it atleast evry 2 months so I can deposit it somewhere where it will yield interest Mntman44. I should just do away with the box but it was a habit that would be very hard to break. I always like to think I have candy money
- calypso-go-go, yes I got the $86/ point
- I went to credit union early on today and was able to get a 5.5% in 4 years. And if I keep up with my part time job and arts and craft sale and cake sales I know can get this down to 2-3 years

-everybody who are DVC owners seems to be very please about their decision. I do go to the World 2-3 times a year. I grew up tagging along with my parents everytime they move whcih is my excuse that I dont need to go places anymore. Maybe one day I would like to go back to China (DL in Hong Kong )

-again thank you for all your inputs and don't think I took all your susggestions lightly. It made me think and asked all the pertinent question in landing this decision.

- I am trully home

 

[calypso*a*go-go]