Re: Debt (Was: How much is a FICO score worth?)

HW "Skip" Weldon wrote:

> I mention this just in case someone thinks that because of our
> emphasis on FICO scores, it is acceptable to have debt.  For the
> record, we can make exceptions for younger folks who haven't had time
> to pay off their home mortgage.  Beyond that, no.
> 
> I realize that some folks will say that their investments are earning
> more than their debt and they don't want to pay off their
> indebtedness.  To them I respond if they cannot BOTH invest and be
> debt free, then they are not living within their means.

I think this an artificial definition and not applicable to all
situations. I have a 4.875% home loan that is still bumping me up over
the standard deduction. I am also investing $30K of salary per year. To
say I'm not living within my means just doesn't make any sense.

I could pay off the balance of the loan, and might do so once the
principal ****tion of the payment gets too large. However, this is not
the house I plan to retire to. It's the house that fits my needs for
now. Whether it's paid off or carries a mortgage doesn't affect my
long-term plans very much.




Brian

-- 
If televison's a babysitter, the Internet is a drunk librarian who
won't shut up.
-- Dorothy Gambrell (http://catandgirl.com)

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators
strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond.  For all of the other tips and suggestions, see "FROM
THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on
the
Newsgroup.