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littleroc02us
Moderator
Cash: $ 205.35
Posts: 1015
Joined: 09 Feb 2009
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quote:
Originally posted by keshavmish
Assuming all things are equal, over the next 25 years (remember he now lost 5 years of savings by repaying the loan in 1/2 of the time), this individual can now retire on $53,065 per year or retire roughly 5 years earlier with the original $40,000 per year requirement.
Things cannot be equal for both individuals because one has more risk then the other. The one who is in debt has more risk because if the individual has a health problem or god forbid loses their job he would have more problems because his money is tied up in investments and if the market is down at the same time he may not have much left. The one who has all of their debt paid off would be in a better position financially if tragedy strikes. So remember that risk needs to be calculated.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
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Wed Sep 07, 2011 5:45 pm |
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Kenny Soward
New Member
Cash: $ 1.40
Posts: 7
Joined: 09 Sep 2011
Location: Cincinnati, OH
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I think if you are managing your debt successfully, then you can afford to put some away and get some baby goodies. But many times debt becomes unmanageable and then you become a slave to it.
If you let it get out of control then you have no choice but to deal with it. I would definitely keep an eye on it.
Good Luck!
Kenny Soward, author of The Budget of Your Life; Breaking the Chains of Debt
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Fri Sep 09, 2011 2:17 am |
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