Comments on: Book Review & Giveaway: Killing Sacred Cows

By: Greg

Greg — Sun, 07 Dec 2008 02:40:01 +0000

As a Christian I find #8 the toughest ‘myth’ to let go of. Proverbs 22:7 tells us when we are in debt, we are slaves to the one we owe. Not having any payments except for my mortgage, allows me to do a lot of things for others without any guilt.

By: E.C.

E.C. — Sat, 06 Dec 2008 03:31:31 +0000

I’m quite curious to see what alternative the author proposes to socking away money for retirement. If I’m not in it for the long haul at 22, what exactly should I be doing?

By: David

David — Thu, 04 Dec 2008 11:57:43 +0000

I disagree with #8. While I do realize that debt can be “useful” for lack of a better word, it’s almost always the worst method to use. Zero debt allows anyone the most financial freedom in life. If you don’t have debt, you are free to use your money as you see fit, whether that be investment, savings, helping out relatives/charities, or whatever. If you have no debt, you also have more time to find new employment if your job disappears or if you simply want a change of career or employer. Your emergency fund will last much longer if it need only be used for necesseties (food, shelter, utilities) rather than Mastercard, Visa, etc. Debt means that the money you work for is never really yours–it’s already gone before you ever see the cash. Yes, you agreed to that, but it’s rather like volunteering for indentured servanthood. Who in the world has happier life doing that? Life isn’t all about money. Debt-free living enriches your quality of life immeasurably, because you not only have financial freedom with money that is yours, but your stress level is greatly reduced. Worry robs joy from life. There are many reasons we can worry, but (other than debt from a catastrophic event) you can eliminate the worry of debt, if you choose to do so.

By: Ladam8518

Ladam8518 — Wed, 03 Dec 2008 18:49:54 +0000

#3 would be the most difficult. I am an engineer and everything is about the numbers.

By: Jane

Jane — Wed, 03 Dec 2008 17:31:56 +0000

The comments on debt seem to be no more than a form of mental accounting. Consider an example: One person is all about “bad debt” and buys $100,000 of consumer goods on credit and invests her savings of $100,000 in rental real estate. The other is all about “good debt” and pays cash for $100,000 of consumer goods and borrows $100,000 to invest in rental real estate. They both have exactly the same consumer possessions, the same investment properties and the same levels of debt and net worth. What’s the difference? Mental accounting can be useful, but this time it seems like no more than an empty trick.

Also, I really have a hard time with the author’s take on tax advantaged retirement savings accounts. If he had stressed that these transmute (lower taxed) dividends and capital gains into (higher taxed) ordinary income I could understand, but the author’s website at

http://www.401khoax.com/

rejects the very idea of retirement savings in the ordinary sense. Yes, some people can pull off a better retirement strategy, but for the vast majority of us IRAs and 401(k)s seem the most viable options available.

In the wake of the disappearance of defined benefit pension plans and every politician seeming ever so eager to carve away at Social Security and Medicare, those of us unwilling to follow the “Rich Dad” path *need* those options.

By: Wess Stewart

Wess Stewart — Wed, 03 Dec 2008 16:12:58 +0000

I’d have to say #8 is my hang-up. I realize that not all debt is bad, but for someone like me who just doesn’t ever seem to make enough money to pay all of the bills on time, the more debt that I find, the worse off I am.

The kicker? I’ve only had about 3000 in debt for the last 7 years. That’s it. But my credit is bad, we keep owing money to people who aren’t technically ‘creditors’ (i.e., family), and nothing is getting any better. Well, not yet anyway. And now, someone has taken out a big loan using my social, so I’m kind of screwed. Heh.

Ack. I’m ranting…lol.

By: Emily@remodelingthislife.com

Emily@remodelingthislife.com — Tue, 02 Dec 2008 21:07:00 +0000

Sounds like an interesting book! I would have a hard time letting go of #2 and #8. I am all about socking it away and avoiding debt :)

By: Peter Anderson

Peter Anderson — Tue, 02 Dec 2008 15:21:18 +0000

Great review, I think we all hold, or have held, some of these myths to be true. The insurance one was one that i had flirted with – until earlier this year when we had 250k in hospital bills. That bust ed that myth really quick for us.

Another one that i had probably held in the past was the “money is a finite resource” one. After reading another book – i realized how silly that myth is. Wealth/money is created, and as long as you hold initiative and drive, you can create more! Your success isn’t dependent on someone else having less or vice versa!

By: Morp

Morp — Tue, 02 Dec 2008 07:34:21 +0000

I would really like to read this book. It sounds quite interesting. Myth #7 would be my hardest to let go. I’m all for self insurance (depending on what is trying to be self insured). Thanks for the giveaway!

By: PT

PT — Tue, 02 Dec 2008 02:49:50 +0000

Great review. I’m currently reading this book. The premise looked great. I’m excited to dig into it a bit more and get to the meat of it. Thumbed.