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"why would the wealthy individuals in Stanley and Edelman's books choose to carry a mortgage even when they can easily pay it off?"

Let's look at the facts in Stanley's the Millionaire Mind.

First, the table 8-8, p355 Average Value of Homes by Networth

Networth///// Av Networth//// HouseValue
1Mil to 2.5Mil ////1,470,533//// 220,796
2.5 to 5mil ////3,392,416 ////354,043
5 to 10 mil//// 6809,409 ////545,499
10 mil to 20m ////14,045,501 ////779,444

all 1 mil or more ///2,938,515/// 277,640

Note that the average multi-millionaire, according to Stanley, lived in a house that was less than 10% of his net worth!!!!!!!!!!!

FOr those just over the million dollar level, they lived in average 220,000 house, with ave net worth of 1.47 mil, or about 15% of their net worth!......

For thos in their 40s and 50s, with a net worth of 500,000, that would mean they should be living in a house worth 75,000 bucks.

If their net worth is only 300,000, then in a house worth 45,000 bucks...

If they have negative net worth, then obviously they aren't going to be in Stanley's next book!!!
_____________________________________________________

Table 8-5
Outstanding Mortgage balance , sample size 733

Size of unpaid mortgage ////%of Mil ////cum%

No mortgage//// 39.9% ///39.9%
<100,000 /////10.2% /////50.1
100-299K /////15.9 /////66
300-499K ///13//// 79%
500-999K ///16.3 ///95.3
>1mil/// 4.7 ////100

Thus, 40 percent have NO mortgage, clearly a major disagreement with the conjecture millionaires carry mortgages.

Secondly, over half have mortgages of less than half the vaule of their houses, and most people have been in their current houses for >10 years.

No, I disagree with any claims that millionaires buy 'lots of house' and then finance them up to the hilt.....the opposite is true...they buy houses way below their means, and don't carry a lot of debt.

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