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TDU and public opinion of unionism.
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<blockquote data-quote="Bagels" data-source="post: 1188168" data-attributes="member: 43436"><p>To put a spin on a classic joke: a women walks into a psychology's office and tells him her needs are being met; he tells her "get new needs." A struggling single mom working two jobs pays David Ramsey for advice. He advises her to get a third job. Same concept.</p><p></p><p>Nor does Mr. ramsey's advice constitute a financial Bible. He's a sales person, often selling unrealistic advice (e.g. "normal" 12% market returns) and often leads his customers toward high-commissioned sales persons/organization not always acting in their best interests. Plus there's alternative views to being debt-free. In fact, some people make a lot of money off of their debt.</p><p>- Classic example: In 2008, my credit card offered me two-years 0% interest & no transaction fees on checks written against it. So I wrote one out for the entire balance ($32K), deposited it into a two-year CD at an inflated interest rate during the banking crisis, and earned well over $5,000 in interest. Completely free money earned against a high debt level.</p><p>- Since Ramsey believes so strongly in the market, why doesn't he promote mortgaging (& continued equity loans / re-fi) the entire value of your home & investing it into the markets, since the returns (per him) will be three times the interest rate you're paying? And in high-cost housing markets, historically returns off of renting & investing the difference (between ownership) have demonstrated that home ownership doesn't always make financial sense.</p><p>- There's still a cost to driving a 10-year-old fully paid for car. Scheduled maintenance costs increase, and parts begin to fail & need replacement. Consider an end-of-season sale on an entry level Chevy Malibu for just over $17K right now (with the UPS discount). Including sales tax & 2% (market rate) financing, that's less than $18K-$19K out-the-door (before tax benefit), depending on the location. In three years it's projected you'll earn $14K from a private sale for that car. Depending on your ability to perform maintenance and repair (assuming you keep the car road worthy) and local insurance/registration rates, the three-year cost of the new car may be lower than that of the 10yo car. It just entails a <u>paper </u>debt load.</p><p></p><p>I'm sorry you had to turn to Dave Ramsey to do your thinking for you, but alas, whatever makes you feel better.</p></blockquote><p></p>
[QUOTE="Bagels, post: 1188168, member: 43436"] To put a spin on a classic joke: a women walks into a psychology's office and tells him her needs are being met; he tells her "get new needs." A struggling single mom working two jobs pays David Ramsey for advice. He advises her to get a third job. Same concept. Nor does Mr. ramsey's advice constitute a financial Bible. He's a sales person, often selling unrealistic advice (e.g. "normal" 12% market returns) and often leads his customers toward high-commissioned sales persons/organization not always acting in their best interests. Plus there's alternative views to being debt-free. In fact, some people make a lot of money off of their debt. - Classic example: In 2008, my credit card offered me two-years 0% interest & no transaction fees on checks written against it. So I wrote one out for the entire balance ($32K), deposited it into a two-year CD at an inflated interest rate during the banking crisis, and earned well over $5,000 in interest. Completely free money earned against a high debt level. - Since Ramsey believes so strongly in the market, why doesn't he promote mortgaging (& continued equity loans / re-fi) the entire value of your home & investing it into the markets, since the returns (per him) will be three times the interest rate you're paying? And in high-cost housing markets, historically returns off of renting & investing the difference (between ownership) have demonstrated that home ownership doesn't always make financial sense. - There's still a cost to driving a 10-year-old fully paid for car. Scheduled maintenance costs increase, and parts begin to fail & need replacement. Consider an end-of-season sale on an entry level Chevy Malibu for just over $17K right now (with the UPS discount). Including sales tax & 2% (market rate) financing, that's less than $18K-$19K out-the-door (before tax benefit), depending on the location. In three years it's projected you'll earn $14K from a private sale for that car. Depending on your ability to perform maintenance and repair (assuming you keep the car road worthy) and local insurance/registration rates, the three-year cost of the new car may be lower than that of the 10yo car. It just entails a [U]paper [/U]debt load. I'm sorry you had to turn to Dave Ramsey to do your thinking for you, but alas, whatever makes you feel better. [/QUOTE]
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