Luxury Items

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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Darrvao777
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Postby Darrvao777 » Sun Aug 24, 2014 3:38 pm

CarefulBuilder14 wrote:Your work contract may be guaranteed, but if you're injured your income might not be guaranteed, unless you have a ton of disability insurance.

Did your income only rise a lot recently? Or you've been paying down debt? What do you have in long-term savings? Are those savings in taxable accounts or tax-deferred accounts? Are they invested in cash-equivalents or potentially volatile securities? I'm having a little trouble understanding how you can make great money, spend very little, and yet not have more saved. Perhaps the long-term savings pool is really big and that's where it is.

If you have an investment portfolio around $200k or above that you can access without a lot of IRS penalties, then $30k on a ring might be reasonable. But it you'd have to take money out of a traditional IRA/401(k)/403(b) then $30k might just be too much.

Your answers may very well change my advice, but it sounds like you might be better spending a lot less on a ring. I'm assuming, but did not ask earlier, that you are a male buying an engagement ring for a female. (Social libertarian here, just don't want to get pronouns wrong). You can always get her something nicer on a later anniversary. Does she really want that particular ring, or is it more you wanting to get her something great?

Edit: As far as my last sentence, I was asking whether you had a huge amount in savings but tried to live off of your paycheck and make big purchases out of current-month disposable income. Someone who can get $30k of disposable income over the course of a month or two would usually have more in taxable savings if his everyday expenses were very low.


True, but I do have a large disability policy in place

My income just rose within the last 2 months. My long-term savings are in good shape and virtually everything in tax-deferred accounts with plans to contribute to taxable accounts once I get this pesky ring out of the way. The tax-deferred accounts are roughly split between cash equivalents and volatile securities. It is sadly nowhere near 200k and I don't want to access any of it for the ring

I have heard that advice a fair amount re: spending less on the ring so maybe I will actually heed it. I am a male buying an engagement ring for a female. She is incredibly laid back and doesn't care what kind of ring. As we have been dating for more than 5 years now though, she just wants to get married. It was my idea to spring for something a bit spiffier given my recent income spike

And finally, I gotcha. Yes that should be true for someone who can get 30k of income within a period of 2 months but like I mentioned, my income just rose recently.
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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Aug 24, 2014 3:59 pm

That new information definitely puts things into a clearer context. You're pretty well-protected in the case of a disaster, but I think the opportunity cost of $30k is a lot.

Do either of you own a home? Have you thought about getting a home, or is renting just a lot more practical? That money would be good as a down payment on a home or taking a big bite out of a mortgage.

Is she pretty stable in her job? Does she like her job, or has she ever talked about going into another field or starting a business? Cash would be a good cushion then.

I wouldn't put it into stocks or bonds or anything volatile. Keep it as highly liquid, accessible cash.

If you continue to make great money in the future, you can always get her nice stuff.

And the fact she is more interested in getting married than getting a fancy ring is a sign of a great choice! :)

Adore her with your time, love her, be wonderful to her - but there are better things you can do with $30k than buy a ring she's not really that into.
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flan
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Postby flan » Sun Aug 24, 2014 3:59 pm

Darrvao777 wrote:True, but I do have a large disability policy in place

My income just rose within the last 2 months. My long-term savings are in good shape and virtually everything in tax-deferred accounts with plans to contribute to taxable accounts once I get this pesky ring out of the way. The tax-deferred accounts are roughly split between cash equivalents and volatile securities. It is sadly nowhere near 200k and I don't want to access any of it for the ring

I have heard that advice a fair amount re: spending less on the ring so maybe I will actually heed it. I am a male buying an engagement ring for a female. She is incredibly laid back and doesn't care what kind of ring. As we have been dating for more than 5 years now though, she just wants to get married. It was my idea to spring for something a bit spiffier given my recent income spike

And finally, I gotcha. Yes that should be true for someone who can get 30k of income within a period of 2 months but like I mentioned, my income just rose recently.


If you want to spend the 30K on her, and she doesn't care about having a stupidly expensive bauble on her finger, don't spend 30K on a stupidly expensive bauble. Spend the money, if you must, on something she does care about -- a car, a downpayment on a house, a new kitchen, Ugandan orphans, whatever.

rockyrock
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Postby rockyrock » Mon Aug 25, 2014 8:59 am

Darrvao777 wrote:True, but I do have a large disability policy in place

My income just rose within the last 2 months. My long-term savings are in good shape and virtually everything in tax-deferred accounts with plans to contribute to taxable accounts once I get this pesky ring out of the way. The tax-deferred accounts are roughly split between cash equivalents and volatile securities. It is sadly nowhere near 200k and I don't want to access any of it for the ring

I have heard that advice a fair amount re: spending less on the ring so maybe I will actually heed it. I am a male buying an engagement ring for a female. She is incredibly laid back and doesn't care what kind of ring. As we have been dating for more than 5 years now though, she just wants to get married. It was my idea to spring for something a bit spiffier given my recent income spike

And finally, I gotcha. Yes that should be true for someone who can get 30k of income within a period of 2 months but like I mentioned, my income just rose recently.


