Buying a Plane

[WannabeWealthy]

All:

Yes, I know it's an expensive hobby.  It will cost a lot just to take care of, etc, etc..  but I'm doing it anyway before I die.  It was always my dream way back before I was 10yrs old.  I've been through a LOT in my life with finances with the divorce, etc.. This is my final destination before I die so...

The plane (glider) will cost upwards of $250k USD.  Brand new hand made motor self-launching glider with advanced avionics and will take a year to produce.  Here's how the money will be divided out.

1) 20k downpayment (non-refundable)
2) 25k final painting of the glider
3) 25k final assembly / after painting
4) 50k engine install and instrument 
5) Balance payment 30 days prior to shipping to US and registration

How to pay for this?

My plan is to pay as much as I can for the next 10yrs before I retire.  Here's how I'm going to do that:

1) I have a LOC in my Etrade account that is a percentage of my overall stock value.  Right now the LOC will loan me $267k @ 8.34%APR.

2) I plan on going to flight school this coming Feburary 2024.  I have the cash to pay for flight school (~$15k in my checking account).  It could cost more depending on my progression at the school.

3) I have a credit card that has $52k line of credit on it with a 1.5yrs promotion balance transfer of 0% with a 3% transaction fee.

I was going to charge all of my flight training on that card as well as get the $20k downpayment early next year to get the ball rolling on building the glider.  During this time, I'll use all my work money to pay down the debt.  2.) through 5) is going to come in waves next year where I'll need to come up with the money when those milestones have been reached.

My ultimate goal is to use whatever resources I can to avoid the LOC until it's absolutely necessary to put money on that LOC.  I'll try using other CCs etc.. to move the money around -- looking for opportunities with balance transfers, etc..   

Paying down on that loan is as simple as my bonus check I'll receive every year which is ~$17k after taxes as well as extra paychecks for the 2 months out of the year that is extra.

At the end of the 10yrs, I'll sell some of my stocks to pay off the balance in full never to have to worry about paying o it when in retirement.

Does this sound like a good plan?  Are there other ideas that I haven't considered?  

Thanks.

[NoNamePerson]

Nov 23, 2023 9:11:42 GMT -5 WannabeWealthy said:

All:

Yes, I know it's an expensive hobby.  It will cost a lot just to take care of, etc, etc..  but I'm doing it anyway before I die.  It was always my dream way back before I was 10yrs old.  I've been through a LOT in my life with finances with the divorce, etc.. This is my final destination before I die so...

The plane (glider) will cost upwards of $250k USD.  Brand new hand made motor self-launching glider with advanced avionics and will take a year to produce.  Here's how the money will be divided out.

1) 20k downpayment (non-refundable)
2) 25k final painting of the glider
3) 25k final assembly / after painting
4) 50k engine install and instrument 
5) Balance payment 30 days prior to shipping to US and registration

How to pay for this?

My plan is to pay as much as I can for the next 10yrs before I retire.  Here's how I'm going to do that:

1) I have a LOC in my Etrade account that is a percentage of my overall stock value.  Right now the LOC will loan me $267k @ 8.34%APR.

2) I plan on going to flight school this coming Feburary 2024.  I have the cash to pay for flight school (~$15k in my checking account).  It could cost more depending on my progression at the school.

3) I have a credit card that has $52k line of credit on it with a 1.5yrs promotion balance transfer of 0% with a 3% transaction fee.

I was going to charge all of my flight training on that card as well as get the $20k downpayment early next year to get the ball rolling on building the glider.  During this time, I'll use all my work money to pay down the debt.  2.) through 5) is going to come in waves next year where I'll need to come up with the money when those milestones have been reached.

My ultimate goal is to use whatever resources I can to avoid the LOC until it's absolutely necessary to put money on that LOC.  I'll try using other CCs etc.. to move the money around -- looking for opportunities with balance transfers, etc..   

Paying down on that loan is as simple as my bonus check I'll receive every year which is ~$17k after taxes as well as extra paychecks for the 2 months out of the year that is extra.

At the end of the 10yrs, I'll sell some of my stocks to pay off the balance in full never to have to worry about paying o it when in retirement.

Does this sound like a good plan?  Are there other ideas that I haven't considered?  

Thanks.

