Comments for Paul McGuire's Blog http://dollarsnsenseblog.wordpress.com Pursuing excellence in personal finance, health and wellness, and personal and professional growth Thu, 19 Mar 2009 02:42:11 +0000 http://wordpress.com/ hourly 1 Comment on Analysis Paralysis! by John MacIntyre http://dollarsnsenseblog.wordpress.com/2008/10/28/analysis-paralysis/#comment-62 John MacIntyre Thu, 19 Mar 2009 02:42:11 +0000 http://dollarsnsenseblog.wordpress.com/?p=87#comment-62 I just wrote something similar with regards to programming. One distinction I'd like to add is that if you find yourself with tie, then give yourself a time limit (1-5min) to just pick one ... any one, and don't look back. Regards, John I just wrote something similar with regards to programming. One distinction I’d like to add is that if you find yourself with tie, then give yourself a time limit (1-5min) to just pick one … any one, and don’t look back.

Regards,
John

]]> Comment on Pay it Forward by Schevus http://dollarsnsenseblog.wordpress.com/2008/12/16/pay-it-forward/#comment-42 Schevus Wed, 17 Dec 2008 14:17:20 +0000 http://dollarsnsenseblog.wordpress.com/2008/12/16/pay-it-forward/#comment-42 Great post! I think we need to share this call to action with everyone. I speak a lot about this idea on my blog and with everyone I know, so I hope that I am spreading the idea as well. - Schev Great post! I think we need to share this call to action with everyone. I speak a lot about this idea on my blog and with everyone I know, so I hope that I am spreading the idea as well.

- Schev

]]> Comment on Why worry? by kevintouhey http://dollarsnsenseblog.wordpress.com/2008/11/04/why-worry/#comment-40 kevintouhey Sun, 09 Nov 2008 21:34:19 +0000 http://dollarsnsenseblog.wordpress.com/?p=89#comment-40 I wholeheartedly agree, stress and pessimism surround us everywhere. I find that the best way to escape them is to never lose sight of what is most important (family and health). On the same token, I think if we always try our best and develop a genuine belief that the light at the end of the tunnel, will be visible sooner than later, life becomes so much less stressful. I wholeheartedly agree, stress and pessimism surround us everywhere. I find that the best way to escape them is to never lose sight of what is most important (family and health). On the same token, I think if we always try our best and develop a genuine belief that the light at the end of the tunnel, will be visible sooner than later, life becomes so much less stressful.

]]> Comment on What’s so bad about debt consolidation? by Paul McGuire http://dollarsnsenseblog.wordpress.com/2008/03/24/whats-so-bad-about-debt-consolidation/#comment-29 Paul McGuire Sat, 31 May 2008 17:13:09 +0000 http://dollarsnsenseblog.wordpress.com/?p=8#comment-29 Yes, we're closer to agreeing than it seems from our comments. I don't claim to be sophisticated with money, I just know what has worked for me and many others. I would guess that, given the same investment vehicles, that we could work up a hypothetical plan your way and my way and be within arm's distance at the end of the term. Plus, there is a power to focusing on debt elimination, or any other goal for that manner, and attacking it with sheer intensity, and you can't put a monetary value on that. Nor can you quantify the peace of mind that comes from knowing you don't owe anyone a dime. I'm not sure what number you have in mind when you say real wealth. I'm trying to help people get into a position to build wealth. And that was my point all along. Folks claim to use debt consolidation as a tool, but I would guess that more than half of those don't change the habits and get themselves back into debt even further. Then what have they accomplished? Lenders don't sell debt as a tool to help you - they sell it as a tool to make money. I enjoyed the exchange with you. Enjoy your weekend! Yes, we’re closer to agreeing than it seems from our comments. I don’t claim to be sophisticated with money, I just know what has worked for me and many others. I would guess that, given the same investment vehicles, that we could work up a hypothetical plan your way and my way and be within arm’s distance at the end of the term. Plus, there is a power to focusing on debt elimination, or any other goal for that manner, and attacking it with sheer intensity, and you can’t put a monetary value on that. Nor can you quantify the peace of mind that comes from knowing you don’t owe anyone a dime. I’m not sure what number you have in mind when you say real wealth. I’m trying to help people get into a position to build wealth. And that was my point all along. Folks claim to use debt consolidation as a tool, but I would guess that more than half of those don’t change the habits and get themselves back into debt even further. Then what have they accomplished? Lenders don’t sell debt as a tool to help you – they sell it as a tool to make money.
I enjoyed the exchange with you. Enjoy your weekend!

