Quote:
Originally Posted by 8sPOT
I don't think there is good debt. There is bad debt and then less bad debt. I get that debt is utilized to grow a business or invest for the future. However, I am saying that having $100,000 capital readily available for these investments is better than paying someone to borrow for however long.
I understand that you can borrow at 4%, then invest at 9%. Some would say that is good debt, but now you have diminished your 9% return to 5%. Wouldn't it be better to not borrow and invest at 9%?
Of course the assumption here is that the capital is available, which it usually isn't. I just don't think there is good debt. To me, 'good debt' is like saying 'fun murder'. It just doesn't make sense in my head.
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SO how much are you losing not having that $100k earning you money? its not free to have money sit and do nothing
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