Brute 23":366iyxzv said:That is a good deal and its hard to argue with being bebt free....
BUT if your loan is for 8% and you were making 13% on the money. YOu could have had the ranch, money in the bank, and still be making 5%. :lol:
It doesn't work like that. First of all you should be managing a hedge fund someplace instead of punching cows if you can guarantee a 13% return on your financial investments year in and year out (7% is probably closer to the norm over time).....and you are neglecting the fact that you have to pay the IRS on that investment income BEFORE you make your loan payment. While you might expense the interest, you still have the issue of the principal payments.