There are “good” debts to have. A fixed-rate mortgage for instance. You won’t get rich owning a home but a prudently purchased house in a desirable neighborhood will protect your investment over the long run. Once you have your home paid off, your cost of living falls to local taxes and maintenance. Pretty nice!
Most other loans are a huge waste of money. Credit cards at 19% or more, obviously, but also home equity lines of credit and even car loans. The problem with car loans is that new vehicles lose value instantly. You get stuck paying interest on a purchase that cannot be recouped at all. Even if the car retains its value, as some do, that early loss more than eliminates residual value once you subtract interest costs.
If you want a newer car, you’re much better off looking for an off-lease car that someone else drove for 24 months. It’s value is easier to ascertain and your existing car sold privately may generate enough cash to nearly buy the new one. Usually, too, lease cars are top-of-the-line models with all the latest features — that someone else paid for.
Small-cap winners galoreThe big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.