Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?
This is your opportunity to ask questions. No question too simple or too silly.
Culture war topics are accepted, and proposals for a better intro post are appreciated.
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Notes -
Let’s say you have 50 dollars. Let’s say investor X has 30 dollars but can borrow 70 at 5% interest rate.
You both invest and get a twenty percent return over two years.
You end up with 60 dollars. X ends up after paying off the debt 43 dollars. That’s over a 40% return on X’s 30 dollars.
Now of course X took on much more risk. The question in your fact pattern is how much risk are you taking on. if there is decent equity cushion in your home and given that the rate so low, the answer is “probably not that much risk.”
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