The Value of Debt

The Value of Debt

By Thomas J. Anderson

  • Release Date : 2013-08-28
  • Genre : Finance
  • FIle Size : 4.95 MB
Score: 5.0
From 14 Ratings
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The Value of Debt A New York Times bestseller and one of the Ten Best Business Books of 2013 by, this book brings a new vision of the value of debt in the management of individual and family wealth
In this groundbreaking book, author Tom Anderson argues that, despite the reflex aversion most people have to debt—an aversion that is vociferously preached by most personal finance authors—wealthy individuals and families, as well as their financial advisors, have everything to gain and nothing to lose by learning to think holistically about debt.

Anderson explains why, if strategically deployed, debt can be of enormous long-term benefit in the management of individual and family wealth. More importantly, he schools you in time-tested strategies for using debt to steadily build wealth, to generate tax-efficient retirement income, to provide a reliable source of funds in times of crisis and financial setback, and more.
Takes a "strategic debt" approach to personal wealth management, emphasizing the need to appreciate the value of "indebted strengths" and for acquiring the tools needed to take advantage of those strengths Addresses how to determine your optimal debt ratio, or your debt "sweet spot" A companion website contains a proprietary tool for calculating your own optimal debt ratio, which enables you to develop a personal wealth balance sheet
Offering a bold new vision of debt as a strategic asset in the management of individual and family wealth, The Value of Debt is an important resource for financial advisors, wealthy families, family offices, and professional investors.


  • Great Read!

    By MiamiBanker
    Everyone should read this book!! A well-written and easy to read book that helps people understand how to think about debt. Lot's of people use and apply these principles but I have never seen a book actually outline in a people friendly format how to think about debt. Kudos to the author - great job.
  • Bravo Tom!

    By The K Master
    Tom Anderson expertly navigates the art and science of personal balance sheet management in this new investment classic. Tom takes a measured and well reasoned approach to managing debt, setting aside extreme views at either end of the debt debate and leaving the reader armed with actionable ideas to help maximize their wealth. The Value of Debt should be in every advisor's personal library, with copies at the ready to give to their affluent and high net worth clients.
  • Groundbreaking

    By DanConner1
    This is a fantastic and informative read. The author constructs a conceptual framework around individuals' debt where most of us simply base our decisions on a knee-jerk aversion. He does this simply by reapplying common business practices to an individual's balance sheet. Thinking holistically about debt, striving to maintain an optimal debt ratio, capturing the spread; you'll quickly see that these practices should have been engrained into us even before achieving financial independence; you'll wish you would have known these concepts sooner, to have applied them for your benefit in many of your past financial decisions.
  • Think like a CFO

    By Leaner2tri
    There comes a time to reevaluate the way we think. Anderson presents a logical, timely process to use debt rather than be a victim of it. It's not a license to splurge, but to use well known, highly profitable corporate principles in our personal finance decisions.
  • Consider this book "equal time" for debt

    By BrokenAero
    When have you EVER read a book about Wealth/Investment that treated debt as anything more than a necessary evil? This book is a must-read. Whether readers embrace or reject its strategies, they will remember it for opening their minds to the opportunities that the proper use of Debt enables. As the author states: This is not a book about how to buy things you can't afford - it's about a better way to pay for things that you can afford. The author presents the pros and cons of his strategies, and he acknowledges that they may not be appropriate for everyone. However, if read with an open mind, I believe it will leave readers with a new perspective and respect for the power that the proper use of leverage can provide for maximizing the amount of capital they can put to work at any given point in time. The vast majority of Investment tomes that I've read treat Debt as a curse that should be flushed from balance sheets as soon as possible, This book presents it as the great investment catalyst and enabler that it can be.
  • We must understand assets AND liabilities to maximize net worth!

    By Jeff Finn
    As a former CPA and financial advisor I was very excited to read this book. I really believe in the author's holistic approach that a financial advisor must look at client's assets and liabilities to increase their net worth. I often worked with retirees who had their home paid off but few liquid assets and little cash flow. Had they used the strategies in this book they probably would have been better off. Although this book was technical, I found it very easy to read and follow. I am excited to share this book with some of my debt adverse friends and family!
  • Groundbreaking!

    By Cedar girl
    This book challenges generations of thinking "no debt" is virtuous. The author defines "good" debt vs. "bad" debt and has the reader step back to analyze the total balance sheet. The book is a must read for people of all ages and stages as well as every professional financial advisor. This is groundbreaking.
  • Tremendous read

    By Fmbr2
    This was a very thought-provoking read. The beginning of the book lays a great framework for the main point - approaching your personal finances more like a company would by thinking holistically about your balance sheet, both assets and liabilities. For those that have spent their lives studying and working in business, you quickly realize we make decisions as individuals that we would get fired for if we ran the finances of our company the same way. The last four chapters really start to mess with your head with all the possibilities of a sound debt strategy - particularly Chapter 6 when it discusses better ways to finance luxury items like cars and boats. Tremendous read overall!
  • Debt is a not a bad four letter word

    By bigdmk
    This book is an easy read, with simple, clear examples that provide the tools for expanding one's thinking about methods of personal investment and exploring alternatives for making large scale purchases. Although debt is a four letter word, this book shows it is not evil or undesirable. It convincingly forces you to look at debt as a good thing, demonstrating how one can leverage debt for personal gain and improved financial security. Well worth the time it takes to read it.
  • Fantastic book!

    By ThatDamnSasquatch
    I read the book. I sat in his presentation and there is no doubt the concepts presented in this book are revolutionary to the entire financial planning industry. The book is logical, interesting and thoroughly entertaining. A must read for anyone serious about their finances or in the industry.