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      10-04-2019, 01:48 PM   #33
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Originally Posted by 48Laws View Post
Most financial planners are corporate cogs who charge a nominal fee (irony) to “analyze” your finances while finding ways to upsell their programs, apps and monitoring services. Many of which are backed by credit card companies and banks. Most use the 25% rule because they know most people can’t figure out exactly what 25% of their GHI but they’re smart enough to know they’ll have access to 75% for other wasteful BS. The wisest planners, typically verified self-made millionaire would tell a person to avoid depreciating assets such as cars, boats etc (unless it’s a specific work-related vehicle) and to avoid a Mortgage (MORbid, MORTuary, rigor MORTis) unless it’s at least a two family dwelling , multi-unit, or investment property with low chances of vacancies. Single dwelling homes and cars generally a great way to hemorrhage your money.
I believe you are probably misreading my post. While I personally hold no debt of any kind and don't believe in debt of any kind - I understand that my way of life is not for everyone. As such, I was merely stating that his numbers were higher than they should be. I think you also misread my 25% number, which had nothing to do with debt, but had to do with total asset value. The total FMV of all your depreciating vehicle assets shouldn't exceed more than 25% of gross household income. So, if a single guy makes $70K per year, then he shouldn't buy a car that is worth more than $17,500.

FWIW - I am a CPA and well versed in personal finance.
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