FIN 101 Lecture 3: Debt is Bad

11 views2 pages

periwinklemammoth360

12 Aug 2020

School

Ball State University

Department

Finance

Course

FIN 101

Professor

Olga S Mc Atee

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

A lot of financial people will tell you debt is good. They do this because that"s how they make money. This is why banks, mortgage companies, credit card companies, and others in the financial business are in business. These places make money by loaning you money. Through their fees and interest payments, they make billions of dollars each year. People will also tell you to consolidate your loans by taking out a little more to live your life because you can pay it back over time. You"re taking on more debt and training your habits to take on more debt than you can afford. Our government is in trillions of dollars of debt. This is because it"s irresponsible and force us to try and catch up financially our entire life. Don"t buy things you can"t afford and live within your means by staying on budget.

Related Questions

There are those that like to look at the return, or a dividend, that they would get for purchasing the stock. If you ever pay attention to the financial area of the news where companies say that they expect to have a dividend return next quarter of a certain amount and when they acheive this the stock would increase meaning that the stock is a good stock to have in ones portfolio, however if they do not, which is what we hear most often, the stock value would drop based on the fact that some would sell their stock to maybe buy a stock worth more when it comes to dividends. However there are times when looking at the dividend is not appropriate when looking at the stocks. There are companies that are growing rapidly and need to hold onto their cash to keep reinvesting in the growth process so they would not be giving out a dividend. There are companies that the dividend being lowered has nothing to do with the market however the company has decided that they would like to expand and so they hold onto their money and lower the amount of dividend or maybe pay out a stock dividend instead. If this is the case some times it would be a good stock to hold onto, however if it is to pay off debt because they are struggling then it might be a different case. Of course paying off debt now to grow later and still pay dividends is not a bad thing either. So know the company and research what is going on from time to time to make an educated decision. What are your thoughts on this statement? elaborate and explain

The Board would also like a recommendation of how you would structure the financial structure of the company (debt, equity, etc.). What premium do you think is necessary to stockholders to tender their shares and what to do with any debt remaining on the balance sheet.

Have you ever walked into a Wal-Mart or other big box store and been greeted by an older person who probably should have retired a decade ago? We all have at some time or another, and most of us think that when we're that age, we want to be taking vacations and spoiling our grand kids, not handing people shopping carts! Heck, none of us really -want to have to work during retirement. It's okay if you choose to work during retirement so that you have a reason to get up in the morning, but it should be your choice to do so.

Want to get rich? Use the power of compound interest working in your favor. A little bit of money invested well over a long period of time can equate to a lot of money! It's really a simple concept, but so many people fail to make use of the amazing power of compound interest. You can be very wealthy at retirement if you just put a relatively small amount of money away for retirement in a solid investment for a long period of time.

If you're under the age of 30, you can retire with a million dollars by age 65 by putting away a lot less money than you think! You'll need to put it in a solid investment account maybe a 401K- You just have to do the research and find a account at your work.. If you're really young, say age 20, you would only need to deposit very little into a good 401k to be a millionaire upon retirement.

You'll have to go find a savings calculator to figure out how much a month you need to put away to be a millionaire at retirement, but chances are it's a lot less money than you might think. Go to ANY OTHER FINANCIAL CALCULATOR. Please note two important things! 1) You must start as young as possible and 2) the return on your investment (percentage gain each year) makes an incredible difference in how you do. Someone who just puts money in CD's may average a 2% return and it would take much more money. If you get a professional broker or educate yourself, you should be able to get the traditional 7-8% return on your investments that someone using professional can usually get . This is why I always tell people to get the best advice they can through a professional broker as young as they can!

Your discussion is to tell me how much you should start investing now each month to have a cool million by retirement.

Make use of the power of compound interest in your financial life rather than letting the bank use compound interest against you through credit cards, mortgages and automobile loans. Compound interest is an amazing tool if you put away a percentage of your income away for retirement. When retirement occurs, you could do just about anything that you ever wanted--- just let it work for you and not somebody else.

rosejackal317

FIN 101 Lecture 3: Debt is Bad

Document Summary

Get access

Related Documents

FIN 101 Lecture Notes - Lecture 6: Credit Score In The United States, Unsecured Debt, Credit History

FIN 101 Lecture Notes - Lecture 5: Annual Percentage Rate, Credit History

FIN 101 Lecture Notes - Lecture 4: Debit Card

Related Questions