The Value of Debt

Foreword xi     Acknowledgments xv     Introduction xvii     Part 1: The Value of Debt in the Management of Wealth 1     Chapter 1: Strategic Debt Philosophy: An Overview 3     How This Book Can Add Value to Your Life 3     The Five Tenets (or Action Principles) of Strategic Debt Philosophy 4     Chapter 1: Summary and Checklist 14     Chapter 2: The Basic Idea: Limiting the Costs, the Impacts, and the Duration of Financial Distress 21     Risk of Financial Distress 22     The Direct and Indirect Costs of Financial Distress 23     The Impact of Financial Distress: Five Levels 24     The Duration of Financial Distress 25     The Four Indebted Strengths: A First Look 26     The One Thing You Must Consider! 26     Chapter 2: Summary and Checklist 29     Chapter 3: Strategic Debt Practices: An Overview 33     Understanding and Taking Advantage of Strategic Debt Philosophy 34     Achieving and Maintaining an Optimal Debt-to-Asset Ratio 37     Calculating Your Debt-to-Asset Ratio 41     Should Your Primary Residence Be Included in Your Debt Ratio? 43     When to Pay Down Your Debt, and When Not To 45     Advanced Practices and Scenarios 47     Chapter 3: Summary and Checklist 49     Part 2: The Assets-Based Loan Facility 53     Chapter 4: The Value of an Assets-Based Loan Facility (ABLF) 55     What an ABLF Is and How It Works 56     The Many Advantages of Having an ABLF in Place 59     Why Virtually Every Company Has a Line of Credit 61     Surviving Storms and Other Natural Disasters 62     The Criticality of Being Proactive and Assessing Risks 64     Family Finances: First Bank of Mom and Dad
 Elder Care Bridge Loan 67     Taking Advantage of Opportunities and Distressed Sales 68     Average ABLF Usage and the Win-Win-Win Scenario 70     Chapter 4: Summary and Checklist 71     Part 3: Scenarios for Success 75     Chapter 5: Long-Term Wealth Amplification through Capturing the Spread 77     The Basic Concept: Inherent Risks with Great Potential Rewards 77     Three Key Factors to Consider 79     Some Scenarios for Capturing the Spread 83     Synching with Your Investment Strategy 93     Chapter 5: Summary and Checklist 93     Chapter 6: Holistic Financing of the Expensive Things You Need and Want 99     A Better Way to Buy: In the Company of Holistic Financial Thinkers 99     Four Principles When Financing the Purchase of a Desired Item 100     A Better Way to Purchase a Vehicle (or Almost Anything Else) 108     Purchasing a Second Home: Pluses and Minuses 111     100 Percent Financing: The No Down Payment Real Estate Purchase Option 117     Chapter 6: Summary and Checklist 119     Chapter 7: Generating Tax-Efficient Income in Retirement or Divorce 123     Introduction: Three Goals (and Some Disclaimers) 123     An Opening Scenario for No Taxes in Retirement 124     Borrowing Versus Selling to Access Your Money 125     A Better Alternative to a Familiar Story 127     Tying It Back to Capturing the Spread 128     Revisiting Tax Issues 130     Making Use of Strategic Debt Strategies and Practices in Divorce 138     Chapter 7: Summary and Checklist 143     Chapter 8: Conclusion: What This Book Is Really About 149     What We Hope You Have Taken Away 150     Strategic Debt as a Financial Engine over the Decades 153     Paradoxes of Plenty: Some Surprises in Maintaining an Ideal Debt Ratio 158     Investing in the Future: A Cautionary Reminder 162     A Final Thought 164     Chapter 8 Summary: A Recap of the Book   s Significant Lessons 164     Part 4: Appendixes 169     Appendix A: The Varieties of Debt 171     Appendix B: Strategic Debt Practice for the Young and Those with Limited Assets 175     Appendix C: No Guarantees: Limiting the Risks of Investing in a Crazy World 185     Appendix D: Some Examples of Ideal Debt Ratios 209     Glossary 225     Bibliography 229     About the Author 231     About the Companion Website 233     Index 235