Bruddah IZ
DA
Blind Econ-spola leading the blind Husker Du as usual. You never did answer the question about whether you have a reverse mortgage or not. So much for your nuances. Let me know when your bank starts paying your mortgage.
Essential Economics for Politicians
- Thread starter Bruddah IZ
- Start date
-
- Tags
- finance too
Hüsker Dü
DA
Not really interested watching you twist and turn in some vain attempt to act like you know something others don't . . . these issues aren't mysterious. Maybe try to convince yourself you are a great musician and singer?
Sheriff Joe
DA
He's a legend.
Bruddah IZ
DA
Do either of you have a reverse mortgage? If so, you have an asset. If not, you have a liability/expense. No mysteries. A little nuance maybe, but no mystery.
He has symptoms similar to people I know who paid several hundred dollars for a financial seminar that embedded kooky ideas about money, economics, THE FED IS MURDER!!!, etc.
So it was a reverse mortgage seminar that cooked your brain?
Bruddah IZ
DA
Nah, I was just trying to make yours and Husker Du's definition of an asset fit the actual definition of an asset and not the definition of net worth. Ever play monopoly? Were you the guy giving money to players that landed on your property?
Bruddah IZ
DA
Those seminars don't cost money tootse. The only kooky ideas I hear about economics and finance is that which comes from you, Husker, Wez, and Andy. Andy and Wez tend to be more Macroecon while you and Husker are more microeconomics.
Read the Monopoly "selling property" rule.
Bruddah IZ
DA
Am I to assume that you read the rule yourself? Please continue.
Hüsker Dü
DA
Just looking to argue something, eh?
Bruddah IZ
DA
Do you have a reverse mortgage?
Hüsker Dü
DA
First of all B, there seems to be a little confusion about the word asset. I've posted it down below, and no it isn't qualified by if it puts money in your pocket...
Anyway sounds like you're reading Read Rich Dad Poor Dad Bruddah. Bruddah you understand the authors not really saying a house isn't an asset, but that you need to change about how you think of your house if you want to be a rich dad?
as·set
ˈaset/
noun
- a useful or valuable thing, person, or quality.
"quick reflexes were his chief asset"
synonyms: benefit, advantage, blessing, good point, strong point, selling point, strength, forte, virtue, recommendation, attraction, resource, boon, merit, bonus, plus, pro
"he sees his age as an asset"- property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
"growth in net assets"
synonyms: property, resources, estate, holdings, possessions, effects, goods, valuables, belongings, chattels
"the seizure of all their assets" - military equipment, such as planes, ships, communications and radar installations, employed or targeted in military operations.
- property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Why would you think a 40-50 has a reverse mortgage. lol The banks wouldn't even sell a reverse mortgage to a 50 year old? Don't get me wrong, I think it's great you discovered a new word. But yo, asking middle aged soccer parents how many have a reverse mortgage makes it seems like you still don't quite have your head around your new word.
An equity line of credit from which you draw money from regularly is very similar to a reverse mortgage, especially if you are using it to make mortgage payments. An obvious difference is that there is no government involvement in guaranteeing or encouraging the loan.
Bruddah IZ
DA
Good. So you weren't paying your fellow monopoly players money every time they landed on your properties but instead they paid you every time they landed on your properties.
Bruddah IZ
DA
A HELOC and reverse mortgage are not similar at all. Key word, reverse. Notice which way the cash flows for each. I can't make it any easier than the monopoly example. The obvi diff for not needing a guarantee on a reverse mortgage is that the house itself is the guarantee.
Bruddah IZ
DA
Actually I was entertaining Huskers new love affair with the word nuanced by providing a real world example of how a home can be a cash flowing asset to you IAW with the definition you provided. Otherwise your mortgage is an asset for the lender only. Most people miss these concepts despite having played monopoly from a young age.
Bruddah IZ
DA
There always is. Especially when you miss the historical context of the conversation.