[Raybyrnes]

Daniel
I would not go buying the software youa re referring to but I am going to point out somewhting with respect to human behavior.

My wife wnet on a few diets and tried to do it on her own. It worked OK. She joined weightwatchers and paid money. She lost the weight and then got the luxury of not having to pay as long as she kept to her target weight. This is an empowering event. She gained control and simultaneously was penalized if she fell off.

Now you could easliy argue that she never needed to pay for weight watchers but the reality was that she was paying to achieve a certain outcome.

If someone who was disorganized about finances paid for a program and by paying were diciplined moving forward becasue they paid big bucks for a program than maybe they to achieved the desired outcome.

I am not going to judge as critically as others. Not everyone is good with finance or organized with their money.

[Raybyrnes]

Daniel
I would not go buying the software youa re referring to but I am going to point out somewhting with respect to human behavior.

My wife wnet on a few diets and tried to do it on her own. It worked OK. She joined weightwatchers and paid money. She lost the weight and then got the luxury of not having to pay as long as she kept to her target weight. This is an empowering event. She gained control and simultaneously was penalized if she fell off.

Now you could easliy argue that she never needed to pay for weight watchers but the reality was that she was paying to achieve a certain outcome.

If someone who was disorganized about finances paid for a program and by paying were diciplined moving forward becasue they paid big bucks for a program than maybe they to achieved the desired outcome.

I am not going to judge as critically as others. Not everyone is good with finance or organized with their money.

[Raybyrnes]

Daniel
I would not go buying the software youa re referring to but I am going to point out somewhting with respect to human behavior.

My wife wnet on a few diets and tried to do it on her own. It worked OK. She joined weightwatchers and paid money. She lost the weight and then got the luxury of not having to pay as long as she kept to her target weight. This is an empowering event. She gained control and simultaneously was penalized if she fell off.

Now you could easliy argue that she never needed to pay for weight watchers but the reality was that she was paying to achieve a certain outcome.

If someone who was disorganized about finances paid for a program and by paying were diciplined moving forward becasue they paid big bucks for a program than maybe they to achieved the desired outcome.

I am not going to judge as critically as others. Not everyone is good with finance or organized with their money.

[Raybyrnes]

I have routinely heard people make the argument that when you own your home you shelter yourself from the lender because you don’t ahve a payment to worry about. I disagree with this because there is alwasy payments to be made on a reoccurring basis. This includes taxes, food, utilities etc which all require income.

When I have a couple of 100 thousand sitting in liquid accounts, irregardless of the payments, I can last a long time without any income at all.

Anyone who put 20% down on a home and is struggling to make payments right now would have been safer to avhe taken on the higher monthly payment but they would now have that 20% to make payment over the next couple of years.

Safety was having cash and control. When they put the 20% down they lowered their monthly payment, but they gave up control of their cash and in my opinion took on more risk.

So in the end it is all about trying to find ways of getting overcompensated for risk. These opportunities do not wave to you, you have to find them. For some it is worth their time. For others not so much.

For you you find that you can buy homes and your sweat equity reduces your risk. Nothing wrong with that. Seems to hold true to my formula.

[Raybyrnes]

I have routinely heard people make the argument that when you own your home you shelter yourself from the lender because you don’t ahve a payment to worry about. I disagree with this because there is alwasy payments to be made on a reoccurring basis. This includes taxes, food, utilities etc which all require income.

When I have a couple of 100 thousand sitting in liquid accounts, irregardless of the payments, I can last a long time without any income at all.

Anyone who put 20% down on a home and is struggling to make payments right now would have been safer to avhe taken on the higher monthly payment but they would now have that 20% to make payment over the next couple of years.

Safety was having cash and control. When they put the 20% down they lowered their monthly payment, but they gave up control of their cash and in my opinion took on more risk.

So in the end it is all about trying to find ways of getting overcompensated for risk. These opportunities do not wave to you, you have to find them. For some it is worth their time. For others not so much.

For you you find that you can buy homes and your sweat equity reduces your risk. Nothing wrong with that. Seems to hold true to my formula.

[Raybyrnes]

I have routinely heard people make the argument that when you own your home you shelter yourself from the lender because you don’t ahve a payment to worry about. I disagree with this because there is alwasy payments to be made on a reoccurring basis. This includes taxes, food, utilities etc which all require income.

When I have a couple of 100 thousand sitting in liquid accounts, irregardless of the payments, I can last a long time without any income at all.

Anyone who put 20% down on a home and is struggling to make payments right now would have been safer to avhe taken on the higher monthly payment but they would now have that 20% to make payment over the next couple of years.

Safety was having cash and control. When they put the 20% down they lowered their monthly payment, but they gave up control of their cash and in my opinion took on more risk.

So in the end it is all about trying to find ways of getting overcompensated for risk. These opportunities do not wave to you, you have to find them. For some it is worth their time. For others not so much.

For you you find that you can buy homes and your sweat equity reduces your risk. Nothing wrong with that. Seems to hold true to my formula.

[Raybyrnes]

I have routinely heard people make the argument that when you own your home you shelter yourself from the lender because you don’t ahve a payment to worry about. I disagree with this because there is alwasy payments to be made on a reoccurring basis. This includes taxes, food, utilities etc which all require income.

When I have a couple of 100 thousand sitting in liquid accounts, irregardless of the payments, I can last a long time without any income at all.

Anyone who put 20% down on a home and is struggling to make payments right now would have been safer to avhe taken on the higher monthly payment but they would now have that 20% to make payment over the next couple of years.

