Should You Invest With Borrowed Money?

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  • čas přidán 29. 07. 2024
  • Investing with borrowed money can enhanced your returns when your investments do well. But, getting into debt to invest can also magnify your losses, dramatically increases your risk. Proper investing is about weighing the risk versus the potential reward, so is adding borrowed money to your investment portfolio a good way to jump start your progress? This video explores the risks and rewards of using leverage.
    Read the article:
    www.smartzonefinance.com/debt...
    Visit the blog:
    www.smartzonefinance.com/

Komentáře • 48

  • @georgerobinson2021
    @georgerobinson2021 Před rokem +270

    I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!
    Very inspiring! I love this.

    • @harrisonjamie794
      @harrisonjamie794 Před rokem

      I understand that tomorrow isn't promised to anyone, but investing today is hard for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.?

    • @georgerobinson2021
      @georgerobinson2021 Před rokem

      @@harrisonjamie794 I invest across the top markets but not by myself though. I follow the guidelines of *PRISCILLA DIANE AIVAZIAN* . you might have heard of her. I can correctly say she's worth her salt as an investment advisor as her diversification skills is top-notch, I say this because I see that in her results as my portfolio grows by averages of 20 to 3O% every month, unlike I can say for my IRA which has just been trudging along. my portfolio just mirrors what she places and not just on some particular industries of my choosing. she gave me that financial freedom I needed

    • @harrisonjamie794
      @harrisonjamie794 Před rokem

      @@georgerobinson2021 Oh, that sounds good but how do I reach out to PRISCILLA DIANE AIVAZIAN?

    • @georgerobinson2021
      @georgerobinson2021 Před rokem

      @@harrisonjamie794 look her up on the internet with her name. she's quite popular for her services as she was recently featured on
      CNN. She can work with anyone irrespective of where you're located

    • @harrisonjamie794
      @harrisonjamie794 Před rokem

      @@georgerobinson2021 Thank you so much! Found her webpage and left a message. Hopefully, she responds.

  • @TheChallenger1000
    @TheChallenger1000 Před 3 lety +11

    Didn't Warren Buffett borrow money to invest and make his early fortunes? Hmmmmm...

    • @kjthomas4553
      @kjthomas4553 Před 3 lety +2

      No

    • @TheChallenger1000
      @TheChallenger1000 Před 3 lety +1

      @@kjthomas4553
      "Warren Buffett doesn't think it's smart to use debt to buy stocks... Of course, some investors criticized this statement because Buffett's record was built on borrowed money."
      Source: www.fool.com/investing/2018/03/11/buffetts-warning-on-using-debt-to-invest-in-stocks.aspx

  • @spiffypickle
    @spiffypickle Před 3 lety +5

    This video came in clutch 🙌 thank you for the content.

  • @martinolsson858
    @martinolsson858 Před 2 lety +3

    It's impossible to talk about this topic with the common folks, even though there are risks, there is clearly an advantage.
    I have debt invested in Index funds, and large cap companies. I borrowed 60 000$ from a commercial bank at 3,95% interest. In my country i am also able to make a 30% deduction on that interest. Meaning i only pay roughly 3% in interest for that loan.
    Investing that money into my investment bank, allows me to take an additional loan for 2,1% (not deductable though) upto 50% of the funds/stocks i've invested in. So in total an investment of 90 000$
    The average return on the index funds i've invested in is 16,51% (but the whole market roughly 7%)
    It's been very profitable -- And i simply compare this to basically buying a home with debt (but i think it's less risky)
    I also make an additional deposit of 1 500$ per month into the funds -- Trying to mirror Buffets style of long time investing.

  • @topmanfrass5977
    @topmanfrass5977 Před rokem

    Did you take into consideration the mortgage payment in 1 yr and if u can afford it

  • @mas1158
    @mas1158 Před 2 lety +4

    I’ll just go ahead and say: the bank’s money is too cheap for me not to take it, and the opportunities are limitless. The only problem I’m having is that my country’s laws dont allow me to take out more than 60% of my salary in loans payment.

  • @pamelabeauty1980
    @pamelabeauty1980 Před 2 lety +11

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    • @pamelabeauty1980
      @pamelabeauty1980 Před 2 lety

      *Investing in crypto has been a wonderful experience for me i keep on earning every single week with her new strategy.*

    • @orikanjojames843
      @orikanjojames843 Před 2 lety

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      @adenikeayobami7232 Před 2 lety

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    • @daamodarabhat252
      @daamodarabhat252 Před 2 lety

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    • @daamodarabhat252
      @daamodarabhat252 Před 2 lety

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  • @JovannaSurillo
    @JovannaSurillo Před 2 lety

    Thank you for this!

  • @gfsdon5972
    @gfsdon5972 Před 3 lety

    Needed this💯

  • @princesteez5627
    @princesteez5627 Před 3 lety

    Hi, I would like to invest in a start up company with my company's "employee loan" money. Can you make a video about the pros and cons of this ideia?
    Since the loan its a great amount I dont want tge money to go to waste.

    • @ashmore118
      @ashmore118 Před 2 lety

      Chance of return from a startup is too low to use debt. Only use money you can afford to loose

  • @user-ly7rg3ll4o
    @user-ly7rg3ll4o Před 2 lety

    You lost me at the brokerage statement. Why do I find these things hard to learn..

  • @joshuafausto2904
    @joshuafausto2904 Před 4 lety +1

    Can i barrow money to start my online business please let me know how..

  • @junaidshah8200
    @junaidshah8200 Před 4 lety

    Very informative information bro.

  • @anthonychenglei6995
    @anthonychenglei6995 Před 3 lety

    hello

  • @BALLSLAPNIFICENT_
    @BALLSLAPNIFICENT_ Před 5 lety +4

    Pay attention Ice Poseidon