JaMarcus Russell is on the verge of losing his mansion - Shutdown Corner - NFL* - Yahoo! Sports With Russell's poor self control(all you have to do is to look at how he ballooned up in weight), its not a shock that he was going to spend all his money. But, even this, is a bit faster than probably anybody expected. Where the hell did he spend all that money already?
His collection of "Bama Boy" necklaces probably ate up a mill or two. But this definitely happened faster than I expected. I don't think he got the full sixty did he? He definitely got $40 million or so and has only stopped pulling in checks in the last two years. Crazy.
Just can't understand why someone with that much bank wouldn't pay cash for a house. Why would you ever need to finance anything with that kind of dough?
I think it was somewhat discussed in other previous threads on Russell and the consensus was he probably wasn't making wise choices in terms of his financials. Not a surprise whatsoever, and not a surprise it has happened this soon.
you should always borrow when the interest rate is lower than you can make with your investments. smart rich people have great credit and they use it to grow their wealth.
Not sure I follow. Wouldn't it be less expensive to simply pay in cash, regardless of how low the interest rate is?
I think this works well in theory, but when you factor in risk and taxes your spread is so thin that it isn't even worth it. Your risk free rate by paying cash for the house is going to be something like 6%. That is pretty tough to beat these days.
