Welcome to the Wealth Curve Talk Podcast. In this episode, John continues his series on the Wealth Curve Blueprint. This time he explains debt liability. This is the relationship between your debt payments and your income.
John is the author of 5 Ways Your Wealth is Under Attack. He has lectured on financial planning at various faculties. He has also received the Five StarSM Wealth Manager Award for 2011, 2012, 2013, 2014, 2015 and 2016.
John’s strength is his ability and commitment to improve the level and quality of the financial planning process.
His dedication to his clients’ growth involves an evolving strategy. His focus is to meet the demands, desires, and needs of his clients in a changing economic environment.
Here are John’s don’t-miss points:
- Debt liability refers to car loans, student loans, credit cards, inter-family loans, medical loans, and 401(k) loans.
- Further, it includes “good debt” (which is tax-deductible) and “bad debt,” which isn’t.
- In addition, if your debt is too high, your principal and interest payments are going to be too high as a percentage of your income. That will hurt your lifestyle, your savings rate, and the efficiency of your tax benefits.
- Also, your debt can be a product of not planning well for future liabilities. Decisions you make now, or that you made in the past, will affect what you can do in the future.
- Avoid future debt by planning well for future liabilities like your kids’ college, weddings, bar mitzvahs, and bat mitzvahs.
- Lastly, while we can’t get you instantly out of debt, we can work to make your debt bearable so that you can enjoy life and optimize your financial situation now. We can make sure you get greater tax benefits from it and make it less onerous on your daily cash flow.
Let’s build a Blueprint and Scorecard, let’s look at your debt liability, and let’s optimize it so that you can accumulate wealth and live your life the way you want to. For more, listen above.
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