Quote:
Originally Posted by ColdNoMore2
Some of the the largest corporations in the world disagree with you.
Very few of them don't have some type of debt.
They simply made the calculation that their debt service is less, than what they will benefit from when using that same money elsewhere.
If you're paying off a bond that is at say 5%, but you can make your money work in other places for you at 7%, then you are losing out....and that really isn't being very fiscally astute.  |
I agree with the Corporate America statements........leveraging debt works.
After adding in the Admin Fee, the effective rate on my bond was in excess of 7%. My investment return would have to be in excess of 10% (less taxes), to breakeven. So a guaranteed return of 10% (by paying off the debt), I decided to pay it off.
Every situation is different, every logic is different. Good luck to all on the chosen path.