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
Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.