The bolded is the only thing that bothers me. But I am the jaded one. Can this be built in the US? I'm sure you have researched the company with a fine tooth comb and microscope. But I say go for it. Life's short. My bucket list keeps getting longer and my life span keeps getting shorter     

[WannabeWealthy]

Nov 23, 2023 9:21:26 GMT -5 NoNamePerson said:

The bolded is the only thing that bothers me. But I am the jaded one. Can this be built in the US? I'm sure you have researched the company with a fine tooth comb and microscope. But I say go for it. Life's short. My bucket list keeps getting longer and my life span keeps getting shorter     

I'm going through an official dealer here in the U.S.  Wings&Wheels.  They work with the manufacturer and all the paperwork to deliver the planes to the U.S.

And I agree with you.  Life is short and I'm more focused with having fun before I get too old as opposed to trying to save all my money after I retire only to die and people who inherit my money have a good time with life.

[jerseygirl]

Are you taking lessons now? Can you join a club that shares a glider?
Have fun but hoping you get experience before spending all that money.

[Opti]

Nov 23, 2023 9:23:15 GMT -5 WannabeWealthy said:

Nov 23, 2023 9:21:26 GMT -5 NoNamePerson said:

The bolded is the only thing that bothers me. But I am the jaded one. Can this be built in the US? I'm sure you have researched the company with a fine tooth comb and microscope. But I say go for it. Life's short. My bucket list keeps getting longer and my life span keeps getting shorter     

I'm going through an official dealer here in the U.S.  Wings&Wheels.  They work with the manufacturer and all the paperwork to deliver the planes to the U.S.

And I agree with you.  Life is short and I'm more focused with having fun before I get too old as opposed to trying to save all my money after I retire only to die and people who inherit my money have a good time with life.

I apologize for not reading your OP yet as I tapped out at, I want to buy a plane and the financial details. Since its a glider I will guess you already have your license(s) and are proficient in flying a glider?

I am jealous so I might not return to this thread in a while. I would love to even get to take flying lessons so buy a plane does not fully compute. But go for it. (I am a Car person who would definitely spend the money on a custom ordered car should the opportunity arise.)

[Opti]

OK, skimmed the OP. #2 going to flight school is I hope just to be a better glider pilot prior to taking delivery of the plane?

[minnesotapaintlady]

Why do you have to own one?  Can't you just start out by joining a club and leasing time?   My philosophy is never to finance toys, and that's a heck of an expensive toy.  You can buy an actual plane for less than that.

[WannabeWealthy]

Nov 23, 2023 9:36:26 GMT -5 jerseygirl said:

Are you taking lessons now? Can you join a club that shares a glider?
Have fun but hoping you get experience before spending all that money.

I've got 30hrs flying engine planes and a few hours flying gliders.  I'm going to flight school in Jan-Feb to get my license.  I plan on buying the glider after that.  It'll take a year to receive so I'm planning ahead.

[WannabeWealthy]

Nov 23, 2023 11:55:24 GMT -5 minnesotapaintlady said:

Why do you have to own one?  Can't you just start out by joining a club and leasing time?   My philosophy is never to finance toys, and that's a heck of an expensive toy.  You can buy an actual plane for less than that.

I am interested in buying because it will be hella expensive to fly every weekend for a tow with gas and rent to get a plane in the air for several hours.  I plan on doing this as my main hobby in retirement so I want to be economical by not having any loan on it and just driving to the airport and flying it.  It'll come with a trailer so I can park it in front of my house and not worry about hangar rent.

I haven't lost the value of the plane since planes don't lose value like cars so I can sell it for nearly what I put into it if I become ill or not able to fly anymore.

Used?  Nah.  I'd rather buy brand new for a plane so that I don't have any surprises when I'm flying.  And this plane is a 2023.  There are no versions of it pre-2023 so it's a brand new model/design.

[WannabeWealthy]

Nov 23, 2023 9:46:32 GMT -5 Opti said:

OK, skimmed the OP. #2 going to flight school is I hope just to be a better glider pilot prior to taking delivery of the plane?

Flight school is to become a glider pilot.  I don't have the license yet.

[minnesotapaintlady]

So, what happens to that brokerage LOC if your stocks tank?  I'm assuming they call in the loan?  Last year about this time you were saying you were broke so I'm guessing your stocks rebounded and you're feeling flush with money again?  It seems crazy risky to me to borrow that much against your retirement savings.  I'm not saying don't fly, I just know from having an aerospace obsessed son that camps out at OshKosh every summer that there's way cheaper ways to do it.  If you're set on ordering that plane, I'd just cash in the stocks now and pay cash for it.

