Comments on: Bad Financial Advice: ‘10 Great Reasons to Carry a Big, Long Mortgage’

By: yogavirgin

yogavirgin — Thu, 28 Jan 2010 21:28:36 +0000

People like Edelman are promoting wealth building. You can pay off your mortgage and save money and you'll have “x” amount, but if you pay a lower amount, use the savings to build wealth, you'll have “4x.” Even if you want to argue that, and say you'll have “2x” you will always have more wealth if you keep your money liquid and are in control of how much it earns.

It's not about what “makes sense” to the average person. Do you bet on a football game based on the statistics of the players or the team?

Good luck. Be smart.

By: Greg Cowart

Greg Cowart — Tue, 20 Oct 2009 22:59:48 +0000

I don’t think you do understand it. Ric does not promote debt, one of the most important things he preaches is to pay off all high interest, non-deductible debt ASAP as part of his long term pan for total financial security. Which should be everyone’s #1 goal.

I’d much rather be totally financially secure but have a mortgage payment than be debt free and be broke. Any way you slice it when you apply Ric’s strategies to any historical averages the person with the right goal, being financially secure, comes out WAY ahead of the person that puts being debt free above all else.

By: Eden

Eden — Tue, 20 Jan 2009 18:52:04 +0000

Actually, I did read the whole article. Trust me, it wasn’t that difficult nor is very difficult to understand the point. It comes down to a decision to add risk to your life through debt or to eliminate the risk by eliminating the debt.

People like Edelman promote debt. Other people have discovered you can live life without debt. Obviously, I’m a fan of the no-debt side of things. If you’re comfortable with the risk, go ahead and keep the debt, but don’t try to hide the risk side of the equation.

By: Brian

Brian — Tue, 20 Jan 2009 18:30:05 +0000

Actually if you had watched the whole video or read the whole article, what he’s saying is this; get the larget loan you can AFFORD at a 15 year payment amount. Then instead of the 15, get a 30 year loan and take the difference in payment and invest it in whatever way you feel comfortable with. That way you are taking that money and making it work for you instead of just giving it to the bank. Your house is gaining equity whether you are making the larger payments on it or not. The only difference would be the recent market fluxuations, but at any other time in history prioperty has grown in value of an average of about 3% a year. If you are investing that extra money every month and have some sort of financial crysis, you have it available to you. If you are paying it to the bank, it’s gone and you don’t have it availble to you as a loan on your house since the majority of your payment goes to interest so it barely affects your equity for the first few years.

By: Carnival of Debt Reduction #111 ~ What’s Scarier Than Debt? | I've Paid For This Twice Already...

Mon, 29 Oct 2007 09:46:42 +0000

[...] Bad Financial Advice or a good idea: 10 Great Reasons to Carry a Big, Long Mortgage from Finance and Fat. A great deconstruction of some very iffy – and SCARY – advice. [...]