Comments on: Talk about money. Talk about it often. http://www.fabulouslybroke.com/2007/12/talk-about-money-talk-about-it-often/ Just a Girl trying to find a balance between being a Shopaholic and a Saver Sun, 12 Feb 2012 21:24:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Fabulously Broke in the City http://www.fabulouslybroke.com/2007/12/talk-about-money-talk-about-it-often/comment-page-1/#comment-15707 Fabulously Broke in the City Wed, 12 Dec 2007 23:44:00 +0000 http://www.fabulouslybroke.com/2007/12/12/talk-about-money-talk-about-it-often/#comment-15707 Mrs. Micah: Oops! I forgot the link back to the actual article. I didn't give the answer. I just really liked his response.<br/><br/>But you're totally right. Borrowing to invest = craziness... Mrs. Micah: Oops! I forgot the link back to the actual article. I didn’t give the answer. I just really liked his response.

But you’re totally right. Borrowing to invest = craziness…

]]> By: Mrs. Micah http://www.fabulouslybroke.com/2007/12/talk-about-money-talk-about-it-often/comment-page-1/#comment-15704 Mrs. Micah Wed, 12 Dec 2007 23:42:00 +0000 http://www.fabulouslybroke.com/2007/12/12/talk-about-money-talk-about-it-often/#comment-15704 Borrowing to invest---that's like 100% risk. Because even if the market goes up over the long term, that doesn't mean it'll go up in the time frame you need.<br/><br/>There's smart risk (investing in general--preferably in index funds and the like) and stupid risk. This would be stupid risk.<br/><br/>And as you noted in your example, the payoff is $300. Yay for $300, but I don't know if it's worth that kind of risk. Surely her husband could find a way to earn that money in the time the whole investing deal takes. Unless he's counting on 17% returns (which probably means he's making even more risky investments). Borrowing to invest—that’s like 100% risk. Because even if the market goes up over the long term, that doesn’t mean it’ll go up in the time frame you need.

There’s smart risk (investing in general–preferably in index funds and the like) and stupid risk. This would be stupid risk.

And as you noted in your example, the payoff is $300. Yay for $300, but I don’t know if it’s worth that kind of risk. Surely her husband could find a way to earn that money in the time the whole investing deal takes. Unless he’s counting on 17% returns (which probably means he’s making even more risky investments).

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