Borrowing to invest in ETFs and stocks - what are people’s experiences? How much did you loan and what was the payoff/loss?

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I have never borrowed to invest and don’t plan to.

If you are the same person asking whether you should have more than one fund and which is better VOO, VTI or VTSAX. You may want to slow down with the leverage

likefunny

Isn’t the rate of borrowing 6-7%? And risk free return is 5% in tbills. So if you are levering up to invest, you technically need the market to return 11-12% in order to get the same risk/return of a tbill. Not a good idea

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Also tax. Your profit is being taxed but your loan interest isn’t being forgiven.

Why would you borrow to invest in an ETF? Seems like little gain with that strategy…

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Step away from the borrowing talk. Never.

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I have taken a loan out from my portfolio to not have to cash out when market was down. Paid for down payment of house that way in 2020. I could probably get behind the math if we see a significant drop (still doesn’t make it smart). At least it would be more likely to return positive money for you.

Pretty unanimous on this one, thanks all

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