Posted by Hope (Fl) on March 05, 2001 at 10:49:53:
Ben, I really dont think there is any correct answer. Alot depends on your age and circumstances and what type of risk you feel comfortable with. My father-in-law sounds very much like yours. He has always bought everything cash, both in his business and personal life. I remember years ago when his one son started to invest heavily in real estate and was trying to get his father to take a mortg. on his house and buy 10 more homes. My father-in-law’s response was why do I want 10 more homes; I have everything I want and need now,it is all paid for and I can sleep at night. I thought he was pretty foolish at the time, but years later my brother in law who was very highly leveraged in N.J. real estate came down real hard in the late 80’s early 90’s when the market dropped and dropped.
So I guess what I am saying is what do you want with your life? Do you want a million, two , three or twenty? My father in law was content to know he owned what he had, that nobody could take it away from him. As I get older, I can understand this point of view more. I used to want to own everything (leveraged to the hilt) now that no longer appeals to me. I just want to own my home, have decent income coming in and be able to sleep at night. I no longer believe that money will make me happy, or should I say that more money will make me happier. Their is lots of work invloved when you own lots of stuff(at least that is my experience) and you can go through years of hard times when you are very leveraged. Just look at the stock market now. Many of those leveraged dot com millionaires will end up with nothing. Sorry to ramble on so much, but basically just wanted to say there is no right or wrong answer, but I would prefer to be in your father in laws shoes, not yours.