The Value of Debt in Building Wealth. Thomas J. Anderson

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СКАЧАТЬ is a great investment that maintains its value after depreciation, then investors should be willing to buy houses and rent them at a low rate to consumers, capturing not only the rental income, but also the appreciation of the asset as their total return. Rental rates could in fact be lower than purchasing rates. This in fact happens in many markets today, within and outside of housing.

4

Note that many consumers' desire to own is not limited to assets that we perceive to be likely to go up in value over time. Consumers also want to own items that are more likely to go down in value such as cars, boats, clothing, and intangible assets such as education (which theoretically leads to higher productivity and wages, a positive trade-off, or better future opportunity).

5

Results based on survey conducted by Supernova Companies in December 2015. The survey featured 394 respondents who met the following criteria: age 21–60, minimum of college degree, and annual income of at least $50,000. Full results are available here: https://www.surveymonkey.com/results/SM-KCDY3XGJ/.

6

Nari Rhee, “The Retirement Crisis: Is it Worse than We Think?” National Institute on Retirement Security (June 2013). http://www.nirsonline.org/storage/nirs/documents/Retirement%20Savings%2 °Crisis/retirementsavingscrisis_final.pdf.

7

Angela Johnson, “76 % of Americans are living paycheck-to-paycheck.” CNN Money (June 24, 2013). http://money.cnn.com/2013/06/24/pf/emergency-savings/.

8

Ibid.

9

Rhee, “The Retirement Crisis.”

10

This is a central theme of Thomas J. Anderson, The Value of Debt (Hoboken, NJ: John Wiley & Sons, 2013). In particular, Chapter 3 goes into extensive detail on corporate debt ratios. For those who would like detail, see endnote 3 from Chapter 3 of The Value of Debt.

11

Lucinda Shen, “Now There Are Only Two U.S. Companies With the Highest Credit Rating,” Fortune (April 26, 2016), http://fortune.com/2016/04/26/exxonmobil-sp-downgrade-aaa/.

12

The case studies presented are for educational and illustrative purposes only and cannot guarantee that the reader will achieve similar results. Your results may vary significantly and factors such as the market, personal effort, and many others will cause results to vary. All of the case studies throughout the book are hypothetical and not intended to demonstrate the performance of any specific security, product, or investment strategy. Opinions formulated by the author are intended to stimulate discussion.