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Anyone Purchase An Extended Service Contract?

Old Aug 9, 2007 | 09:27 AM
  #21  
Costner's Avatar
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Default RE: Anyone Purchase An Extended Service Contract?

ORIGINAL: ppgoal

Costner, I like the way you reason through things and lay out the financial alternatives. It mirrors my own thinking.

Here's my question: I've owned a pile of GE stock for 20 years and it did great until 2000, and then dropped and did not move. It is just starting to move now. Should I stay with it or move it into bonds which have less risk and should generate 4-5% ROI?
GE is a solid investment - I would hang onto it. They are so diversified that they are able to act like a mutual fund instead of a stock, and you will be hard pressed to find a company that pays dividends like they do. I think often times people look at the performance without factoring in the dividends - because with that GE that is a large part of your return (I'd assume you have divident reinvestment). In any case in mid 04 they were below 30/share and now they are hovering just above 40/share.....a 25% return in three years isn't bad. They are just one of those stocks that is slow and steady, but if you already have a well balanced portfolio.....you can't go from with GE.

If you really must get out of it, I surely wouldn't look towards bonds unless you are 65 or older. There area lot of good index funds out there that would return a much higher rate than bonds, or you could look into something like a Vanguard Energy Fund (VGENX). I've held that fund for probably around 8 or 10 years now and their five year average annual return has been over 30%. Needless to say I'm very happy.
 
Old Aug 9, 2007 | 09:29 AM
  #22  
Costner's Avatar
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Default RE: Anyone Purchase An Extended Service Contract?

Costner - thank you for input on the subject. You have backed up my decision not to buy a warranty. Your line of reasoning and financial logic makes good sense.
Just promise me if anything happens and you are stuck with a $3700 repair bill that you don't curse my name in vain!
 
Old Aug 9, 2007 | 09:52 AM
  #23  
Blade69's Avatar
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Default RE: Anyone Purchase An Extended Service Contract?

Ok. Here's what I think I'm going to do. Take it to a shop and have them give it a good once over. See if I can get the same type of once over for it that they use to make it a Certified Audi and if they were paying for the warranty. Not sure how much that will cost, but I think it is a good start. If nothing major comes up, I won't get the warranty. I'll just make sure I keep with the maintenance. As it is now, I think it will pass any inspection.....except for that little clunk in the front end when I go over speed bumps or certain humps in the road at speed. So we'll see.
 
Old Aug 9, 2007 | 08:10 PM
  #24  
jj2345's Avatar
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Joined: Apr 2007
Posts: 240
From: Bronx ny
Default RE: Anyone Purchase An Extended Service Contract?

im going with the aa waranty afer i do my timmingbeltservicesince they wont cover that unless it breaks
i got 90000 miles so im due for that,each time i drive that car i cross my fingers hoping it doesnt break on me
 
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