Comments on: The Great ‘Financial Freedom’ Myth that Keeps Millions Broke! http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke Future confident. Mon, 23 Apr 2012 03:09:01 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Kathryn Lang http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-34 Kathryn Lang Tue, 17 Nov 2009 11:07:33 +0000 http://www.onesherpa.com/?p=589#comment-34 Thanks for the reminder of the draining effect that debt has on finances and on people. We are working hard to teach our kids that there is a better way to handle finances than to pile on debt! Thanks for the reminder of the draining effect that debt has on finances and on people. We are working hard to teach our kids that there is a better way to handle finances than to pile on debt!

]]> By: OneSherpa http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-29 OneSherpa Wed, 10 Dec 2008 05:07:32 +0000 http://www.onesherpa.com/?p=589#comment-29 David,<br>Thanks for your comments. There are quite a number of people who hold your view which is why this whole topic needs discussion and debate. I plan to take up your comments more fully in a further blog post David,
Thanks for your comments. There are quite a number of people who hold your view which is why this whole topic needs discussion and debate. I plan to take up your comments more fully in a further blog post

]]> By: OneSherpa http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-33 OneSherpa Wed, 10 Dec 2008 05:07:32 +0000 http://www.onesherpa.com/?p=589#comment-33 David,<br>Thanks for your comments. There are quite a number of people who hold your view which is why this whole topic needs discussion and debate. I plan to take up your comments more fully in a further blog post David,
Thanks for your comments. There are quite a number of people who hold your view which is why this whole topic needs discussion and debate. I plan to take up your comments more fully in a further blog post

]]> By: Daid Butcher http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-28 Daid Butcher Wed, 10 Dec 2008 00:13:24 +0000 http://www.onesherpa.com/?p=589#comment-28 Andee<br>This is quite misleading. The problem with generalisations is that everyone's circumstances are different. If George had a rigorous investment analysis he MAY have had a smile on his face! You have forgotten tax benefits which can be substantial. Also, the actual equity needed to purchase his investment could have been minimal compared to the purchase price. Most importantly, over time the tenant and the tax man pay for the majority of his invesment. Cashflow is an important element when assessing an individual's capacity to buy into an investment property, and provided his projected debt to equity ratio (based on worst case scenario assessment) is comfortable, he MAY be able to use the increase in equity for his investment property to liquidate the debt on his principal residence. He would then have GOOD debt (tax-effective) and would liquidated his BAD debt. Of course property prices, like equities, can fall, and interest rates can rise. But his interest rate (after tax and deductions) could be around half that he is paying on his own residence and, most importantly, he takes a long-term view on property investment which historically has doubled in value every 8-10 years. I know you are looking at the impact of cash income, but generalisations such as yours cannot be applied to everyone<br>Cheers Andee
This is quite misleading. The problem with generalisations is that everyone's circumstances are different. If George had a rigorous investment analysis he MAY have had a smile on his face! You have forgotten tax benefits which can be substantial. Also, the actual equity needed to purchase his investment could have been minimal compared to the purchase price. Most importantly, over time the tenant and the tax man pay for the majority of his invesment. Cashflow is an important element when assessing an individual's capacity to buy into an investment property, and provided his projected debt to equity ratio (based on worst case scenario assessment) is comfortable, he MAY be able to use the increase in equity for his investment property to liquidate the debt on his principal residence. He would then have GOOD debt (tax-effective) and would liquidated his BAD debt. Of course property prices, like equities, can fall, and interest rates can rise. But his interest rate (after tax and deductions) could be around half that he is paying on his own residence and, most importantly, he takes a long-term view on property investment which historically has doubled in value every 8-10 years. I know you are looking at the impact of cash income, but generalisations such as yours cannot be applied to everyone
Cheers

]]> By: Daid Butcher http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-32 Daid Butcher Wed, 10 Dec 2008 00:13:24 +0000 http://www.onesherpa.com/?p=589#comment-32 Andee<br>This is quite misleading. The problem with generalisations is that everyone's circumstances are different. If George had a rigorous investment analysis he MAY have had a smile on his face! You have forgotten tax benefits which can be substantial. Also, the actual equity needed to purchase his investment could have been minimal compared to the purchase price. Most importantly, over time the tenant and the tax man pay for the majority of his invesment. Cashflow is an important element when assessing an individual's capacity to buy into an investment property, and provided his projected debt to equity ratio (based on worst case scenario assessment) is comfortable, he MAY be able to use the increase in equity for his investment property to liquidate the debt on his principal residence. He would then have GOOD debt (tax-effective) and would liquidated his BAD debt. Of course property prices, like equities, can fall, and interest rates can rise. But his interest rate (after tax and deductions) could be around half that he is paying on his own residence and, most importantly, he takes a long-term view on property investment which historically has doubled in value every 8-10 years. I know you are looking at the impact of cash income, but generalisations such as yours cannot be applied to everyone<br>Cheers Andee
This is quite misleading. The problem with generalisations is that everyone's circumstances are different. If George had a rigorous investment analysis he MAY have had a smile on his face! You have forgotten tax benefits which can be substantial. Also, the actual equity needed to purchase his investment could have been minimal compared to the purchase price. Most importantly, over time the tenant and the tax man pay for the majority of his invesment. Cashflow is an important element when assessing an individual's capacity to buy into an investment property, and provided his projected debt to equity ratio (based on worst case scenario assessment) is comfortable, he MAY be able to use the increase in equity for his investment property to liquidate the debt on his principal residence. He would then have GOOD debt (tax-effective) and would liquidated his BAD debt. Of course property prices, like equities, can fall, and interest rates can rise. But his interest rate (after tax and deductions) could be around half that he is paying on his own residence and, most importantly, he takes a long-term view on property investment which historically has doubled in value every 8-10 years. I know you are looking at the impact of cash income, but generalisations such as yours cannot be applied to everyone
Cheers

]]> By: Ben http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-27 Ben Tue, 09 Dec 2008 10:10:36 +0000 http://www.onesherpa.com/?p=589#comment-27 Great & simple explanation - looking forward to vid #2 Great & simple explanation – looking forward to vid #2

]]> By: Ben http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-31 Ben Tue, 09 Dec 2008 10:10:36 +0000 http://www.onesherpa.com/?p=589#comment-31 Great & simple explanation - looking forward to vid #2 Great & simple explanation – looking forward to vid #2

]]> By: John Anderson http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-26 John Anderson Tue, 09 Dec 2008 01:40:49 +0000 http://www.onesherpa.com/?p=589#comment-26 Andee brilliant video. Your simple way of explaining these issues is really helping me to move towards better investments and ultimately financial freedom. <br><br>Bring on the next one. Andee brilliant video. Your simple way of explaining these issues is really helping me to move towards better investments and ultimately financial freedom.

Bring on the next one.

]]> By: John Anderson http://onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke#comment-30 John Anderson Tue, 09 Dec 2008 01:40:49 +0000 http://www.onesherpa.com/?p=589#comment-30 Andee brilliant video. Your simple way of explaining these issues is really helping me to move towards better investments and ultimately financial freedom. <br><br>Bring on the next one. Andee brilliant video. Your simple way of explaining these issues is really helping me to move towards better investments and ultimately financial freedom.

Bring on the next one.

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