Borrowing to invest can boost your returns, but it comes with big risks…
borrowing
If you want to borrow to invest, you probably shouldn’t – by definition it’s likely to be a bad time to do so.
If you’re going to risk borrowing to invest in volatile assets, you need long-term debt to do it.
Banking on the stock market to deliver any precise return is risky, even over 20 years.
Borrowing to invest is unlikely to be very profitable once you take into account tax on your returns.
The cost of servicing a loan will eat up most of the returns you’re likely to make from borrowing to invest.
Buy something on a credit card, pay off the minimum amount per month, and you’ll actually pay for it twice. Here’s the maths.
The only good debt is debt you take on for investment. Unless you run your own business, that begins and ends with an affordable mortgage to buy property. Get out of debt of any other kind, as soon as you can. Pay it off! Kill it dead! Borrowing to invest in shares is too risky. [...]