]]> Comment on What’s so bad about debt consolidation? by shaferfinancial http://dollarsnsenseblog.wordpress.com/2008/03/24/whats-so-bad-about-debt-consolidation/#comment-28 shaferfinancial Sat, 31 May 2008 15:55:00 +0000 http://dollarsnsenseblog.wordpress.com/?p=8#comment-28 My last post on your site. Even though I leverage my real estate I use that leverage to invest in other types of real estate, stocks, etc. Indeed it is by leveraging that real estate that I now have more than enough investments, sans real estate, to wipe out my debt in a key stroke. See, if you invest your money instead of spending it (I'm sure you agree with this) it doesn't take long if you are not speculating, but investing (the difference is a long and unecessary post), to be able to do what I can. To take this the full circle, your call for not adding additional mortgages to pay off credit cards or purchase consumer items is great and I fully agree. It's just I haven't seen anyone who has accumulated real wealth without using some type of debt/leverage to accomplish it. Certainly, the middle class has not saved enough to get a comfortable retirement by following your advice. And that is where I will end this. My last post on your site. Even though I leverage my real estate I use that leverage to invest in other types of real estate, stocks, etc. Indeed it is by leveraging that real estate that I now have more than enough investments, sans real estate, to wipe out my debt in a key stroke. See, if you invest your money instead of spending it (I’m sure you agree with this) it doesn’t take long if you are not speculating, but investing (the difference is a long and unecessary post), to be able to do what I can. To take this the full circle, your call for not adding additional mortgages to pay off credit cards or purchase consumer items is great and I fully agree.
It’s just I haven’t seen anyone who has accumulated real wealth without using some type of debt/leverage to accomplish it. Certainly, the middle class has not saved enough to get a comfortable retirement by following your advice. And that is where I will end this.

]]> Comment on What’s so bad about debt consolidation? by Paul McGuire http://dollarsnsenseblog.wordpress.com/2008/03/24/whats-so-bad-about-debt-consolidation/#comment-27 Paul McGuire Sat, 31 May 2008 04:54:07 +0000 http://dollarsnsenseblog.wordpress.com/?p=8#comment-27 I'll certainly not try to sway your opinion. But I will clear the air. You make an assumption that I have a fear of debt. I simply have no use for it, and by not having any it isn't a problem for me either. I've been completely debt free (home included) for 2.5 years, and I'm getting by and growing my net worth just fine. A true calculation of net worth is assets minus liabilities, period. Debt is a liability, and by having no debt then my net worth calculation is simple - net worth = assets. I'm glad to hear your fortunes have turned around with your positive net worth... well, most folks that I see have a positive net worth as well because of the value of their home, but they're still up to their eyeballs in debt payments that they can't manage. And, a lot of this is brought on by a HELOC or second mortgage that they took out because they didn't have a down payment or thought it was a good idea to consolidate their debt onto their home. Why? Because they've bought the lie that it makes sense to buy as much house as the mortgage company will loan them money for. And now they can't sell their homes to "wipe out all" of their debt with a keystroke because of a slowed real estate economy. That's not leverage - that's stupid. I don't know where all of your assets lie, but it sounds as if you're heavily leveraged in real estate. If so, then I would be surprised to see a keystroke wipe out all of your debt; real estate simply doesn't trade as quickly as a stock or mutual fund. Best of luck to you as well. It is the ability to freely disagree that makes this a worthy medium for discussion. However, on this blog site, my way will be the right way. Have a great day. I’ll certainly not try to sway your opinion. But I will clear the air.

