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There was definitely a disconnect between the title and the content - it seemed to be about reinvesting your cash flow rather than leveraging debt. It would’ve
by harles 5y ago
There was definitely a disconnect between the title and the content - it seemed to be about reinvesting your cash flow rather than leveraging debt. It would’ve been nice to see a comparison with simpler investments like stocks as well.
As an anecdote of actually using debt to generate future cash, when I purchased a house my mortgage was bundled with a home equity line of credit that was used for the down payment. My plan was to pay this off as soon as possible since it had a higher interest rate than the base mortgage. All the advice I got told me not to - everyone said take the 10 years they offer of paying interest only and reinvest what you would’ve put in. It turned out to be great advice and any time I can make this trade on debt, I will.
- Spooky23 5y agoThat’s good advice in this rate environment — if your income stream is secure. When it’s not, you’re screwed. I have a relative who was a exec with a credit card bank. Great job, etc. Then the bank moved off to South Dakota, and didn’t pack him.
- PaulDavisThe1st 5y agoSam purchases the beach house using debt.