PDA

View Full Version : Taking out a loan to invest in bonds?



RichardtheFrog
10-20-2014, 12:17 AM
Someone on this forum suggested that I invest in bonds instead of real estate. I did the math and it makes sense. However, that would require cash that I don't have.

Is there any way to take out a loan to invest in bonds?

I think a personal loan would have an interest rate that would make it not worth it.

nealrm
10-20-2014, 01:30 PM
Taking out loans to invest is a good way to end up bankrupt. It is really hard to incorporate risk into the numbers correctly. Even when done correctly, it still amounts to gambling instead investing.

RichardtheFrog
10-20-2014, 06:01 PM
I have come to realize this.

Fulcrum
10-20-2014, 08:10 PM
Unless you can afford to lose both the principle (principal?) and the ongoing interest payments, do not do this. I did this in late 2006/early 2007 and within months I owed over double what the investment was worth.

RichardtheFrog
10-20-2014, 10:06 PM
And I think the only loan I could get would be a personal loan at 10-12%. That's not going to help me too much.