One of the benefits of attending the Air Force Academy is that I can get a $35,000 loan from the government at a very low rate of interest (less than 1.5%) at the end of my junior year. At that time I will be 21 years old.
Should I take the loan and invest it aggressively? The interest rate is lower than the historic rate of inflation, so the odds are good that I will make money on the deal.
However, I am leery of investing borrowed money. There is no obligation to take the loan.
Is the opportunity to profit worth the risk?
Please explain what you would do, and why.
06-04-2013 05:56 PM
Thinning87
Quote:
Originally Posted by TheLaughingCow
One of the benefits of attending the Air Force Academy is that I can get a $35,000 loan from the government at a very low rate of interest (less than 1.5%) at the end of my junior year. At that time I will be 21 years old.
Should I take the loan and invest it aggressively? The interest rate is lower than the historic rate of inflation, so the odds are good that I will make money on the deal.
However, I am leery of investing borrowed money. There is no obligation to take the loan.
Is the opportunity to profit worth the risk?
Please explain what you would do, and why.
Well mathematically it makes a lot of sense, but first of all you need to figure out what you'd want to invest the money in.
Obviously you need to make sure your rate of return on the investment is higher than the 1.5% you're paying... and I'm sure you knew that.
That is very low. I would try to invest in a very diversified, safe portfolio. The market is doing ok so even investing in a index is ok I would say.
How far away in time is Junior year? In other words when do you need to pay it back?
If possible I would try to borrow 5K to start with and then if it goes well try borrowing more, why not.
06-04-2013 05:57 PM
Thinning87
But do make sure you know what you want to invest in before doing anything, which means figuring out a target rate of return on your money and an acceptable level of risk you want to take.
06-06-2013 03:35 PM
Diesel15
In general this sounds like a bad idea to me. While I can understand the logic behind it, you're drastically increasing the amount of risk that you are exposing yourself to with a strategy like this. Investing $20,000 that you have is much different than investing $20,000 that you borrowed. Unless you are confident on a high rate of return over an extended period you are asking for trouble here. Keep in mind also that you need to make payments on this loan over its life so you are also increasing your expenses in the hope of making money on a non-guaranteed investment. Right now, a retarded monkey could blindly invest in the stock market and do better than 1.5% but I don't feel like this will continue much longer. Even if you return 10% on this money, your upside profit is only $2,000 minus the interest and your liability is the full $20,000. That doesn't sound like a good deal to me personally. It really boils down to how confident you are that you can significantly outperform the loan rate and how much risk you are willing to accept.
'm not an expert, but I know a little about balconies and loggias. I'm not an expert, but I know a little about balconies and loggias. I'm not sure, but it seems to me that giving away money to any company, be it a bank or a private company, in any case comes to get some percentage of your money, and if you don't want to live on a mattress with dollars, you will pay to a reliable Swiss bank a certain amount of money, besides, in case of delay, you haven't the most favorable conditions.
03-27-2021 12:44 AM
billu7
I think that I can help you with this stuff. If you are looking for some loan services then you definitely need to have a glance at this site here on Instant-Cash-Advance because they are the best company in this sphere. I have already used their service and I may definitely tell you all that you all need to check it.
06-04-2021 02:44 AM
Niticognen
I have researched loan deals for a long time before finding a company that offers what I need. If you're talking about cryptocurrency, then some tips when it comes to Forex would be: knowing the market(you have to educate yourself), sticking to a plan, knowing your limits(knowing how much you're willing to risk on each trade) and not being afraid to take risks. I hope this is what you wanted when you said loans, but if you're talking about smth more practical, such as house loans, I would recommend Fairway Independent Mortgage. They have helped buy my current house(which I got from Forex money btw).
09-12-2022 02:43 PM
endamarrie
Quote:
Originally Posted by TheLaughingCow
One of the benefits of attending the Air Force Academy is that I can get a $35,000 loan from the government at a very low rate of interest (less than 1.5%) at the end of my junior year. At that time I will be 21 years old.
Should I take the loan and invest it aggressively? The interest rate is lower than the historic rate of inflation, so the odds are good that I will make money on the deal.
However, I am leery of investing borrowed money. There is no obligation to take the loan.
Is the opportunity to profit worth the risk?
Please explain what you would do, and why.
Yes, it's good if you want to get a loan for your business or other prospective. And I suggest you contact any loan consultant. A loan company or consultant will guide you according to the loan policy.
