Mortgages Part V - Good Debt? Dangerous Drug? Or Both?

Mortgages Part V – Good Debt? Dangerous Drug? Or Both?

By The Banker | Blog Posts, Personal Finance

Is mortgage debt good debt? A dangerous drug? Or both? All debt acts like a drug. Debt artificially changes your personal financial metabolism, accelerating personal consumption, and exaggerating investment losses and gains.  Like any pharmaceutical, debt can be life-saving.  Without debt, you might have to wait an additional 10 years before you’ve saved up enough [&hellip

On Mortgages Part IV - What are points?  Are they Good, Bad, or Indifferent?

On Mortgages Part IV – What are points? Are they Good, Bad, or Indifferent?

By The Banker | Blog Posts, Personal Finance

Mortgage banks will quote you a mortgage interest rate, with the option to pay more money upfront, in the form of ‘points,’ for a lower interest rate over the life of the loan. The quick answer to “good, bad or indifferent?“ Mostly bad, for most people. It’s possibly good or indifferent under very specific scenarios. [&hellip

Mortgages Part III - 15-year vs. 30-year Mortgages

Mortgages Part III – 15-year vs. 30-year Mortgages

By The Banker | Blog Posts, Personal Finance

Why are 15 year mortgages cheaper than 30 year mortgages? The answer has to do with the interest-rate curve.  Contrary to what some may believe, the economy does not have one interest rate, but rather an infinite number of market-based rates, and dozens of important benchmark rates that determine the cost of money to different [&hellip

Book Review: The Millionaire Next Door - The Surprising Secrets of America's Wealthy

Book Review: The Millionaire Next Door – The Surprising Secrets of America’s Wealthy

By The Banker | Book Reviews, Personal Finance

 It seems overly dramatic [1] to write that Thomas Stanley and William Danko’s book The Millionaire Next Door changed my life, but actually it kind of did. Let me dispense with the major flaw in the book first. The authors conducted a study in the 1990s of close to 350 millionaires, with an average net worth [&hellip

This Guy Makes Too Much Sense

This Guy Makes Too Much Sense

By The Banker | Blog Posts, Personal Finance

In the past year I subscribed to the newsletter of an investment adviser about whom I know very little.  Pretty much every month he comes out with something awesome, and today’s newsletter was no exception.  As I’m not a client of his I can’t vouch for him as an adviser but I like the way [&hellip