Tom explains why it’s important to eliminate Oppressive Debt, debt with interest rates higher than 10 percent. He also believes it is important to begin investing right away.
Anderson adds a caveat: Although debt is an effective way for the rich to pay for things, it’s inadvisable for mass-affluent consumers to take out lines of credit to buy the dream houses, dream weddings, dream kitchens and dream vacations Rachleff mentions in his blog post until they can truly afford them.
Tom speaks with financial services veteran Bob Brooks on the Prudent Money podcast about debt has the potential to add value for individuals.
Too many people live check-to-check, and too many small business owners and freelancers slam money into their retirement accounts and they can’t weather the next storm. That’s what I’m trying to avoid more than anything.
I think it’s the best financial book I could be reading right now. Here’s a one-sentence summary of The Value of Debt in Building Wealth: Put your money where it has the most value.
Readers likely to gain the most from The Value of Debt in Building Wealth are 25 to 40-year-olds with enough working years ahead to make significant savings toward retirement. Advisors might suggest the book as a source for clients interested in leveraging good debt and escaping destructive debt.
Even doing something like using an inheritance to pay off an entire student loan debt can be a risk, says Tom Anderson, founder of Supernova Companies LLC, a Chicago-based financial technology company that serves financial advisors.
Anderson pointed specifically to young adults’ lack of knowledge about investing. If you don’t take advantage of investing opportunities when you’re younger, for example, you’ll miss out on the power of compounding interest.
Think of debt as your Uncle Bill. We should learn to love Uncle Bill. He has some great qualities. With the right amount of time, we’d want him around more. To help you get there, let’s address some of the greatest myths about debt and see why the alternative might be worth thinking about.
Tom talks to Bloomberg Radio hosts Carol Massar and Cory Johnson about the need to balance retirement savings with liquidity.
So that’s a smaller-scale version of what Anderson and Fertitta are advocating we do, financially: embrace debt, use it to our advantage, and hang on to as much of our own liquid cash as possible.
Liquidity, the ability to access your money when you absolutely need it, is a key concept for Anderson. A thousand dollars in the bank is more useful than $1,000 tied up in a retirement account that charges a penalty for withdrawals—or in collectible figurines.
The larger point Anderson is making here, and the point of the “save less for retirement” headline, is that we’re putting too much of our income towards debt repayment and non-liquid savings/investment vehicles.
As part of the WGN Midday News weekly “Your Money Matters” segment, Tom Anderson talks to anchor Sean Lewis about why people should get comfortable with cash.
Moolala host and personal finance expert Bruce Sellery talks to Tom about how to build wealth and how individuals can better strategize about managing their debt.
Tom Anderson talks to MoneyLife host Chuck Jaffe about the impact of implementing a debt strategy in a rising interest rate environment.
Tom breaks down life into four financial stages and gives his recommendations for the amount of debt a person should have at each stage.
Anderson’s new book, The Value of Debt in Building Wealth, postulates that consumers should not look at debt as a burden but should rather embrace and accept it as a means of buying assets and reducing their tax bills.
Tom Anderson shares his insight into the ideas that shaped his new book, The Value of Debt in Building Wealth.
Imagine releasing a book called “The Value of Debt in Building Wealth” when U.S. stock markets are at all time highs and U.S. bond markets are near all time highs. Must be a sign of the top of the market.
Tom Anderson, author of The Value of Debt and Building Wealth, joins Steve to talk about the potential benefits of debt in terms of managing your retirement income, when debt should be “extinguished” as quickly as possible, and a variety of nuances in these and other scenarios.
Former wealth manager and book author Thomas Anderson says paying off debt to soon short-changes retirement savings
Tom Anderson shares his insight into how you can appropriately manage debt to break the paycheck-to-paycheck cycle.
“I would love for everybody to be able to pay off their house, but what happens is when you’re getting close to retirement, until you have enough money to pay off all of your house, I suggest why pay off any of it, because it’s a one-way liquidity trap.”
I want to dedicate more time to the simple things: a campfire with friends, a board game with the children. My theme for 2017 is quality over quantity.
“If you have debt at an interest rate over 10 percent – what I call oppressive debt – then you want to pay that down as quickly as possible. But other debt closer to 5 through 7 percent – think student loans and mortgages – should be treated more carefully.”
Another advocate for the use of debt in retirement is Tom Anderson, author of “The Value of Debt in Retirement.”
