My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?
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So either way you look at it, baaaaaaaaaaaaaaad idea.... 1) You can't afford to lose the borrowed money, so leverage is wrong in this situation and 2) There's an extremely small chance that you advisor is actually good enough to make you a return that would make it worth the risk even if you could afford to lose the money, because if he could, he wouldnt be working as a small time financial advisor in the first place. Take advice from a professional trader: Fire him. he's either dishonest or dangerously delusional.
My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?Yes.
If you trust him and his performance in the past is better than the interest rate the bank will charge you for the loan then go ahead.
My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?I agree with previous advice...Fire him.
Investment 101:
1. Investment is risky, that is why you get a higher rate of return.
2. Any spare cash, pay off debt first. (Mortgage is debt)
3. Keep enough cash for immediate expenses.
4. Only invest what you do not need.
My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?It all depends on how the money is invested. Putting the money in stocks and leaving it there is too risky.
To get an idea of what might happen you need to learn more about the stock market business. People such as myself trade stocks.
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