Using loans for stocks, mutual funds

[MadmanParticipant 772]

Pay off your debt first before you start investing. Dont take on more debt to do so. Thats defeating the purpose.
If you have no debt, then save the money then but the shares. Never buy on margin either, its exactly the same as using a loan to buy shares. People that buy on margin are the ones that jump off of roofs when the market corrects.

[Anonymous 29]

Teddy wrote:

How do you guys feel about taking out a 20k loan to put into an investment account (bonds, funds, stocks). Obviously, the person would pay the accumulated interest and the principal while the investment account is earning returns.

The only relatively safe stocks would be in hedge funds directly associated with Super Funds.
Saying that, I do think that even the best of Super Funds will be under severe taxation pressure within a decade.

There is always a good chance of markets tumbling down over a longish period which may do more damage
especially if Super Fund is associated with any derivative stocks.

just my thoughts . . .

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