The equilibrium phase is for continuing to build assets for retirement income. The case study couple may chose to never pay down their mortgage and why not? Anderson says most companies don’t ever pay down their debt, rather, they increase their assets to keep their debt ratios constant.

Anderson believes that, in what he calls “the anti-debt hysteria world,’’ most people take on too much debt early in life, pay down the debt too aggressively and so can’t begin saving for retirement until later in life. He says there is a better way.
 
The Value of Debt in Building Wealth by Thomas J. Anderson. John Wiley & Sons, Inc. 246 pages. $29.95.

Eleanor O’Sullivan is an award-winning freelance journalist who writes for Financial Advisor magazine.

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