Originally Posted by mts (Post 2328219)

Sheep, huh.....that's silly. He generally gives pretty sound advice.

The taking the low interest rate and investing the difference is a sound practice to a point, and certainly makes the most sense at 0%. However, first, your average consumer will not invest the difference, your average consumer will do exactly that, consume it. Anything other than 0% interest aside, your average consumer will be better off avoiding non-tax deductible debt when possible. Second, as I've read the last few pages of this the other assumptions made on the strategy are higher returns in the market like we've had the past couple years. If you've already forgotten we've had two pretty huge busts over the last dozen years or so. I can tell you first hand the heavier equity players have been having a freakin shopping spree the last 4 or 5 years at the expense of the heavily leveraged "lions" who have been trying to avoid bankruptcy when their investments dropped well below their leverage and they had to pay the piper.

Originally Posted by MMC Racing (Post 2329464)

The average consumer needs Dave Ramsey. They are the sheep of the world that need to be told exactly what to do.

A number of posters here seem to believe there is only two scenarios. You either pay it off completely, or you finance at low/no interest and blow the cash. Either blow it on stuff or put it in the "risky stock market".

No, there is the 3rd option. People that know what they are doing lock up the historically low debt rates and put that cash to work to build true wealth. Those are the lions.

If this concept seems completely wrong to you, you are right to not follow it since you aren't a lion.

Originally Posted by mts (Post 2329602)

The concept isn't wrong, in certain cases it can be very appropriate but there is a lot more that goes into it than just getting highly leveraged at low interest rates and investing. Moderation and balance is important.....as is what you are investing in, how leveraged you get and what your investment time horizon is. Also 2 different people can look at a 370z purchase with the exact same financing options, one decide to pay cash and the other decide to finance and neither one of them be wrong.

Your continued "sheep" and "lion" comments are completely silly and show a lack of wisdom. You sound like a young man without enough experience to have seen multiple economic cycles. Very few wealthy people finance cars unless the interest rate is 0% and and I do not. If that makes us "sheep" in your eyes so be it.

Originally Posted by MMC Racing (Post 2329701)

If you are 60, then I am a very young man at only 38. I guess it is all about perspective.

.

Originally Posted by MMC Racing (Post 2329464)

No, there is the 3rd option. People that know what they are doing lock up the historically low debt rates and put that cash to work to build true wealth. Those are the lions.

If this concept seems completely wrong to you, you are right to not follow it since you aren't a lion.