Far better it is to dare mighty things, to win glorious triumphs, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows neither victory nor defeat.

Theodore Roosevelt, The Strenuous Life

By , on April 23, 2010

Managing Debt, Money and Finance


Imagine for a moment a stable economy with low inflation. You can assume that your income would tend to rise following your entry into the work force until it reached a maximum sometime prior to retirement. Either before retirement, or certainly at the time of retirement, your income decreases typically.

Now think about debt, with its essence of buy now and pay later. By using debt in the early years, a worker can meet the huge needs of housing and transportation on that new, entry level income. The problem is we all feel young, even as we approach retirement and continue using debt like a kid in a candy store. As we get older most of us should borrow less and retire our debts. In my opinion, the correct way to enter retirement is with no debt, at least for most of us, perhaps those of us with a net worth up to the 80 to 90 percentile. That big group includes yours truly.



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