On 11/21/2017 3:29 PM, John H wrote:
On Tue, 21 Nov 2017 11:50:40 -0500, wrote:

On Tue, 21 Nov 2017 11:14:18 -0500, John H
wrote:

On Tue, 21 Nov 2017 09:13:27 -0500, wrote:

On Mon, 20 Nov 2017 22:15:21 -0500, wrote:

On Mon, 20 Nov 2017 19:12:12 -0500, Alex wrote:



Too many people spend every dime they make, don't take advantage of
401K's, and wonder how they are going to retire on SS alone.

I also wonder how anyone over 50 or so with a mortgage and car
payments ever expects to retire. I paid cash for my house here in 84
and I paid off my mortgage on the condo in 1990. I haven't had a car
payment since the Nixon administration. In spite of all of that I
sound like a pauper when I hear how much money you guys make.


===

Smart borrowing, i.e., borrowing to buy an appreciating asset is good
business when you can earn a higher return than your after tax
interest cost. Even if you can afford to pay cash, borrowing makes
sense if you can invest your cash at a higher return.

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My Dutch friend's grandson gets government student loans, at zero percent interest, and promptly
puts the money in an interest earning account. The interest rate may change next year, but right now
Dutch college students are getting a pretty good deal.

===

That's a perfect example of smart borrowing as long as the funds are
invested safely, the interest rate is guaranteed and the loan can be
repaid without penalty. Everyone's situation and tolerance for risk
is different however.

I'm surprised the government lets them get away with it, but more power to him. He's working part
time to pay for his college which is why he can do it. Industrious young guy.



That's an interesting system. If I recall correctly government student
loans or government backed student loans in the USA are paid to the
college/university who then disperses the funds per semester or other
schedule they may have.