[azucena]

$250,000 = how many rentals?

That's the equation I trot out when DH starts asking about buying a vacation home.

[Opti]

Nov 23, 2023 19:16:28 GMT -5 WannabeWealthy said:

Nov 23, 2023 9:46:32 GMT -5 Opti said:

OK, skimmed the OP. #2 going to flight school is I hope just to be a better glider pilot prior to taking delivery of the plane?

Flight school is to become a glider pilot.  I don't have the license yet.

I'm with MPL. Why are you getting so ahead of yourself here?

First step should be take lessons to become a glider pilot and decide if you even want to be a glider pilot. Do you have other flying certs? Small engine, Instrument only or whatever they call it these days?

[djAdvocate]

Nov 23, 2023 9:23:15 GMT -5 WannabeWealthy said:

Nov 23, 2023 9:21:26 GMT -5 NoNamePerson said:

The bolded is the only thing that bothers me. But I am the jaded one. Can this be built in the US? I'm sure you have researched the company with a fine tooth comb and microscope. But I say go for it. Life's short. My bucket list keeps getting longer and my life span keeps getting shorter     

I'm going through an official dealer here in the U.S.  Wings&Wheels.  They work with the manufacturer and all the paperwork to deliver the planes to the U.S.

And I agree with you.  Life is short and I'm more focused with having fun before I get too old as opposed to trying to save all my money after I retire only to die and people who inherit my money have a good time with life.

i know Wings and Wheels.  they are reputable.
i got my pilot's license about 15 years ago.
i let it lapse due to failing vision and a family disaster.
i won't be getting it back, i don't think, but i LOVED flying when i was a pilot.
my son is now interested in flying, and i am encouraging him.

i think you are going to end up north of $25k for training.  just LYK.  you won't have "prop time" for a glider, but you are going to need a bit of glide time.  and the rentals are not cheap.

flying probably sounds silly to a lot of people.  but i have never felt more free than when i was a pilot.  i recommend it to anyone that aspires to it.

as to your financial plan, it would be so much better to pay cash.
how old/young are you?

[WannabeWealthy]

Nov 23, 2023 21:10:27 GMT -5 djAdvocate said:

Nov 23, 2023 9:23:15 GMT -5 WannabeWealthy said:

I'm going through an official dealer here in the U.S.  Wings&Wheels.  They work with the manufacturer and all the paperwork to deliver the planes to the U.S.

And I agree with you.  Life is short and I'm more focused with having fun before I get too old as opposed to trying to save all my money after I retire only to die and people who inherit my money have a good time with life.

i know Wings and Wheels.  they are reputable.
i got my pilot's license about 15 years ago.
i let it lapse due to failing vision and a family disaster.
i won't be getting it back, i don't think, but i LOVED flying when i was a pilot.
my son is now interested in flying, and i am encouraging him.

i think you are going to end up north of $25k for training.  just LYK.  you won't have "prop time" for a glider, but you are going to need a bit of glide time.  and the rentals are not cheap.

flying probably sounds silly to a lot of people.  but i have never felt more free than when i was a pilot.  i recommend it to anyone that aspires to it.

as to your financial plan, it would be so much better to pay cash.
how old/young are you?

I'm 54yrs old (this January 3rd).  I've put off flying for far too long.  I'm absolutely going to go early next year.  I scored a 95% on my written test 2yrs ago and let the score lapse not going to flight school because of Covid.  I'm not going to make that mistake again.  I have to study yet again and do the written test again.

The urgency comes from several things:

The Czec Republic FAA has to make a decision on a few things for categorizing the glider and so has been held up for all residents of that country because of it.  There is a waiting list of over 50 people wanting that glider.  Since the U.S. doesn't abide by such rules, all US residents get pushed to the top of the list.  It normally would take years to build the glider but right now, it will only take 1 year.  I thought about putting money down on it and then waiting to get the plane built but if I decided not to buy the glider, I'd have to sell my share of the downpayment since there are no refunds.

Stocks can go down and that's one of my biggest fears.  I've got 2 stocks that make up over 90% of my holdings and their growth is rapid but very unstable.  I have almost all of what I lost last year but things are starting to go negative again.  If I pull that money out now, I make even bigger risks: 1) I've lost the entire potential of what these stocks can do in 10yrs as opposed to be holding them.  2) I have to pay enormous taxes on the stock for that one time lump.  That's the reason for doing the loan and paying off the plane with my own earnings and not my stocks.

