Is Debt Always Bad? by Jason Wood, Esq.

by Jason Wood, Esq.

• Satisfy debt. Using disposable income, “overpay” on debt obligations to pay down debt over a shorter period of time. Have you ever seen what paying $1,000 more a month toward a loan does to your loan payments? It significantly reduces the total time of your loan, meaning you end up paying significantly less in interest than you would otherwise.
• Start investing. What you choose to do here is up to you, depending upon your risk tolerance. However, if I may be so bold… be “wisely” aggressive. Your yearly income provides you with the ability to be more aggressive than most because you are satisfying your obligations through your business income, which is relatively future-proof. In other words, you can “bank” on making the same amount of money next year, which allows you to invest at a higher risk level than others, but be smart about it.

Jason Wood, Esq., is a partner in the law firm of Wood & Delgado, and has been with the firm since 2004. He is a graduate of San Diego State University and the University of San Diego School of Law. Wood’s primary emphasis is on business transactions for dentists and doctors: leases, purchase agreements, partnership agreements, shareholders agreements, corporations, associate agreements and other business-related legal needs.
Wood is a member of Dentaltown’s editorial advisory board and a frequent contributor to Dentaltown’s online message board forums. Before joining Wood & Delgado, he worked in Washington, D.C., in connection with presidential and U.S. Congressional campaigns and for the U.S. House of Representatives, drafting legislation for various House committees.