I'm an accountant, and this is simply BS. It's been well defined for centuries. Assets = Liabilities + Owners Equity. You can have an asset AND a corresponding liability of the same amount, and is in fact exactly the case when one "purchases" for $0 down.
As to the return of not having debt, there's also a cost, whether it means having less to spend on something else, or you bought less than you probably could. My original point, if poorly made is that not having any debt is not much better than having too much debt, especially if you're operating a business. As with everything, all things in moderation including your finances. On Mon, Jan 12, 2009 at 6:19 PM, Roger Wright <[email protected]> wrote: > It's not a true asset if you still owe money on it. > > > > You also have to consider the "return " of not having any debt. True, it's > not always tangible but there's nothing like having that pressure off your > shoulders. > > > > > > > > Roger Wright > > Network Administrator > > Evatone, Inc. > > 727.572.7076 x388 > > _____ > > > > *From:* Ken Schaefer [mailto:[email protected]] > *Sent:* Monday, January 12, 2009 5:50 PM > *To:* NT System Admin Issues > *Subject:* RE: Would this be good for IT, or what? (UNCLASSIFIED) > > > > Why don't you take the money that you'd otherwise sink into your mortgage > and buy some other asset that will yield you a better return? > > > > Would you put your money in a bank that gave you 1% if you could put it > into a bank that gave you 2%? Sure you'll get a return from the first bank, > but you're forgoing a (opportunity cost) 1% additional return by not > investing in the second. > > > > If putting money into your mortgage is the best investment – then do it. > But it seems that in your country, the government is giving other > investments a tax break by making it more expensive for you to pay out your > mortgage... > > > > Cheers > > Ken > > > > *From:* Ben Schorr [mailto:[email protected]] > *Sent:* Tuesday, 13 January 2009 6:30 AM > *To:* NT System Admin Issues > *Subject:* RE: Would this be good for IT, or what? (UNCLASSIFIED) > > > > But that tax deduction on your mortgage interest is only partial. I mean > you can deduct the interest, yes, but that deduction is only at your tax > rate – 33% or whatever. So you're going to pay a bank $12,000 a year (or > whatever) to keep from paying the government $4,000? That doesn't seem like > a good plan to me. J > > > > I'd rather pay off the mortgage and not have that debt at all. > > > > Ben M. Schorr > Chief Executive Officer > ______________________________________________ > *Roland Schorr & Tower > *www.rolandschorr.com > [email protected] > > > > *From:* David Mazzaccaro [mailto:[email protected]] > *Sent:* Monday, January 12, 2009 9:28 AM > > *To:* NT System Admin Issues > *Subject:* RE: Would this be good for IT, or what? (UNCLASSIFIED) > > > > Some debt is good debt. > > For taxes, you do get to deduct the interest on your mortgage...if you pay > off your house, you lose that deduction. > > Additionally, you now have hundreds of thousands of dollars sitting idle in > your house that you can do nothing with (until you sell it). > > > > > > > ------------------------------ > > *From:* Webster [mailto:[email protected]] > *Sent:* Monday, January 12, 2009 1:59 PM > *To:* NT System Admin Issues > *Subject:* RE: Would this be good for IT, or what? (UNCLASSIFIED) > > Yes. But we moved to TN back in August and have a mortgage again. L I am > working on paying it off as fast as possible. > > > > > > Webster > > > > *From:* Jacob [mailto:[email protected]] > *Subject:* RE: Would this be good for IT, or what? (UNCLASSIFIED) > > > > Wow.. did that include the mortgage? > > > > *From:* Webster [mailto:[email protected]] > *Subject:* RE: Would this be good for IT, or what? (UNCLASSIFIED) > > > > +6 for Dave Ramsey. Paid off $197,000 in debt in 4.5 yrs. > > > > > > Webster > > > > *From:* David Lum [mailto:[email protected]] > *Subject:* RE: Would this be good for IT, or what? (UNCLASSIFIED) > > > > +1 times ten! > > > > We'll spend thousands sending out kids to college but never teach them the > basics of money and not using credit for anything but a house. My parents > didn't teach me that, it took me over 40 years (until Feb of last year) to > really "get it" (thank you Dave Ramsey). Funny the things we think we *need* > to have. Pretty sure 99% of these items our ancestors got along just fine > without. > > > > Veering nearer to back on topic, adding the need for several thousand IT > jobs can't be a bad thing, but I am interested in hearing from IT guys in > the healthcare industry what obstacles need to be overcome. It's one thing > to say "digitize healthcare records", another entire to pull it off - there > must be dozens of little "gotcha's". > > *David Lum** **// *SYSTEMS ENGINEER > NORTHWEST EVALUATION ASSOCIATION > (Desk) 971.222.1025 *// *(Cell) 503.267.9764 > > > > > > > > > > > > > > > > > > > > > > > > > > > > > ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~
