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m4a1mustang · 07-18-2009, 09:34 PM

That's a very foolish proposition. You end up putting yourself in a dangerous situation due to the amount of risk you have to take on in order to achieve an annualized return of 12% or greater to beat the loan's interest rate and could find yourself losing your money with one bad trade. Those of us in the business learn pretty quickly that no one is bigger than the market -- so don't think it's definitive that you're going to end up in the good.

You seem to be indicating that you make good money, and that you have the money on hand to buy what you wish. If that's the case, just buy it outright. Then you don't have to worry about getting burned trying to out-earn what you're spending on the borrowed money. It's just not worth it.

07-18-2009, 09:34 PM	#29 (permalink)
m4a1mustang A True Z Fanatic Join Date: Feb 2009 Location: Northern VA Posts: 55,385 Drives: on two wheels Rep Power: 6962	That's a very foolish proposition. You end up putting yourself in a dangerous situation due to the amount of risk you have to take on in order to achieve an annualized return of 12% or greater to beat the loan's interest rate and could find yourself losing your money with one bad trade. Those of us in the business learn pretty quickly that no one is bigger than the market -- so don't think it's definitive that you're going to end up in the good. You seem to be indicating that you make good money, and that you have the money on hand to buy what you wish. If that's the case, just buy it outright. Then you don't have to worry about getting burned trying to out-earn what you're spending on the borrowed money. It's just not worth it. __________________ - Steve Zs & Coffee - Saturdays at 10AM in Fairfax, VA and Columbia, MD (Click the banner!) LIKE us on Facebook!