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<p>Foreword xi</p> <p>Acknowledgments xv</p> <p>About the Author xix</p> <p>Introduction xxiii</p> <p>Chapter 1: The Traditional Glide Path 1</p> <p>In a Perfect World, No Debt! But Our World Isn’t Perfect 2</p> <p>You Owe a Debt to Your Future Self 3</p> <p>Break the Paycheck-to-Paycheck Cycle 4</p> <p>Companies Embrace Balance 5</p> <p>The Power of Savings 6</p> <p>A New Glide Path: Debt Adds Value 8</p> <p>Finding Your Glide Path 11</p> <p>The Need for Specific, Actionable Advice 12</p> <p>Endnotes 14</p> <p>Chapter 2: Foundational Facts 17</p> <p>All Debt Is Not Equal: Oppressive, Working, and Enriching Debt 18</p> <p>Paying Down Debt Gives You a Return Equal to Your After-Tax Cost of That Debt 20</p> <p>Sh∗t Happens—Value Liquidity 20</p> <p>Yes, You Can—Save 24</p> <p>Compounding Matters—For the Upside and the Downside 26</p> <p>The Past Is the Past; Focus on the Future 29</p> <p>Behavioral Economics Matters 30</p> <p>Endnotes 31</p> <p>Chapter 3: A Balanced Path to L.I.F.E. 33</p> <p>Phase 1: Launch! 37</p> <p>Phase 2: Independence 51</p> <p>Endnotes 62</p> <p>Chapter 4: Freedom and Equilibrium 65</p> <p>Phase 3: Freedom 66</p> <p>Phase 4: Equilibrium 76</p> <p>Bonus Phase: No Debt! 80</p> <p>Endnotes 82</p> <p>Chapter 5: The Other Side of the Balance Sheet 85</p> <p>The Probability of an 8 Percent Rate of Return Is Zero 86</p> <p>Risk, Return, and Diversification 87</p> <p>What about Interest Rates and Cost of Debt? 95</p> <p>What about One of Your Biggest Assets? Your House 97</p> <p>Three Buckets of Money 99</p> <p>Risk Matters—The Risk of Time 105</p> <p>Factoring Leverage into Returns 107</p> <p>Debt as an Integrated Part of Your Investment Philosophy 109</p> <p>Endnotes 110</p> <p>Chapter 6: Proof of the Value of Debt 113</p> <p>The Big Picture—Debt Can Be Valuable 115</p> <p>Children and College Savings 127</p> <p>Interest Rates and Debt Service CoverageRatios 128</p> <p>Endnotes 128</p> <p>Chapter 7: Conclusion 131</p> <p>Taking a Stand Against Conventional Wisdom 132</p> <p>Endnotes 137</p> <p>Appendix A: Phi Phound Me 139</p> <p>Inspiration Arrived 140</p> <p>Not Perfect Makes Perfect 142</p> <p>Applying the Fibonacci Sequence 142</p> <p>From 13 to 8 148</p> <p>From 8 to 5 150</p> <p>Super Cool Math 151</p> <p>Endnotes 154</p> <p>Appendix B: Understanding the Power of Securities-Based Lending 155</p> <p>Case Study 156</p> <p>The Power of Securities-Based Lending 159</p> <p>First Bank of Mom and Dad 162</p> <p>Endnotes 163</p> <p>Appendix C: Home Purchase and Financing Considerations 165</p> <p>Don’t Rush to Buy a House 166</p> <p>When Home Ownership Can Go Wrong 168</p> <p>Save Yourself the Anguish 169</p> <p>Be Careful! 170</p> <p>All Mortgages Are Not Created Equal 171</p> <p>Owning Can Be Great 175</p> <p>Endnotes 176</p> <p>Appendix D: The Millennial’s Guide to Debt and Getting Started 179</p> <p>Saddled by Student Loans 180</p> <p>The Best Budget: Spend Less Than You Make 182</p> <p>Debt-to-Income Ratios 185</p> <p>Pulling These Concepts Together 188</p> <p>Endnotes 188</p> <p>Appendix E: The Math Behind the Examples 191</p> <p>Chapter 1: The Nadas, Steadys, and Radicals 193</p> <p>Chapters 3 and 4: Brandon and Teresa 199</p> <p>Higher Income 210</p> <p>Endnotes 216</p> <p>Glossary 219</p> <p>Resource Guide 225</p> <p>Bibliography 231</p> <p>Suggested Reading 233</p> <p>Index 235</p>

<p><b>THOMAS J. ANDERSON </b> is founder and CEO of Supernova Companies, a financial technology company providing a comprehensive platform focused on managing both sides of an individual’s balance sheet. A nationally renowned financial planning expert, he is author of <i>The Value of Debt,</i> which made the bestseller list at <i>The New York Times</i> and <i>USA Today. </i></p>

<p>Conventional financial management advises people to pay off debt as quickly as possible, but <i>The Value of Debt in Building Wealth</i> turns this idea on its head and shows you how to strategically use debt to your advantage. This comprehensive road map provides specific and actionable direction on how to leverage both sides of your balance sheet so you can establish a financial safety net, grow your personal wealth, support your dreams, and save for retirement.</p> <p>In his bestselling <i>The Value of Debt</i>, nationally renowned financial planning expert Thomas Anderson introduced his thought-provoking approach to growing wealth by incurring strategic and purposeful types of debt. In this long-awaited follow-up, he applies his widely proven approach to all stages of your financial life with up-to-date case studies and a tangible framework that makes it easy to custom-fit his methodology to your unique circumstances and practice it in the real world. He provides tools and specific guidance for optimizing your assets and debt in order to evolve into the next phase and eventually retire—possibly making more money than you did when you were employed! The cornerstone to his accessible approach lies in the power of compound interest, one of the most basic investing principles, and this extensive guide offers in-depth discussions on the asset side of your personal balance sheet with actionable ideas on risk, return, and diversification so you can capture the spread over time in bull and bear markets. From investment basics to the nuances of fixed and floating debt, this authoritative guide shows you how to make debt work for you, and includes discussion of: <ul><li>Where you should direct your cash flow funds</li> <li>How to get a very important jumpstart on maximizing your investments earmarked for retirement </li> <li>The importance of liquidity and lines of credit</li></ul> <p><i>The Value of Debt in Building Wealth</i> reveals a path to balance and financial security through optimizing your resources.

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