Safety was having cash and control. When they put the 20% down they lowered their monthly payment, but they gave up control of their cash and in my opinion took on more risk.

So in the end it is all about trying to find ways of getting overcompensated for risk. These opportunities do not wave to you, you have to find them. For some it is worth their time. For others not so much.

For you you find that you can buy homes and your sweat equity reduces your risk. Nothing wrong with that. Seems to hold true to my formula.

[Raybyrnes]

So I pass the bias test because I have nothing to gain except potential inheritance, but I reccommended to my father about 2 to 3 years ago to take out a 15 or 30 year mortgage as rates got into the 4’s so that he could invest in the market.

My feeling was that interest rates were artificially low and that for someone like my father who had guraanteed income (federal Employee) it presented an ideal opportunity for him to improve his rate of return.

Additonally I looked at break points on managed funds (The American Funds) and felt that he could get good money mangement at a reduced cost by moving his money into a single Fund family with different categories of investment options.

To me I see know reason to shorten the life of this type of debt. I feel the hurdle rate of 4 or 5 % is fairly easy to outperform over the long haul. Add to it the potential tax savings and the fact that you can lower your costs of entry into different fund families due to the economies of scale and I come to the opinion that it is best to utilize debt in this capacity.

[Raybyrnes]

So I pass the bias test because I have nothing to gain except potential inheritance, but I reccommended to my father about 2 to 3 years ago to take out a 15 or 30 year mortgage as rates got into the 4’s so that he could invest in the market.

My feeling was that interest rates were artificially low and that for someone like my father who had guraanteed income (federal Employee) it presented an ideal opportunity for him to improve his rate of return.

Additonally I looked at break points on managed funds (The American Funds) and felt that he could get good money mangement at a reduced cost by moving his money into a single Fund family with different categories of investment options.

To me I see know reason to shorten the life of this type of debt. I feel the hurdle rate of 4 or 5 % is fairly easy to outperform over the long haul. Add to it the potential tax savings and the fact that you can lower your costs of entry into different fund families due to the economies of scale and I come to the opinion that it is best to utilize debt in this capacity.

[Raybyrnes]

So I pass the bias test because I have nothing to gain except potential inheritance, but I reccommended to my father about 2 to 3 years ago to take out a 15 or 30 year mortgage as rates got into the 4’s so that he could invest in the market.

My feeling was that interest rates were artificially low and that for someone like my father who had guraanteed income (federal Employee) it presented an ideal opportunity for him to improve his rate of return.

Additonally I looked at break points on managed funds (The American Funds) and felt that he could get good money mangement at a reduced cost by moving his money into a single Fund family with different categories of investment options.

To me I see know reason to shorten the life of this type of debt. I feel the hurdle rate of 4 or 5 % is fairly easy to outperform over the long haul. Add to it the potential tax savings and the fact that you can lower your costs of entry into different fund families due to the economies of scale and I come to the opinion that it is best to utilize debt in this capacity.

[Raybyrnes]

So I pass the bias test because I have nothing to gain except potential inheritance, but I reccommended to my father about 2 to 3 years ago to take out a 15 or 30 year mortgage as rates got into the 4’s so that he could invest in the market.

My feeling was that interest rates were artificially low and that for someone like my father who had guraanteed income (federal Employee) it presented an ideal opportunity for him to improve his rate of return.

Additonally I looked at break points on managed funds (The American Funds) and felt that he could get good money mangement at a reduced cost by moving his money into a single Fund family with different categories of investment options.

To me I see know reason to shorten the life of this type of debt. I feel the hurdle rate of 4 or 5 % is fairly easy to outperform over the long haul. Add to it the potential tax savings and the fact that you can lower your costs of entry into different fund families due to the economies of scale and I come to the opinion that it is best to utilize debt in this capacity.

[Raybyrnes]

ucodegen

I’m assuming they leave you out of the room during brain storming sessions. Guy asked about a program and you have added that you don’t think it works and that you wouldn’t buy it. Enough said. I think at this point everyone knows where you are coming from.

Intellectual discourse means finding things out. Seems like a fairly decent excercise. As the excercise progresses it often times reveals alternative benefits such as whether or not it makes sense to prepay a loan regardless of the method.

[Raybyrnes]

ucodegen

I’m assuming they leave you out of the room during brain storming sessions. Guy asked about a program and you have added that you don’t think it works and that you wouldn’t buy it. Enough said. I think at this point everyone knows where you are coming from.

Intellectual discourse means finding things out. Seems like a fairly decent excercise. As the excercise progresses it often times reveals alternative benefits such as whether or not it makes sense to prepay a loan regardless of the method.

[Raybyrnes]

ucodegen

I’m assuming they leave you out of the room during brain storming sessions. Guy asked about a program and you have added that you don’t think it works and that you wouldn’t buy it. Enough said. I think at this point everyone knows where you are coming from.

Intellectual discourse means finding things out. Seems like a fairly decent excercise. As the excercise progresses it often times reveals alternative benefits such as whether or not it makes sense to prepay a loan regardless of the method.

[Raybyrnes]

ucodegen

I’m assuming they leave you out of the room during brain storming sessions. Guy asked about a program and you have added that you don’t think it works and that you wouldn’t buy it. Enough said. I think at this point everyone knows where you are coming from.

Intellectual discourse means finding things out. Seems like a fairly decent excercise. As the excercise progresses it often times reveals alternative benefits such as whether or not it makes sense to prepay a loan regardless of the method.

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