Re: Interest tax deductions- good debt vs bad debt

kastnna wrote:

> I agree that the tax deductibility doesn't define good or bad. As you
> said, it's "icing on the cake". "Good" and "bad" are surely relative
> terms, but  I don't agree that the ending value of the asset relative
> to the loan expense defines good or bad either. I consider it to be
> merely a consideration also.

I agree and I would extend this to a more generalized rate of return 
argument.  If I can earn a higher rate that the rate of the loan, the 
loan is not bad regardless of purpose (well, almost regardless).  For 
example, I could have paid cash for my last car, but at 0.9% interest I 
thought it made more sense to leave money in the market.  That's the 
same reason I didn't put more down on my house.

-Will

william dot trice at ngc dot com

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