I'd much rather pay the remaining balance towards the aircraft with a potential for double the amount of money I have in my stocks than to pay now and lose a huge potential amount of gains in the next 10yrs.

I don't know how long I will live.  I have several health issues that warrant being careful and like I said, I don't want to save this money for people who would enjoy it more after I pass away.  It would be horrible if I had a lot of money when I die and didn't have a chance to use it the way I wanted to enjoy the latter part of my life than to be nearly broke, dying and having done all that I set out to do in my life.

One last thing, while I don't have a glider pilot license, I have over 30hrs of flight training from me attempting to get a private license in the past.  I'm not totally new to flying and I've been on several glider flights.  They are the most enjoyable experiences I've had flying so I'm sure I'll continue with my training and not get cold feet.

[jerseygirl]

Yikes 2 stocks make up 20% of your portfolio
Very risky Guessing you enjoy risks like flying
Can’t you join a glider club while waiting for your own?

[WannabeWealthy]

Nov 24, 2023 7:51:04 GMT -5 jerseygirl said:

Yikes 2 stocks make up 20% of your portfolio
Very risky Guessing you enjoy risks like flying
Can’t you join a glider club while waiting for your own?

Yes, I can join a glider club.  The stocks weren't intentional.  I had more diversity but sold them off.  These are the two that are left.  If I sell to make them more diverse, I have to pay taxes. 

Why is flying a risk?

[NoNamePerson]

Nov 24, 2023 8:06:53 GMT -5 WannabeWealthy said:

Nov 24, 2023 7:51:04 GMT -5 jerseygirl said:

Yikes 2 stocks make up 20% of your portfolio
Very risky Guessing you enjoy risks like flying
Can’t you join a glider club while waiting for your own?

Yes, I can join a glider club.  The stocks weren't intentional.  I had more diversity but sold them off.  These are the two that are left.  If I sell to make them more diverse, I have to pay taxes. 

Why is flying a risk?

Heck just waking up in the morning is hazardous to your health.   

[WannabeWealthy]

I have decided a plan.

I will wait for buying the glider plane.

I just did some calculations for borrowing the money and I don't like it.  I'd rather pay for the plane in cash.

So, my plan is to wait until my stocks rise to a value of $650k.  That's over $250k more than what they are now.  If they fall, then I wait longer.  If they climb fast, then I buy the plane faster.  I do NOT want to pay over $200k in interests for this plane.  That's a complete waist of money.

So, 

1) Pay for the training with my own earnings (~$25k)
2) Wait on the stocks to reach $650k in value, then buy the plane.  

If the waiting list is 2-3yrs, so be it.  I'll just put all the money down at the point I have 650k so that if the stocks fall, I won't have to worry about not having the money.

[NoNamePerson]

This thread had me checking out plane gliding near me. NO not about buying. Found a place across the bay that offers rides. Shame on you for putting this on my bucket list.

[djAdvocate]

Nov 24, 2023 9:00:47 GMT -5 WannabeWealthy said:

I have decided a plan.

I will wait for buying the glider plane.

I just did some calculations for borrowing the money and I don't like it.  I'd rather pay for the plane in cash.

So, my plan is to wait until my stocks rise to a value of $650k.  That's over $250k more than what they are now.  If they fall, then I wait longer.  If they climb fast, then I buy the plane faster.  I do NOT want to pay over $200k in interests for this plane.  That's a complete waist of money.

So, 

1) Pay for the training with my own earnings (~$25k)
2) Wait on the stocks to reach $650k in value, then buy the plane.  

If the waiting list is 2-3yrs, so be it.  I'll just put all the money down at the point I have 650k so that if the stocks fall, I won't have to worry about not having the money.

this is a better angle.  cost of capital is high right now.
i think you are making a good decision.
however, i would also maybe take on a personal trainer and
getting your health issues in order.  it will improve your QOL,
and extend your horizon a bit.

[minnesotapaintlady]

Is there something you can do to better diversify your portfolio?  90% of your money in 2 stocks is so high risk.  Is it all in taxable accounts?  Maybe sell a little off every year?

[Opti]

Nov 24, 2023 9:09:09 GMT -5 NoNamePerson said:

This thread had me checking out plane gliding near me. NO not about buying. Found a place across the bay that offers rides. Shame on you for putting this on my bucket list.

