Comments on: Pay down debt or invest http://www.bripblap.com/2007/pay-down-debt-or-invest/ wealth, work and life success Tue, 16 Mar 2010 19:12:01 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Enough Wealth http://www.bripblap.com/2007/pay-down-debt-or-invest/comment-page-1/#comment-2 Enough Wealth Sat, 30 Jun 2007 08:49:27 +0000 http://www.bripblap.com/?p=25#comment-2 I have both margin loans and a home equity loan that have been used to invest in the stock market. Has worked out OK so far for me. Looking at historic data going back 50 years or more, there's a good chance that over any five-year investment time frame the average cost of borrowing (1-2% above the cash rate) will be less than the total return (dividends plus capital gains) of a diversified stock market investment. Of course there's not guarantee that you won't lose money borrowing to invest, but it is valid technique for boosting your returns. Regards http://enoughwealth.com I have both margin loans and a home equity loan that have been used to invest in the stock market. Has worked out OK so far for me.

Looking at historic data going back 50 years or more, there’s a good chance that over any five-year investment time frame the average cost of borrowing (1-2% above the cash rate) will be less than the total return (dividends plus capital gains) of a diversified stock market investment. Of course there’s not guarantee that you won’t lose money borrowing to invest, but it is valid technique for boosting your returns.

Regards
http://enoughwealth.com

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