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View Poll Results: What is your debt to total asset ratio?
I have no debt whatsoever, not even a credit card bill 149 51.03%
<10% 98 33.56%
10-19.99% 27 9.25%
20-29.99% 10 3.42%
30-39.99% 5 1.71%
40% or greater 3 1.03%
Voters: 292. You may not vote on this poll

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Old 09-30-2016, 09:42 AM   #141
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I might have the highest ratio in the thread! 50.87%


Breakdown:
Debt = 550k = 110k student loans + 440k mortgage
Assets = 1.1M = 650k house + 300k retirement accounts + 125k taxable brokerage account + 25k savings account


Age 34
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Old 09-30-2016, 10:08 AM   #142
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Quote:
Originally Posted by B0bL0blaw View Post
I might have the highest ratio in the thread! 50.87%


Breakdown:
Debt = 550k = 110k student loans + 440k mortgage
Assets = 1.1M = 650k house + 300k retirement accounts + 125k taxable brokerage account + 25k savings account


Age 34
And you may well be the youngest respondent.
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Old 09-30-2016, 10:10 AM   #143
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And you may well be the youngest respondent.
That's what I'm telling myself so that I don't feel too bad about being the outlier!
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Old 09-30-2016, 10:13 AM   #144
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That's what I'm telling myself so that I don't feel too bad about being the outlier!
You have a positive net worth of over half a million dollars, and you are at the peak of your human capital.
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Old 09-30-2016, 10:51 AM   #145
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You have a positive net worth of over half a million dollars, and you are at the peak of your human capital.
Tell me more... Ha! Yeah I'm not down in the dumps about my current financial status, just appropriately humbled by the degree to which I am currently leveraged!
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Old 09-30-2016, 11:05 AM   #146
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Debt has nothing to do with the interest rate, there's plenty of people that buy cars or furniture at zero percent interest. Same for borrowing money from your family.

Debt to most consumers is getting a loan that's paid back over time. Charging stuff on a CC and paying it back when the monthly bill comes is not debt under that understanding, just like it isn't for utility bills or taxes due. But strictly speaking it IS debt because you owe another party for goods or services rendered. Or you have a tax liability that has to be paid, so you owe the gov't. before the tax due date. And legally it will be treated as debt if you fail to pay.

We just don't think of it that way because you don't obtain a formal loan with monthly payments, even though that's really what you're doing informally from month to month.

Of course you are right, but i couldn't disagree with you more. You are splitting hairs into the monthly minutia of service on credit. While mathematically you are more right than me, you would be wholly unwelcome in a reasonable discussion at a party with average people, and your "rightness" has no impact on any of them. Pick your battles better, yolo, and this is hardly worth your time.


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Old 09-30-2016, 03:29 PM   #147
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I disagree. At the party, he/she would be over in the corner splitting hairs with me and (assuming he/she is not too serious/earnest about everything) we would be enjoying ourselves.

I like hearing outlier points of view when they have logic to back them up.

Quote:
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you would be wholly unwelcome in a reasonable discussion at a party with average people,
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Old 09-30-2016, 05:07 PM   #148
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0%, not counting CC paid in full every month.
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Old 09-30-2016, 06:55 PM   #149
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Interesting about the property taxes - here in CA I think you PREpay the property taxes... so if you go to sell, before the end of the year, you get a pro-rated refund.

Insurance is also pre-pay for the year. So those would not be debts if you pay the taxes and insurance in full when they are due.

Now the utility bills... there's an argument to be made that pre-billing usage is a liability.
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Old 09-30-2016, 11:09 PM   #150
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Quote:
Originally Posted by B0bL0blaw View Post
I might have the highest ratio in the thread! 50.87%


Breakdown:
Debt = 550k = 110k student loans + 440k mortgage
Assets = 1.1M = 650k house + 300k retirement accounts + 125k taxable brokerage account + 25k savings account


Age 34
If you moved here, you could buy a nice 4/3 house on 1/4+ acre for $210k (paid with current equity) and change your situation to 110K student loans and 450k assets in accounts..... COL matters
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Old 09-30-2016, 11:46 PM   #151
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I answered <10%, but only owe monthly CC bills, which I pay off totally every month. Oh well. Results will be off a bit I assume--no way to edit that I can tell.
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Old 10-01-2016, 12:04 AM   #152
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I answered <10%, but only owe monthly CC bills, which I pay off totally every month. Oh well. Results will be off a bit I assume--no way to edit that I can tell.
Actually, you answered correctly, just as the poll was designed. Thank you!
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Old 10-01-2016, 10:22 AM   #153
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It seems to have been designed for those that lean towards the pedantic, IMO.
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Old 10-01-2016, 10:35 AM   #154
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I disagree. At the party, he/she would be over in the corner splitting hairs with me and (assuming he/she is not too serious/earnest about everything) we would be enjoying ourselves.

I like hearing outlier points of view when they have logic to back them up.
+1.

Also, much can be said about this forum, but not that we have too many average people here.
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Old 10-01-2016, 10:37 AM   #155
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It seems to have been designed for those that lean towards the pedantic, IMO.
I was a scientific researcher before RE. Precision is important.
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Old 10-01-2016, 11:05 AM   #156
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Originally Posted by exnavynuke View Post
If you moved here, you could buy a nice 4/3 house on 1/4+ acre for $210k (paid with current equity) and change your situation to 110K student loans and 450k assets in accounts..... COL matters
My guess is that my income would take a serious hit as well! But I do expect we'll move to a LCOL area if/when we RE.
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Old 10-01-2016, 04:55 PM   #157
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Also, much can be said about this forum, but not that we have too many average people here.
It has been said that the 'average person' has one testicle and one breast.
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Old 10-01-2016, 08:34 PM   #158
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This poll has now closed. There was a good response to this study, with 292 participants. The results show that over 51% of respondents indicated that they had no debt. Their posts make clear that many of this group do in fact have short term credit card debt, meaning that the true percentage without "any debt whatsoever" is smaller. The cumulative percentage of this "no debt" group and those reporting a debt to asset ratio of <10% is close to 85%. The curve is significantly skewed to the left. My impression is that the majority of the respondents, at least those who participated in the (lively) discussion, were already retired.

I had not anticipated a normal distribution, but I had thought the skew would be less pronounced, based on the never ending discussions about paying off mortgages in retirement. One poster indicated that the categories should have increased by 5% rather than 10%. To implement such a study design would have required many more categories, which would have made the study more difficult to interpret with a small dataset, or a lower cutoff, which would have masked the fact that a small minority of respondents have a debt to asset ratio of >40%.

The results are informative and I thank everyone who participated. Mods, please close this thread when you feel it appropriate.
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