Quote:
Originally posted by on-ramp
.you're not truly wealthy until you owe nothing.
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When you finally reach being wealthy, by oweing nothing you will realize that debt can be usefull....For instance you can buy a house in an apprecaiting housing market have a mortgage on it, take the money that would have been used to pay the house off and invest it at higher rate of return than you are paying on the loan and take a income tax deduction for the interest you are paying...This is using mney to it's highest and best use....an abstraction if you will on the use of money...by tieing up your principle by paying off your debt, you are not creating any cash flow...your money in a sense is DEAD....or in an apprecaiting housing market your rate of return must be adjusted downwards because of the amount of principle you have invested.
What is wrong with credit card debt if the interest rate your paying is 1.99% for the life of the loan? However I am making the assumption that you are using the money for something that HOLDS or INCREASES in value.
Best advice so far is to review your financial situation with regards to the money....According to your needs you can invest for short term, medium term or long term...each has it's own paticular set of parameters.
If you are of mind to yu can work the money...as suggested by buying collectables (cars) I would suggest there are alot of different areas of collecting that can be VERY profitable. Knowledge is the key, and you have to start the process somewhere. I have found ART to be the most lucrative.
For long term investment you need tax deferal to maximize your return... YOu also have the option to keep some money in reserve and invest the rest for long term...Remember tther is nothing like the compounding of interest over time and the earlier you start the better off you will be in the long run...