Taking out a loan to invest in bonds?

[RichardtheFrog]

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]

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]

I have come to realize this.

[Fulcrum]

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]

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.