467-Debt: Should we Measure it Based on Financial Risk or Lifestyle Risk?

Radical Personal Finance

English - June 30, 2017 18:49 - 35 minutes - 33.2 MB - ★★★★ - 1.8K ratings
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Previous Episode: 466-The USA's Long-Term Fiscal Gap and Why It Matters to You (America’s Fiscal Insolvency and Its Generational Consequences by Professor Laurence Kotlikoff)

Next Episode: 468-Friday Q&A: How does an LLC Protect My Liability and Help Me Save on Tax, How Can I Lower My Tax Bill on the Sale of My House

I've long struggled to know how to advise people with regard to debt. On the one hand, the use of debt can dramatically increase the financial returns of an investment. On the other hand, debt can have a dramatic negative impact on the lifestyle of the borrower when everything goes wrong.

So, how do we reconcile these two things?

I've come to see that they're two entirely different scales. Because they are two totally different scales (think: how do kilograms and degrees Fahrenheit interact with one another), it's hard to simultaneously factor in both.

Enjoy the show,

Joshua

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