Anderson claims that the strategic use of debt will allow you to have:
- Increased Liquidity – having more ready access to liquid funds or cash
- Increased Flexibility – having more options for addressing the direct and indirect costs of financial distress
- Increased Leverage – in good times, you have the ability to enhance and accelerate the accumulation of wealth
- Increased Survivability – a diminished likelihood that real survival issues, to your way of life or to life itself will arise.
A couple of the strategies in the book I liked in addition to the Asset-Based Loan Facility were options on how to finance cars, 2nd homes, boats, or other luxury items as well as how to maintain an ideal debt ratio.. It’s not about buying what you can’t afford, but about implementing a strategy to better purchase things you can afford and how to maximize value.
Anderson followed that book up with the 2015 release of “The Value of Debt in Retirement: Why Everything You Have Been Told is Wrong.” I’m looking forward to reading that one too.