The Value of Debt + Website – How to Manage Both Sides of a Balance Sheet to Maximize Wealth

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