I was in a similar situation when I bought my wife's ring. I had the cash or credit to do either and would have been fine either way. In the end I chose a compromise: I put half on my Platinum and financed the other half 0% for six months. In the end I lost out on about 10k points but was a little more easy not thinking about draining a huge portion of my liquid savings all at once.

Good luck, let us know what you do.
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Darrvao777
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Postby Darrvao777 » Mon Aug 25, 2014 9:12 am

Thanks for all the helpful advice guys

I'm backing away from the idea of a ring that expensive now but if I do decide to go through with it, I think I will go for a split as rockyrock mentioned. Will put about 10k down between my United and SPG card to get the spending bonuses (50000 MileagePlus miles + 25000 Starpoints) and then finance the rest at 0%

I understand it's 0% but it does make me uneasy and certainly seems like a slippery slope to unnecessarily financing things in the future. Plan to keep at least 30k in savings as my emergency fund and then rapidly pay off the ring with anything I have above 30K (so hopefully, 2 months or less. No prepayment penalty with Tiffany's either so that's good.)
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CarefulBuilder14
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Postby CarefulBuilder14 » Mon Aug 25, 2014 10:36 am

You can think it over for a little bit longer, depending on when she wants the ring for its symbolic value. I have a friend with a recent 70k-ish income but a really bad credit history (sub-550 FICO in the past). He is saving up money for a $15k-ish ring because he genuinely can't afford it right now. She's patient and knows he's going in the right direction, financially. But - and I'm not certain of this - I think she feels like the engagement isn't really official until she gets a ring.

I'd save her from the awkward situation of her friends asking "Wow! Congrats! Can I see the ring?....He hasn't gotten you one yet? Oh..."

The best way to purchase an expensive ring may not be the important thing here. What might really matter is the prompt appearance of a ring.

So maybe get a $15k or $20k ring and finance it at 0%, but get it soon? You know her better than any of us do, but I just want to be sure you've considered the possibility she may want a ring ASAP. We're talking about a few MR points vs. a potentially annoyed future wife.
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Darrvao777
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Postby Darrvao777 » Mon Aug 25, 2014 10:44 am

CarefulBuilder14 wrote:You can think it over for a little bit longer, depending on when she wants the ring for its symbolic value. I have a friend with a recent 70k-ish income but a really bad credit history (sub-550 FICO in the past). He is saving up money for a $15k-ish ring because he genuinely can't afford it right now. She's patient and knows he's going in the right direction, financially. But - and I'm not certain of this - I think she feels like the engagement isn't really official until she gets a ring.

I'd save her from the awkward situation of her friends asking "Wow! Congrats! Can I see the ring?....He hasn't gotten you one yet? Oh..."

The best way to purchase an expensive ring may not be the important thing here. What might really matter is the prompt appearance of a ring.

So maybe get a $15k or $20k ring and finance it at 0%, but get it soon? You know her better than any of us do, but I just want to be sure you've considered the possibility she may want a ring ASAP. We're talking about a few MR points vs. a potentially annoyed future wife.


Oh no I agree, she doesn't care what kind of ring but she does want the ring sooner rather than later. Will probably take the plunge within the next 4 weeks :)
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Damien2014
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Postby Damien2014 » Sat Sep 06, 2014 9:08 am

beachcomber suite jumeirah beach in dubai for 7 days. about 8000usd.
I think that is the largest purchase i ever made with my Amex platinum.

Omarperez48
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Postby Omarperez48 » Fri Oct 10, 2014 1:18 pm

Well my biggest purchases it was in one day and not one transaction in luxury items. Was at Burberry and Louis Vuitton a total of 8k. But I do spend a lot on the monthly basis on relatively luxury-considered items. I just got a paintball gun for $1500 and so on.

Now as I read more and more on people that have the Amex Cards I see what people use their card for.

After seeing Darrvao's post about a $30k ring. What would be a good price range for a ring. We have been together for almost 6 years now. I'm only 24 years old but I do okay for myself make a bit over $140k a year they say 3mos salary is good for a ring but after really thinking it thru I think a $30k+ anything is too much if its not a car or a house. That being said $20k ring max would be good for a woman to have right? big enough to show it off but not big enough to have her hand shopped off. Or what do you guys think.
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Vattené
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Postby Vattené » Fri Oct 10, 2014 1:33 pm

Well "they" do always say 3 months' salary, but what's important is not going over what you're comfortable spending. You make quite a bit of money so $20K probably won't put too much of a strain on you and it will get a high quality, impressive ring by anyone's reasonable standards. Hopefully she isn't the type that expects you to drop a lot more on one ;)
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