No. of Recommendations: 0
IF I understand the issue properly mid thread, perhaps Dave is referring to Alternative Value of funds. Any time we look at making a purchase, we look at what we are giving up in terms of alternative value.
No, unfortunately that's not how Dave is using it.


Actually, yes, that's precisely the proper useage. IP got 1st rec from me, and I'm pleased to see one of the few regulars here actually on top of full financial comprehension.

It's really nothing more than an understanding of the time value of money, and the fact that every unit of money is charged with some amount of that time value... Moving money from a higher benefit location/account to a lower benefit location/account is a negative to net worth, and vice versa.

It makes no difference what you want to call the money transfer... borrowing, allocating, whatever. The terminology doesn't affect the math.

The money that matters in this issue is the discretionary income that remains after basic survival costs have been covered. Doesn't matter what accounts, strategies or financial products are being entertained, the principles are the same regardless.

As for 'credibility'... I'm not seeing any other non-anonymous, licensed, vetted & back-checkable financial professionals in this thread (nor others around these parts) bringing any higher credibility in this than me. Tossing 'credibility' mud at the highest standard bearer on the board is rather funny, on you that is. My 4 y.o. son throws similar attacks from time to time... but no worries, I don't judge you any more than I judge him for such tantrums.

Dave Donhoff
Leverage Planner
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