Quote:
Originally Posted by Trailboss516
Like you, I would take $5M and 0 debt. Actually, I can't really think of any number where I'd prefer the scenario with the debt (and the subsequent double of assets).
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Again, there is no right or wrong answer. There are many factors to consider. The “holier than thou” zero debt response isn’t necessarily the smart answer.
If you know what you’re doing, it’s much easier to turn $10m into $20m than it is to turn $5M into $20M.
So suddenly having $20 million worth of assets and $5 million worth of debt is pretty good.
Of course, the risk/reward ratio is not for everyone, and it’s all contingent upon making smart investments. Definitely stay away from FTX/SBF.
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But that’s how people build wealth.
I’m about to retire but I’m not paying down the small amount of debt I have. Instead, I’m aggressively investing money to make even more money.
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