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How many people actually do that? No one I know of talks about taking a loan for something they would have paid cash for, then turning around and putting the ca
by theandrewbailey 5y ago
How many people actually do that? No one I know of talks about taking a loan for something they would have paid cash for, then turning around and putting the cash into their Robinhood/Fidelity/Schwab/etc. account. In fact, I haven't even read stories of people doing that, despite all this "advice".
- turtlebits 5y agoDepends on the interest rate. When rates are low, borrowing money and having liquid assets can be a better choice (ie. putting the money into an index fund)
- toomuchtodo 5y agoThere is a level of financial means and sophistication that is required admittedly.
- anotherman554 5y agoAll of these people saying "take a loan and you'll make money in the stock market" are wrong. You can't "make money" in stocks, from the perspective of choosing whether to take a loan, you can only "expect to make money". That's a huge difference. And a number of experts say you shouldn't invest in stocks if you need the money in the next 5 years, so that's another strike against this advise.
- SketchySeaBeast 5y agoI think the last few years have given people false confidence about the market. Sure the trend generally goes up, but if your loan came due in March 2020 that money wouldn't have been there.
- deleted 5y ago[deleted]