big one February 5, 2012 at 11:47 am

I would say..Don’t Do It !!! By taking a loan, you are already down the interest you will have to pay back. And if the market goes flat and you take losses, then you will being paying back a loan for nothing. Never invest on a loan.

I know you don’t want to hear that, but it makes no finacial sense at all. Get a second job and invest your earnings. If you have a 401 K plan at work and it matches your contributions, use that first (that’s a 100% return right there) there are plenty of ways to do this without taking a loan.

InvisibleWar February 5, 2012 at 12:25 pm

Take out a home equity line of credit. If it costs you 7% and you can make 15%, then you are ahead 8%. Just tell the bank you want to make home improvements. Then, just write checks to yourself and forward the money to your brokeage account.

JSan521704 February 5, 2012 at 1:22 pm

It’s called buying and selling on Margin but it’s quite risky.

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