DENNIS S from TX posted over 1 year ago:

I took my lunch to work every day, and didn’t try to impress with new clothes. Contributed to the company match while investing elsewhere. We retired debt free, it’s not difficult, just takes determination.

BARRY J from TX posted over 1 year ago:

#1 We live in a commercial world where buying a “lifestyle” NOW is widely promoted. Many of the companies and organizations promoting “financial capability” for a whole month need to walk the talk the rest of the year. A $1,500 iPhone? Really” A $1,000 Taylor Swift ticker? Really? #3 One of the big-ticket items on the train to “stessville” is tuition assistance. Colleges, the nice folks who promote their ability to provide “good paying” jobs for Medieval Literature graduates are driving the train to “stessville” while ensconced in a "tenured" income stream for life. #4 “Using debt strategically to invest in things like real estate or business opportunities with the expectation that the returns will outpace the cost of borrowing” has historical probabilities that document that these are much risker uses of debt than investing in the market. #5 Small business failure rates and the severity of the consequences of bankruptcy are much more severe. These debts will haunt you for a lifetime. #6 Using debt in market investments comes in a close second. EVERY organization that profits from investing in markets talks about “risk” but makes a very weak effort to explain “what” risk is. “Variation” is one statistical measure of risk. Cloonan’s “real risk” is the other extreme. #7 The issue here is the “CAPABILITY” to take “calculated” RISK. Even there, this promotion ignores the “CAPACITY” to take risk. Capacity comes from knowledge. Capability comes from character. #8 “Calculated” does not mean guessing. It means KNOWING HOW TO make and use known probabilities to estimate the degree of risk. #9 If you think your financial advisor cares about your losses, your capacity has a hole in it. They don’t. They are trained how to skate past any liabilities their “education” and “assistance” might create that reduce your capability to estimate probabilities and understand their consequence. #10 Risk is real. This PR campaign is just marketing. It is a good example of how the investment industry uses misdirection to assuage their responsibilities. #11 YOU are the main source of RISK in financial your life. #12 This promotional message is brought to you by your mother who says, "Don't be a putz. Do the math. That's how you got here."

CRAIG B from WI posted over 1 year ago:

I agree with Barry J. I could've purchased rental apartments after I sold my business but just left it in the markets with ETF's, MF's and a good dose of Berkshire-Hathaway (BRK-B). I know I could've made more in real estate but chose not to have my life hassled as it was when I was a small business owner and in my area, the risk from politicians meddling in the rental markets was very real. As long as our financial plan is reasonable (after doing the math!! :) ) then we need to be content. Any more than that and investing is more of a hobby and challenge than a financial plan solidly taking us into the future. Then again, "to each their own".

R W from PA posted over 1 year ago:

There is not one company that I own stock in that is debt free. Given that these companies all create wealth, it would seem debt, and the leverage it brings, contributes to creating wealth. If it's good for the companies I have stock in, why wouldn't it be good for me, too? What forms of leverage are available to me? The best example I can offer is my own home. If a bank is willing to finance up to 80% of its value for what is usually a single digit interest rate, that represents a release of capital to me where I can employ it at usually a double digit return, plus, I participate fully in the slow appreciation of my home. The added benefit is that the interest paid is tax deductible. I'm 78 years old and still have a mortgage...and I sleep very soundly. Another form of leverage is writing puts which allows me to participate in the capital gains of a stock without having to own the stock. Finally, your friendly broker may lend you money to buy stock by extending a margin loan to you. I use this kind of leverage sparingly, but it's nice to know it's available. Yeah, the interest rate is high, but the secret there is the rate is negotiable. It's also tax deductible.

RAY L from DE posted over 1 year ago:

My wife and I have been debt-free for 18 years and we have many friends, some as young as 45, who are also debt-free. Those living in La La Land will never get debt-free because their spending exceeds their income for too much of their lives. My wife calls them people with a champagne taste and a beer budget. People who live in the reality of their income, set written goals, and live off a written budget can be debt-free by their early 50's or sooner. Sadly, as we move to a cashless society many more will fall prey to the financial institutions, i.e. those with their names at the top of many of the tall buildings in the downtown areas of cities. I have provided budget counseling for singles and couples for 30 years and I always urged them to get debt-free. I would share the example of how much less savings they would need in retirement if they paid off a mortgage with a P&I payment of $2,000/month. If you assume a 5% withdrawal rate (more than this might result in you outliving your savings) you would need $480,000 in savings in order to cover your monthly mortgage payment [$480,000 X 0.05 = $24,000]. Of course, they could use savings to pay off their mortgage, but they might incur a large tax bill in doing so. Paying extra on a 6% mortgage is a guaranteed 6% return, or as my grandfather used to say, a bird in the hand is worth two in the bush. Ray L. from DE