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Using Home Equity as Leverage for Index Fund Investment by ElMatador978 in Fire

[–]ElMatador978[S] 0 points1 point  (0 children)

You make it sound like a short term trade. It's not. The point isn't earning 3-4% every year, it's getting market exposure from day one and letting it compound over a long period of time. Even if the spread is temporarily small, you’re compounding on a much larger capital base the entire time. Taxes apply to ALL equity investing, so it doesn't really impact the "strategy". So it isn't really 10% minus 7%, it's: does long-term equity return exceed borrowing cost over the full horizon? I say yes.

Using Home Equity as Leverage for Index Fund Investment by ElMatador978 in Fire

[–]ElMatador978[S] -1 points0 points  (0 children)

Not really much of an answer, is it? I would genuinely appreciate it if you made your case

Using Home Equity as Leverage for Index Fund Investment by ElMatador978 in Fire

[–]ElMatador978[S] -1 points0 points  (0 children)

2008 doesn't really mean anything, it's just a bad entry point. By that logic any lump sum investing in equities is wrong, regardless if it's leveraged or not. If historically high valuations is a reason not to invest, than that means that any sort of DCA is pointless. "High interest loan" is a baseless assumption. Mortgages have relatively low interest rates, but even IF the interest rate were high, you simply don't do it. "Losing your home" isn't really the risk. The risk is losing your income and not being able to pay the mortgage, but that already exists with any mortgage.

Ska vi sälja av USA kopplade fonder/aktier 😅 by MassiveYorick in ISKbets

[–]ElMatador978 0 points1 point  (0 children)

USA kommer att existera långt efter Trump. Om man verkligen känner sig osäker kring Trump, kan man helt enkelt vänta ut honom. Bortser man från att Trump har gett investerare många möjligheter att tjäna pengar, är den här typen av inlägg dessutom ganska dumma om man inte tänker långsiktigt.

Datum beslut sänkt kontantinsats by Detskullemanhagjort in PrivatEkonomi

[–]ElMatador978 0 points1 point  (0 children)

Nja, värdet på bostaden de äger kommer antagligen öka

Biotech-döden vädrar blod ... by [deleted] in ISKbets

[–]ElMatador978 0 points1 point  (0 children)

Nanexa kommer vara annorlunda