The value of debt in building wealth : creating your glide path to a healthy financial L.I.F.E. /
"The book of financial wisdom that your future self will thank you for reading For many adults under 40, "debt" is a four-letter word--something that should be avoided but is all too often unavoidable. In The Value of Debt in Building Wealth, bestselling author Thomas J. Anderson enco...
| Main Author: | |
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| Format: | eBook |
| Language: | English |
| Published: |
Hoboken :
Wiley,
2017.
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| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
Table of Contents:
- Cover; Title Page; Copyright; Contents; Foreword; Acknowledgments; About the Author; About Supernova Companies; Introduction; Endnotes; Chapter 1: The Traditional Glide Path; In a Perfect World, No Debt! But Our World Isn't Perfect; You Owe a Debt to Your Future Self; Break the Paycheck-to-Paycheck Cycle; Companies Embrace Balance; The Power of Savings; A New Glide Path: Debt Adds Value; Finding Your Glide Path; The Need for Specific, Actionable Advice; Endnotes; Chapter 2: Foundational Facts; All Debt Is Not Equal: Oppressive, Working, and Enriching Debt.
- Paying Down Debt Gives You a Return Equal to Your After-Tax Cost of That DebtSh*t Happens-Value Liquidity; Yes, You Can-Save; Compounding Matters-For the Upside and the Downside; Compounding Lessons and Hard Knocks; The Past Is the Past; Focus on the Future; Behavioral Economics Matters; Endnotes; Chapter 3: A Balanced Path to L.I.F.E.; Phase 1: Launch!; A Case Study; Application; Frequently Asked Questions; Phase 2: Independence; Scenario 1: You Do Not Own a House; Scenario 2: You Would Like to Purchase a House; A Case Study of Dual Income, No Kids; Application.
- Scenario 3: You Already Own a HouseEndnotes; Chapter 4: Freedom and Equilibrium; Phase 3: Freedom; A Case Study; Application; Frequently Asked Questions; Phase 4: Equilibrium; Application; Bonus Phase: No Debt!; Endnotes; Chapter 5: The Other Side of the Balance Sheet; The Probability of an 8 Percent Rate of Return Is Zero; Risk, Return, and Diversification; What about Interest Rates and Cost of Debt?; What about One of Your Biggest Assets? Your House; Three Buckets of Money; Conservative; Core; Aggressive; Risk Matters-The Risk of Time; Factoring Leverage into Returns.
- Debt as an Integrated Part of Your Investment PhilosophyEndnotes; Chapter 6: Proof of the Value of Debt; The Big Picture-Debt Can Be Valuable; Zero Oppressive Debt Is Valuable; Is Debt Valuable if It Costs Nothing?; What about Borrowing Costs?; What about Investment Returns?; What about the Impact of Savings Rate?; What about the Tax Factor?; What if the Tax Deductibility of Mortgages Goes Away?; Children and College Savings; Interest Rates and Debt Service Coverage Ratios; Endnotes; Chapter 7: Conclusion; Taking a Stand Against Conventional Wisdom; Endnotes; Appendix A: Phi Phound Me.
- Inspiration ArrivedNot Perfect Makes Perfect; Applying the Fibonacci Sequence; From 13 to 8; From 8 to 5; Super Cool Math; Endnotes; Appendix B: Understanding the Power of Securities-Based Lending; Case Study; The Power of Securities-Based Lending; First Bank of Mom and Dad; Endnotes; Appendix C: Home Purchase and Financing Considerations; Don't Rush to Buy a House; When Home Ownership Can Go Wrong; Save Yourself the Anguish; Be Careful!; All Mortgages Are Not Created Equal; One-Month LIBOR Interest-Only Floating Rate ARM; 5-, 7-, 10-Year Interest-Only ARM; 15- and 30-Year Fixed Rate.