The dangers of borrowing to invest

Why borrowing to invest is a bad idea

August 28, 2009
Borrowing to invest is a bad idea

Borrowing to invest in stocks looks like a good idea but is a really bad one. This special week-long series will try to explain why.

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Borrowing to invest is expensive

September 1, 2009
Debt is expensive

The cost of servicing a loan will eat up most of the returns you’re likely to make from borrowing to invest.

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Tax and costs will eat up returns

September 4, 2009
Tax eats your returns

Borrowing to invest is unlikely to be very profitable once you take into account tax on your returns.

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You can’t bank on an expected return

September 10, 2009
Borrowing and expected returns

Banking on the stock market to deliver any precise return is risky, even over 20 years.

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The risks of buying mark to market investments on margin

July 13, 2010

If you’re going to risk borrowing to invest in volatile assets, you need long-term debt to do it.

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Why it’s almost always a bad time to borrow to invest

November 18, 2010
A good time to borrow to invest?

If you want to borrow to invest, you probably shouldn’t – by definition it’s likely to be a bad time to do so.

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