You make an assumption that I have a fear of debt. I simply have no use for it, and by not having any it isn’t a problem for me either. I’ve been completely debt free (home included) for 2.5 years, and I’m getting by and growing my net worth just fine. A true calculation of net worth is assets minus liabilities, period. Debt is a liability, and by having no debt then my net worth calculation is simple – net worth = assets. I’m glad to hear your fortunes have turned around with your positive net worth… well, most folks that I see have a positive net worth as well because of the value of their home, but they’re still up to their eyeballs in debt payments that they can’t manage. And, a lot of this is brought on by a HELOC or second mortgage that they took out because they didn’t have a down payment or thought it was a good idea to consolidate their debt onto their home. Why? Because they’ve bought the lie that it makes sense to buy as much house as the mortgage company will loan them money for. And now they can’t sell their homes to “wipe out all” of their debt with a keystroke because of a slowed real estate economy. That’s not leverage – that’s stupid. I don’t know where all of your assets lie, but it sounds as if you’re heavily leveraged in real estate. If so, then I would be surprised to see a keystroke wipe out all of your debt; real estate simply doesn’t trade as quickly as a stock or mutual fund.

Best of luck to you as well. It is the ability to freely disagree that makes this a worthy medium for discussion. However, on this blog site, my way will be the right way. Have a great day.

]]> Comment on What’s so bad about debt consolidation? by shaferfinancial http://dollarsnsenseblog.wordpress.com/2008/03/24/whats-so-bad-about-debt-consolidation/#comment-26 shaferfinancial Sat, 31 May 2008 02:44:05 +0000 http://dollarsnsenseblog.wordpress.com/?p=8#comment-26 Yes, we will disagree. Your fear comes through loud and clear and I'm afraid you trade on that fear. Debt on assets is called leverage and it is the only way wealth has been created. But I don't think you worry about creating wealth. You see I could wipe out all my debt with a keystroke because I have a positive net worth. Meanwhile, I leverage my real estate assets (yes I own more than 1 piece of real estate) and invest in opportunities as they come by me. You think this is risky, I think without leverage their is a great risk I won't create enough wealth to retire comfortably. No debt management is not "an EXCUSE to....have things that one cannot afford outright," but a way to leverage an asset so wealth can be created. You see not everyone has misused debt, not even close. 99% of folks with good credit do not get foreclosed. And when you look at wealth created by the middle class, most of it is created by home ownership with the help of a mortgage (leverage). No doubt if you have a problem with debt you are better off conquering that problem. But to fear debt as you do IMHO is counter productive. Good Luck! Yes, we will disagree. Your fear comes through loud and clear and I’m afraid you trade on that fear. Debt on assets is called leverage and it is the only way wealth has been created. But I don’t think you worry about creating wealth. You see I could wipe out all my debt with a keystroke because I have a positive net worth. Meanwhile, I leverage my real estate assets (yes I own more than 1 piece of real estate) and invest in opportunities as they come by me. You think this is risky, I think without leverage their is a great risk I won’t create enough wealth to retire comfortably.
No debt management is not “an EXCUSE to….have things that one cannot afford outright,” but a way to leverage an asset so wealth can be created.
You see not everyone has misused debt, not even close. 99% of folks with good credit do not get foreclosed.
And when you look at wealth created by the middle class, most of it is created by home ownership with the help of a mortgage (leverage).
No doubt if you have a problem with debt you are better off conquering that problem. But to fear debt as you do IMHO is counter productive.
Good Luck!