“No one is saying ‘all clear’ on a secular long-term rise – and rates can stay lower longer than most people think,” adds Tom Anderson, author of “The Value of Debt in Retirement.”
Having too much of your net worth tied up in your home leaves you vulnerable to large unexpected expenses such as nursing-home bills, says Thomas Anderson, author of The Value of Debt in Retirement.
Paying off oppressive debt should generally top the to-do list for inheritance recipients, with one exception, said Tom Anderson, author of The Value of Debt in Retirement: those without any emergency savings should set aside one month’s living expenses before paying down debt.
Tom Anderson, a Chicago-based private wealth manager and author of the book “The Value of Debt in Retirement,” recommends that you speedily eliminate any debt that comes with an interest rate of 10 percent or higher.
Tom Anderson authored the New York Times bestselling book: “The Value of Debt in Retirement” which shares his wise techniques on wealth management.
When a medical professional is considering how to tackle paying off his or her student loan debt, it’s most important to look at the rate of the debt. Tackle the debt with the highest rates first.
Overall, I highly recommend the book. It is an eye-opening exploration into a topic rarely if ever covered in the personal finance and investing literature.
Certain types of debt can be beneficial—assuming that a retiree understands the risks and takes certain precautions.
Tom walks through the evolution of his ideas and how his unique approach became embraced in the wealth management industry.
Why is this book great? Because it makes you wealthier. How can you finance a $100,000 Tesla for $250 per month? (note: that is cheaper than a Camry). Anderson explains how, by using an asset-backed loan (a loan backed by your investment account), you can borrow money at 3% (and some of my clients can borrow at 2%).
Conventional wisdom suggests the best retirement plans carry no debt. But advisors need to take a more sophisticated view and put a premium on debt-enhanced liquidity, argues author Tom Anderson.
At this event, Tom will address LGBT baby boomers that are nearing or in retirement and offer guidance on how they can be best prepared financially for their post-working lives.
Thomas Anderson reveals a new perspective on wealth management in his book, The Value of Debt in Retirement, and explains that in some cases debt can increase return and lower risk if it is handled correctly.
Tom Anderson, a financial advisor based in Chicago, knows debt inside and out as a wealth manager and former investment banker.
Thomas Anderson, author of The Value of Debt in Retirement, says there are actually three kinds of debt.
It has been ingrained in most of our minds for years. Debt is bad. Period. Get rid of it if you want to achieve financial freedom. But I say hold that thought. Not all debt is created equal. And some debt, if used the right way, may actually be beneficial to growing and maintaining your wealth.
THOMAS J. ANDERSON, a financial adviser, has set an equally daunting challenge for himself in “The Value of Debt in Retirement” (Wiley). He talks about debt for older people but not in the way you might expect. He says many retirees need more of it.
“A lot of baby boomers aren’t on track for retirement, and rushing to pay off a mortgage could be problematic for a lot of them,” said Thomas J. Anderson, author of “The Value of Debt in Retirement.” Instead, “having a portfolio of cash and conservative, globally diversified investments gives you liquidity and flexibility,” he said.
If you are retired, get your hands on the book. It will open your eyes, especially if you have a puritanical aversion to debt.
Controversial but nonetheless persuasive, Thomas J. Anderson’s book The Value of Debt in Retirement warns readers that debt, even the “enriching” variety, is not for everybody. But if you can handle the emotional and financial challenges of later-in-life debt, he says there is a way to “borrow smart” to increase your portfolio and liquidity — and your tax deductions.
Traditional retirement advice typically calls for paying off the mortgage and reducing debt as much as possible before moving on to what’s sure to be a smaller paycheck. Tom Anderson says that’s a big mistake.
Anderson, a wealth management advisor, discussed with me how the right kind of debt can help complement one’s assets. His book offers a bold point-of-view on debt as being a strategic asset in the management of individual and family wealth.
Anderson, author of “The Value of Debt in Retirement,” says a certain amount of the right kind of debt can help boost your financial portfolio and reduce risk.
Gerri Willis interviews Tom Anderson about “The Value of Debt in Retirement” on The Willis Report.
Host Gregg Greenberg interviews Tom.
Thomas J. Anderson, author of “The Value of Debt in Retirement,” describes securities-based lending as “a sibling of margin,” which allows you to use your investment portfolio as collateral to buy more stocks.
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