Letter Re: Compound Interest on Debt
HJL, I was going to leave a short comment but this deserves wider exposure. Amen to all that about debt in the Zero Hedge article. Compound interest is not your friend if you are paying it. I bought into leverage for asset acquisition. Robert Kawasaki (intentionally incorrect) has a special place in my heart or is that some place much lower… It is a serious mistake not to take the income sheltered by depreciation and put it toward loan principal reduction. When you hit 50 and want to be out of debt the cold reality hits that profit and income …