]]> Comment on What’s so bad about debt consolidation? by Paul McGuire http://dollarsnsenseblog.wordpress.com/2008/03/24/whats-so-bad-about-debt-consolidation/#comment-25 Paul McGuire Thu, 29 May 2008 03:02:52 +0000 http://dollarsnsenseblog.wordpress.com/?p=8#comment-25 I appreciate the comment. We'll have to agree to disagree. I do understand what a HELOC is, although probably not to your sophisticated level. It is an amount of credit taken against your house that can be accessed for whatever purpose you deem necessary. I mentioned that the HELOC will inevitably go higher, and it will, just maybe not now - prime simply will not remain this low. Your premise is that there is good debt and bad debt, and in my mind the only good debt is paid-off debt. You also assume that everyone has pristeen credit, and that it will remain so for the life of the HELOC. Debt management is simply an excuse to remain in debt in order to have things that one cannot afford to purchase outright. And no, I do understand the risks involved here. As long as you have debt, then you have risk. Risk associated with the loss of a job, a medical event, or some other unforeseen calamity. Risk that I eliminate by not having any debt. You see, as long as you have a HELOC, then someone has a claim against your home in the form of a lien. And, as long as that lien remains in place, then someone can foreclose on my home if one of these calamities hit and I can't pay the bill. I'm simply not willing to say it's OK to manage bad habits by moving the debt to your home and wiping the slate clean. It simply doesn't make sense. And yes, I am 100% debt free and carry no credit cards. As unsophisticated as that may be, my financial risk due to debt is currently zero. I appreciate the comment. We’ll have to agree to disagree. I do understand what a HELOC is, although probably not to your sophisticated level. It is an amount of credit taken against your house that can be accessed for whatever purpose you deem necessary. I mentioned that the HELOC will inevitably go higher, and it will, just maybe not now – prime simply will not remain this low. Your premise is that there is good debt and bad debt, and in my mind the only good debt is paid-off debt. You also assume that everyone has pristeen credit, and that it will remain so for the life of the HELOC. Debt management is simply an excuse to remain in debt in order to have things that one cannot afford to purchase outright. And no, I do understand the risks involved here. As long as you have debt, then you have risk. Risk associated with the loss of a job, a medical event, or some other unforeseen calamity. Risk that I eliminate by not having any debt. You see, as long as you have a HELOC, then someone has a claim against your home in the form of a lien. And, as long as that lien remains in place, then someone can foreclose on my home if one of these calamities hit and I can’t pay the bill. I’m simply not willing to say it’s OK to manage bad habits by moving the debt to your home and wiping the slate clean. It simply doesn’t make sense. And yes, I am 100% debt free and carry no credit cards. As unsophisticated as that may be, my financial risk due to debt is currently zero.

]]> Comment on What’s so bad about debt consolidation? by shaferfinancial http://dollarsnsenseblog.wordpress.com/2008/03/24/whats-so-bad-about-debt-consolidation/#comment-24 shaferfinancial Wed, 28 May 2008 13:19:34 +0000 http://dollarsnsenseblog.wordpress.com/?p=8#comment-24 Although I agree with your sentiments on paying off credit card debt with any mortgage instrument, you demonstrate little understanding of HELOC's. HELOC's are generally tied to the prime rate. There is rarely a introductory period of lower interest rate. It varies as prime moves up and down. Currently, those that are in a HELOC have seen there rate go down by 2.5% in the last year. Historically, prime has gone as high as 9.5% in the last 15 years, but averages less than 8%. I have a HELOC that I use for debt management and investment opportunities (I know you think this is risky, but you misunderstand all the risks in my opinion) at prime -1%. Currently I pay 4% on that loan. Pretty good in my book, especially when you add in the tax benefit. Even if you continue to be debt adverse you should give an accurate picture of how HELOC's work, before you dismiss them out of hand. Although I agree with your sentiments on paying off credit card debt with any mortgage instrument, you demonstrate little understanding of HELOC’s. HELOC’s are generally tied to the prime rate. There is rarely a introductory period of lower interest rate. It varies as prime moves up and down. Currently, those that are in a HELOC have seen there rate go down by 2.5% in the last year. Historically, prime has gone as high as 9.5% in the last 15 years, but averages less than 8%. I have a HELOC that I use for debt management and investment opportunities (I know you think this is risky, but you misunderstand all the risks in my opinion) at prime -1%. Currently I pay 4% on that loan. Pretty good in my book, especially when you add in the tax benefit. Even if you continue to be debt adverse you should give an accurate picture of how HELOC’s work, before you dismiss them out of hand.

]]> Comment on Spending while in debt – bad idea by BDO http://dollarsnsenseblog.wordpress.com/2008/05/26/spending-while-in-debt/#comment-23 BDO Wed, 28 May 2008 00:52:59 +0000 http://dollarsnsenseblog.wordpress.com/?p=29#comment-23 Good concepts! Good message! God Bless! http://www.beatingdebt.wordpress.com Good concepts! Good message!

God Bless!

http://www.beatingdebt.wordpress.com

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