My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?

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But the main thing is you have to trust this guy and what he is going to do with your money. You have to really trust him.

That said, you must be really sure that this guy knows his stuff and has a great track record to proove it. Don't go by what he says. Check out everything he says first. He should give you a resume/CV/Qualifications and some references. Contact his references and ask them for references, etc. Contact his company and former companies. Check with the Better Business Bureau, your state's Attorney General and the SEC to see if there are complaints against him.

If he comes off as the next Warren Buffet, THEN think about it. If he doesn't, look for someone else.

My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?

Are you sure your financial adviser is legal?

My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?

In and of itself, investing borrowed money is not wrong or dumb- it's called leverage. Professional traders and investors leverage themselves all of the time by using margin or by trading futures which are inherently leveraged instruments. That being said though, here are a couple of things you should know. First, even the pros don't use leverage to the point that losses could endager their livelihood. i.e. they trade with money they can afford to lose abig chunk of without threatnening their sustenance. Second, 90% of traders and investors lose money in the long-run. i.e. only 1 in 10 actually make money, and much less than that can make a meaningful return at that. If your financial advisor was in the elite few percent that can make a good consistent return on money, he wouldnt be your financial advisor. He would be out there somewhere creating a hedge fund and managing millions.

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My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?

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