Debt's not investment's foe, returns dance high and low. Bonds can beat stocks in a race, context guides the chosen pace. So weigh your goals, assess the risk, then pick the path that brings your bliss.
It depends. The statement "Depts are an investment issue, since income on debt is not likely to be higher that investment earnings" is somewhat misleading and requires context to determine its accuracy. Here's why:
Debt isn't an investment: Debt signifies a loan with an obligation to repay. Investments, on the other hand, aim to generate profit or income over time. While some debt instruments like bonds can function as investments, debt itself isn't an investment category.
Debt income can be higher than investment earnings: Depending on the specific types of debt and investments, debt income can actually be higher than investment earnings. For example, high-yield corporate bonds might offer higher interest rates than some safer investments like government bonds.
Therefore, the statement in its current form is false. A more accurate way to phrase it would be:
The income earned from holding debt instruments may not always be higher than the potential returns from various investments.
It's important to consider the specific types of debt and investments when comparing their income potential.
Ultimately, whether or not having debt affects your investment options depends on various factors like the amount of debt, your financial goals, and risk tolerance. Consulting a financial advisor for personalized advice would be the best course of action.