You might read my passage more clearly and see that taxes are only one factor to consider. A more careful examination of nborrowing focuses on the opportunity cost of capital. The tax write off simply creates a greater margin of safety. If you believe that not having payment is so great I encourage you to go buy a powerplant so that you don’t have to worry about your electric biis. or a ca ble network to avoid the canble bills, while your at it you might consider buying farms for food so you don’t ahve that sneaking up on you.
Regardless of how you cut it we hvae bills to pay on a monthly basis. The fact that you can borrow money on the cheap at a fixed rate is an incredible financial tool if you know how to use it. I recently traveled to Brazil where home loan rates are 50%. Credit cards are 100% and a good deal on a car is 35%. Let’s face it the Bnaking system in the US is a fairly incredible system and for those who are smart creates an incredible avenue to crete wealth.
With respect to my father he sleeps well at night knowing that a federal pension is going to provide 7000 a month until the day he dies and half of that u ntil my mom dies so a couple graand a month is not something he had to worry about.
