Core Insights - The article discusses the four worst investments according to Humphrey Yang, a personal finance content creator with a significant following on social media [2]. Group 1: Timeshares - Timeshares involve partial ownership of a vacation home, allowing usage for a specific time each year, but come with high costs and do not appreciate in value like real estate [3][4]. - Annual fees and expenses are associated with timeshares, and exiting a timeshare agreement can be challenging due to the complexity of the contracts [4]. Group 2: New Cars - Purchasing a new car is discouraged as it depreciates significantly, losing 10% to 20% of its value immediately after leaving the dealership, and can drop to 50% of its original price within three years [5][6]. - Cars should not be viewed as investments since it is nearly impossible to sell them for more than the original purchase price [6]. Group 3: Triple-Leveraged ETFs - Triple-leveraged ETFs aim to amplify market returns, potentially increasing gains or losses by three times the market movement, which can lead to significant risks during market volatility [7]. - These funds utilize derivatives and other high-risk strategies to achieve their leveraged returns, making them a risky investment choice [7].

Core Insights - Cars are generally depreciating assets, losing value from the moment of purchase, unlike stocks and other investments that appreciate over time [1] - A smart strategy for car purchases involves buying a used car and investing the difference, potentially earning thousands of dollars [2] Financial Analysis - The average price of a new car exceeds $48,000, while opting for a $10,000 used car can lead to significant savings that can accumulate over time [2] - Financing a new car results in a financial loss of approximately $31,000 over five years, considering the depreciation of the asset [5][7] - In contrast, purchasing a used car and investing the monthly payment can lead to a total of about $55,510 after five years, assuming an 8% average annual return [10] Investment Strategy - Instead of investing heavily in a depreciating asset, the strategy focuses on minimizing exposure to depreciation while maximizing investment growth [11] - The initial investment in a used car is lower, allowing for more capital to be allocated to investments that appreciate in value [11]

Core Insights - Buying a new car is a significant financial decision that requires careful planning and strategy to save money effectively Group 1: Budgeting - Establishing a comprehensive auto budget is essential, which should include not only the car's price but also additional costs like insurance, fuel, and maintenance [3][4] - It is recommended to budget $50 to $100 monthly, or $600 to $1,200 annually, for car maintenance and repairs [4] Group 2: Research - Conducting thorough research on makes and models, including prices, features, safety ratings, and owner reviews, is crucial before visiting a dealership [5] - Buyers should be prepared to walk away if the price does not meet their expectations [5] Group 3: Timing - Timing purchases strategically can lead to significant savings, particularly during periods when dealerships are clearing out inventory, such as the end of the month, holiday weekends, or year-end sales [6] - Approximately 60% of a dealership's inventory consists of vehicles that must be sold by the end of the year, making these times ideal for buyers [6] Group 4: Financing - Arranging financing prior to negotiating with dealerships is advisable, as it allows buyers to understand their loan terms and monthly payments upfront [8]

Core Insights - The One Big Beautiful Bill Act (OBBBA) introduces new tax benefits for car buyers, including a temporary tax deduction on car loan interest, which may influence purchasing decisions [3][4] - Personal finance expert Suze Orman warns against using these tax benefits as justification for unplanned car purchases, emphasizing the importance of financial prudence [2][7] Tax Changes Summary - The OBBBA allows a temporary tax deduction of up to $10,000 on car loan interest until 2028, with income phase-out thresholds set at $100,000 for individuals and $200,000 for joint filers [3] - The act also ends the federal tax credit of $7,500 for new electric vehicle purchases and the $1,000 credit for home EV charging station installations, with expiration dates of September 30, 2025, and June 30, 2026, respectively [4] Market Implications - The average cost of a new car exceeds $49,000, and potential tariffs may further increase prices, which could lead to a rush in purchases due to perceived tax benefits [6] - Orman cautions that tax breaks should not be the primary reason for making significant investments in new cars, advocating for a more measured approach to car buying [7][8]