Sup /biz/, I need a sanity check on my idea to get even greedier.
>70k invested in market
>~15k more in assets including cash/car
>gross 45k/yr
I want to take out a large loan, like 100k, or as large as possible, and dump it into something like an index fund like pic related. I know the earliest money does the most good, and that's the idea here. With interest rates being so low I'm tempted.
Please talk me out of this or tell me to consider.
>>1943120
dump it into shitcoins
>>1943127
Thanks for the bump
that sounds pretty reasonable
I don't see why not, the stock market keeps going up
>>1943120
don't, you'll probably end up broke and killing yourself
gl though
>>1943120
If you can reinvest loan money to make more than the interest the lender makes, why wouldn't they do the same?
Think it through...
>+17.12% 1 Yr
Totally sustainable. You should go for 200k OP, you could pay off the loan in 7 months.
What if the market tanks the year you take the loan, and your late payments just keep compounding with interest, until your debt is huge and you have no other choice than to default and destroy your credit score?
>>1943244
Because they have different risk preferences and time horizons
>>1943279
>7.5% lifetime
>13.2% 5 years
This isn't your shitcoin memes or penny stocks kid. Mutual funds are a relatively safe investment
>taking out a loan
>for a shit investment
And ironically there is people on this board supporting this, most likely coiners. You don't invest money you don't have, don't be a fucking retard.
You'll either get mediocre returns or you will (since you are here talking about a loan) fuck yourself for life, pick one.
i would suggest a practice run of $10,000, and consider investing in a diversified dividend yielding portfolio yielding 8-12%, assuming your loan interest rate would be below 8%.
you'd get practice with "gearing"(borrowing money to invest), you'd build credit, and you'd generate passive, compounding income(assuming you invest with a DRIP)
If you decide to mortgage your investment portfolio you need to be prepared just in case you buy at the top of a bull market.
Bad idea but YOLO away if you want to.
>>1943120
I would only do this if I were depressed and ready to eat a shotgun.
There are many ways to tarnish a life, such as losing a limb, committing a serious crime, or doing drugs.
But this is one of the few ways to genuinely ruin yourself. You will be making payments on what's essentially a house, but not even be able to live in it. Don't do it. In the words of Jeb Bush "Slow and steady wins the race." But this time it won't be a Jeb surge, it'll be an Anon Surge.
Invest conservatively, and plan out a fiscally responsible budget. If you do that you'll take off faster than everything but today's trendy meme-coin.
>>1943295
>You don't invest money you don't have
Yes you can - there are plenty of firms that do this.
Unfortunately OP is probably not Henry Kravis so he'll probably be fucked if he does this
>>1943120
if you really want to get raped you can just go to prison, you know