Brad Lea Reaction | Bridger Pennington

I go buy a Range Rover for $130,000. I drive it for 3 or 4 years, it becomes worth $60,000. That is a depreciating item. If I would've taken that $130,000, invested it wisely at 10% interest, I would make $13,000 a year on that money, but the money would still be there and compound. But the $13,000 would afford the Range Rover. So instead of paying $130,000 for a Range Rover saying, hey, it's paid for free and clear, I could invest the $130,000, take the money that I'm from the investment and get a Range Rover for free. Or better yet, pass on the Range Rover, keep driving the shit car, let the $13,000 stack up, and in 10 years you got $300,000 doing the same.

I've debated this a lot. If there's a 30% dip in all asset classes, which we see every market cycle, can you cover that? And if you're well, okay, then great. If the market dropped 30% tomorrow and you're in a tough spot, then personally, I don't like being that levered.