Posted by rayrick on January 27, 1999 at 09:22:27:
I understand there’s a certain psychological lift that comes with being totally debt free, but I just don’t see the logic in paying off a mortgage that you’re paying under 9% interest on when you could be investing it in a tax free retirement vehicle at a higher rate of return. Compound interest is a beautiful thing, and tax free compound interest is even better. Every year counts when it comes to retirement investing. Waiting 5-7 years so that you can have no mortgage payments is NOT a good idea in my opinion.
Has anyone ever used the “Debt-Free & Prosperous Living” course by, John Cummuta? The course says, that people can become totally debt-free on their current incomes w/in 5-7 yrs., and this includes a home mortgage as well. Any feedback would be greatly appreciated.
Re: Debt-Free & Prosperous Living… - Posted by Sandy E.
Posted by Sandy E. on January 27, 1999 at 21:14:33:
Yes, I have the tapes. They changes my life. I recommend doing the plan. I have even taught friends the program. It works. Just remember, real estate investment debt is not personal debt as Cummuta talks about. Listen to the tapes and DO IT!
While it is certainly a good idea to live free of “bad” debt – debt incurred to buy depreciating assets, like clothes and cars, it doesn’t seem to be such a good idea to get rid of all debt.
Using debt to invest in appreciating assets – stocks, real estate, etc. is almost essential to becoming wealthy. Donald Trump, Warren Buffett, and almost any other wealthy American used debt, or other people’s money, to build their fortunes.
Besides, your home may appreciate at 5% per year (if you’re lucky). Instead of paying off the mortgage, put the extra money in a stock fund, and you’re looking at 10% per year. Put it in income real estate, and the returns get bigger…
Re: Debt-Free & Prosperous Living… - Posted by Marvin Seawood
Posted by Marvin Seawood on January 27, 1999 at 01:17:26:
Anyone who has the financial discipline
to pay their mortgage in five to eight
years (which isn’t as difficult as it
sounds), can achieve better results by
not paying off their mortgage early.
Re: Debt-Free & Prosperous Living… - Posted by Dean (IL)
Posted by Dean (IL) on January 26, 1999 at 16:35:21:
Yes!! I ordered this course from him about a year ago. I don’t know how feasible his process is. The idea is to not save ANYTHING (either long term, or short term, 401k, investments, etc.) until you’ve paid off all debt. Then after you’ve done this (it will take approx 5-9 years depending on your debts) using his process, THEN you take that monthly cashflow that you have grown accustomed to not spending over that period, to begin investing in mutual funds.
I don’t know how feasible his system his. I suppose it would work if you don’t experience any financial emergencies/difficulties over those years (and if you do, don’t use your credit to get out of them or you’re back to where you started).
I ended up returning his course under the 60 day money back guarantee.