Cash vs Loan: Deciphering the Tradeoffs | Episode 9

Complete Wealth Management With Dave Alison

In this episode of The Complete Wealth Management Podcast, join host Dave Alison, CFP, EA, alongside financial advisors and tax experts David Roth, CFP, EA, and Conrad Levesque, CFP, CPA as we dive deep into one of life's most crucial financial decisions. Should you pay cash or take out a loan for major purchases?
In this episode, we discuss:
👉The case for paying cash
👉The power of leverage with loans
👉The key factors that influence the decision between cash and loans
👉Real-life examples of clients who have faced this decision
👉Common misconceptions and mistakes people make when making these decisions
👉How Wealth Families Use Intra-Family Loans
Whether you're considering a home renovation, a new car, or any significant investment, this episode will help equip you with the knowledge to navigate these financial crossroads confidently. Tune in today and embark on a journey towards financial empowerment.
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The information provided in this presentation is not intended to be individual investment advice or legal advice. The information provided is for informational and training purposes only.
Investment advisory services are provided through Prosperity Capital Advisors LLC (“PCA”) an investment advisor registered with the United States Securities and Exchange Commission (SEC). For a detailed discussion of PCA and its investment advisory fees, see the firm’s Form ADV and Form CRS on file with the SEC at www.adviserinfo.sec.gov. The views expressed herein represent the opinions of PCA and are not intended to predict or depict performance of any particular investment.

Advisory services are provided through Prosperity Capital Advisors LLC (“PCA”) an investment advisor registered with the United States Securities and Exchange Commission (SEC). Views expressed herein represent the opinions of PCA and are not intended to predict or depict performance of any particular investment.
All data provided, including any reference to specific securities or sectors, is provided for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation, or recommendation to purchase any security. Consider your investment objectives, risks, charges and expenses before investing. These views are as of the date of this publication and are subject to change. Past performance is no guarantee of future performance.

Chapters

1. Deciphering The Tradeoffs of Cash vs Loan (00:00:00)

2. The Why Behind Your Expenditure (00:04:08)

3. The Need to Finance & Your Time Horizon (00:09:14)

4. The Case For Paying Cash (00:12:59)

5. Buying an Asset vs Liability? (00:14:46)

6. Using Cash and Paying Yourself Back (00:16:14)

7. The Power of Leverage with Loans (00:19:26)

8. The Business Impact of Using Loans: Rental Properties (00:22:35)

9. The Opportunity for Arbitrage (00:25:08)

10. Using Loans to Maintain Liquidity (00:28:00)

11. Having Options For Loans (00:28:58)

12. Assessing Your Borrowing Options and Loan Terms (00:30:55)

13. Borrowing From Yourself: Buy, Borrow & Die Concept (00:31:27)

14. Dave Alison Walks Through His Decision Process on a Recent Boat Purchase (00:33:50)

15. Taking a Loan Today and Refinancing Later (00:40:37)

16. Calculating The Cost of Liquidity (00:41:23)

17. Interest You Earn vs Interest You Pay (00:42:59)

18. How Wealth Families Use Intra-Family Loans (00:44:03)

19. Closing Thoughts on Cash vs Loan (00:47:57)