| Author |
Message
|
| paula0000 |
 Posted: Sun Feb 27, 2005 3:40 am Post subject: Would you.. |
 |
|
Investing Manager
|
| ..ever take out a loan to invest? |
|
| Back to top |
|
 |
| jeepgirl30 |
| Posted: Mon Feb 28, 2005 10:13 am Post subject: |
|
|
Investing Sr. Associate
|
no. it doesn't seem to make sense. you'd be paying interest to make money. If it were high risk you'd end up on the wrong side.
well wait, maybe take a loan to start a business. |
|
| Back to top |
|
|
| ammo |
| Posted: Mon Feb 28, 2005 11:18 am Post subject: |
|
|
Investing Sr. Associate
|
| No way its suicide, Unless you know it couldnt go wrong, but then no investing is really like that is it? |
|
| Back to top |
|
|
| trixiezzz |
| Posted: Tue Mar 01, 2005 11:18 am Post subject: |
|
|
Investing Manager
|
| No way, not even if it were a "sure thing". Because, there really are no sure things ~ except for the fact that the bank WILL come after you to collect on their loan. |
|
| Back to top |
|
|
| InvestingMac |
| Posted: Tue Mar 01, 2005 2:37 pm Post subject: |
|
|
Investing Manager
|
A dangerous move.
For the most part I would shy away from borrowing in a debt situation in hopes of investing out of it. The interest will really take away from any gains you make in slow growth or "safe" investment funds, which leaves any gains in the high risk area... which really isn't where you need to be when you're dealing with debt. |
|
| Back to top |
|
|
| keokagal |
| Posted: Wed Mar 09, 2005 11:27 am Post subject: |
|
|
Investing Sr. Associate
|
Would you take out a loan and go to Vega?  |
|
| Back to top |
|
|
| raven3517 |
| Posted: Sun Mar 13, 2005 2:58 am Post subject: Re: Would you.. |
|
|
Investing Associate
|
| paula0000 wrote: | | ..ever take out a loan to invest? |
If it was a 0% offer, and I knew I would be able to pay it all back before the 0% expired, then yes! |
|
| Back to top |
|
|
| keokagal |
| Posted: Sun Mar 13, 2005 4:32 pm Post subject: |
|
|
Investing Sr. Associate
|
| then you must know the secrets of winning at vegas. |
|
| Back to top |
|
|
| raven3517 |
| Posted: Tue Mar 15, 2005 5:01 am Post subject: |
|
|
Investing Associate
|
| keokagal wrote: | | then you must know the secrets of winning at vegas. |
Even if you put 0% in a savings account, you're going to make SOME money. No foresight needed for that  |
|
| Back to top |
|
|
| noksagt |
| Posted: Wed Mar 16, 2005 5:54 am Post subject: |
|
|
Member of the Month! March
|
| It doesn't need to be at 0%. If it is lower than CD or other cash interest rates, it would be a no-brainer. |
|
| Back to top |
|
|
|
|
 |
| thrilla |
| Posted: Wed Mar 16, 2005 7:35 pm Post subject: |
|
|
Investing Sr. Associate
|
Most of the attitude around here is pretty negative towards taking a loan out to invest, but I would like to examine the other side...which is leverage. While I would not suggest putting your house on the line for investing, having something like a margin account is not entirely a bad idea. The basic thought is like this:
If you have an investment that doubles in a year and you invested $10,000, you will have $20,000 at the end. The return is 100%
If you have a margin account and invested $10,000 of your own money and another $10,000 on margin. You will have $40,000 at the end. If the effective interest rate is 10%, you must pay back $11,000 by the end of the year. That leaves $29,000. With just a cash investment of $10,000, you made a 190% return.
Of course this hurts more the other way also. The point of this however, is leverage. If you do not have the cash on hand to make a good investment, sometimes using credit can be extremely beneficial and profitable. If an investor is careful and knows what he/she is doing, they can minimize the risks. |
|
| Back to top |
|
|
| noksagt |
| Posted: Thu Mar 17, 2005 7:20 am Post subject: |
|
|
Member of the Month! March
|
| I agree that leverage is powerful, but the key point that you need to make sure your rate of return is larger than your rate to borrow cash still stands. Most margin investors I've seen who got burned didn't get burn because their investment sank, but because it didn't raise enough. |
|
| Back to top |
|
|
| nemesis |
| Posted: Tue Mar 29, 2005 4:51 pm Post subject: hey |
|
|
Member of the Month! March
|
hey there,..
Uhm i'd really never ever take a loan to invest, cuz if its scam or so id have to pay back with interest, dont think i will ever recover from that... |
|
| Back to top |
|
|
| trixiezzz |
| Posted: Tue Mar 29, 2005 5:37 pm Post subject: |
|
|
Investing Manager
|
| Well I can see how it could be very profitable. My only requirements would be that you could afford to lose every cent of that investment if it turned sour and walk away without being hurt. Otherwise it's a house of cards and I wouldn't be willing to take on that much risk. |
|
| Back to top |
|
|
|
|
stock market game on the web. At eInvesting you compete for monthly cash prizes while you interact, make virtual dollars, purchase items, and trade in the realistic stock market simulator. We make investing FUN!
