Hi guys, On a more serious note, now, have you tried borrowing money and investing it in rather secure investment funds? I mean you borrow at 3% and place your money at 5% for instance. This way you make 2% benefit off of money that isn't yours and the investment is secure. It's an example. You could borrow a lot of money and reinvest the earnings to the mix like in the stock but with a secure investment, nothing that guarantees 50% and in the end you lose everything Have you done it? Tell your story
Doesn't work like that afraid. You need assets. Pay tax which is taken from source. Most people are lucky to get a 10K unsecured loan, and loans are normally done at a fixed rate over say 5 years front loaded so the interest is added day one. A variable rate is fairer but generally you need a 30 K balance. Be lucky to make £100 on a 10 K loan after tax Sorry. Nice idea though. There used to be a bank that allowed you personally to lend money to strangers though
Yes, exactly, but £100 out of money that isn't yours is pretty neat Your assets: can be a car, a house, an appartment, etc... I prefer fixed rates. Less risky.
I don't think you will be able to borrow money unsecured for 3%. I must talked to the bank today about increasing my home equity line of credit which is secured, and the promotional rate for 4 months is 4.99%, then goes to 6.99%. You should still be able to outperform that in the stock market, but that is not a risk free proposition. I would not want to put my house at risk for something like that.
playing too much safe wont fetch you returns......stock offer attractive return but fought with increased risk.....gauge ur risk appetite and go for the suiatable asset.
1) Where the heck are you going to get someone to lend you money at 3%? 2) You have to pay taxes on your profits if you make any Anyway, you've described how banks work, if anyone here has started a bank then I suppose they can tell you their story.
As I said in my first message: This is if and only if you declare your profits. You don't have to do it in your own country, you can do it in fiscal paradises and send the money back to you Exactly!
I reckon it is not worth the effort, rather invest the money into a promosing startup company, but always to thorough research.