There is a very small airport near me. Luckily I cannot walk there. I want to take a flying lesson in a baby plane or a helicopter. 

[Opti]

DJ PM me when you get a chance. I really would like to know about the flying. I do have eye issues, but I also have a good sense of my surroundings. It's what makes me a better than average amateur driver.



  *Trys to look cute and shiny

[NastyWoman]

Nov 24, 2023 9:09:09 GMT -5 NoNamePerson said:

This thread had me checking out plane gliding near me. NO not about buying. Found a place across the bay that offers rides. Shame on you for putting this on my bucket list.

You really should thank wannabewealthy for adding to your list.


Like you I have a long bucket list which, despite crossing off items from that list, just keeps on growing. And that is good! The one thing I really don't want is one day looking at an empty page with no more to do. That would be a "might as well die" point. So I want to die with a list of things that would make sticking around for very desirable. See life as a feast where you don't need to clean all the plates on the table.

[NoNamePerson]

Nov 25, 2023 16:21:15 GMT -5 NastyWoman said:

Nov 24, 2023 9:09:09 GMT -5 NoNamePerson said:

This thread had me checking out plane gliding near me. NO not about buying. Found a place across the bay that offers rides. Shame on you for putting this on my bucket list.

You really should thank wannabewealthy for adding to your list.


Like you I have a long bucket list which, despite crossing off items from that list, just keeps on growing. And that is good! The one thing I really don't want is one day looking at an empty page with no more to do. That would be a "might as well due" point. So I want to die with a list of things that would make sticking around for very desirable. See life as a feast where you don't need to clean all the plates on the table.

I add to my bucket list all the time. At 80 I still look ahead and not behind. No one will be standing at my grave saying “what a shame she did not get to do so and so” there will be lots of “geeze you remember the time she did so and so” and lots of laughing and my sons eyes will be rolling around in his head   I’m already checking into glider flying. Well not me as pilot but being taken on flight. And this from someone who does not particularly like flying. But going up in hot air balloon was awesome so figure gliding will be just as awesome.  

[Knee Deep in Water Chloe]

Aren't there groups you can co-own a plane with?

[Opti]

Nov 25, 2023 17:01:06 GMT -5 NoNamePerson said:

Nov 25, 2023 16:21:15 GMT -5 NastyWoman said:

You really should thank wannabewealthy for adding to your list.


Like you I have a long bucket list which, despite crossing off items from that list, just keeps on growing. And that is good! The one thing I really don't want is one day looking at an empty page with no more to do. That would be a "might as well due" point. So I want to die with a list of things that would make sticking around for very desirable. See life as a feast where you don't need to clean all the plates on the table.

I add to my bucket list all the time. At 80 I still look ahead and not behind. No one will be standing at my grave saying “what a shame she did not get to do so and so” there will be lots of “geeze you remember the time she did so and so” and lots of laughing and my sons eyes will be rolling around in his head   I’m already checking into glider flying. Well not me as pilot but being taken on flight. And this from someone who does not particularly like flying. But going up in hot air balloon was awesome so figure gliding will be just as awesome.  

There is an annual balloon festival in NJ near the Solberg airport. Conceptually I'd rather be in the glider than the hot air balloon but that's me. 

[NoNamePerson]

Nov 25, 2023 22:29:28 GMT -5 Opti said:

Nov 25, 2023 17:01:06 GMT -5 NoNamePerson said:

I add to my bucket list all the time. At 80 I still look ahead and not behind. No one will be standing at my grave saying “what a shame she did not get to do so and so” there will be lots of “geeze you remember the time she did so and so” and lots of laughing and my sons eyes will be rolling around in his head   I’m already checking into glider flying. Well not me as pilot but being taken on flight. And this from someone who does not particularly like flying. But going up in hot air balloon was awesome so figure gliding will be just as awesome.  

There is an annual balloon festival in NJ near the Solberg airport. Conceptually I'd rather be in the glider than the hot air balloon but that's me. 

The festival near me allows you to go up in a tethered balloon.  Friend and I went up and actually went a little way out over the Gulf of Mexico. Flight was over an hour Great experience. But tethered is a good safe way to experience it. 

[WannabeWealthy]

Nov 24, 2023 19:05:21 GMT -5 minnesotapaintlady said:

Is there something you can do to better diversify your portfolio?  90% of your money in 2 stocks is so high risk.  Is it all in taxable accounts?  Maybe sell a little off every year?

That is my plan.