Quote:
Originally Posted by kscarrol
Well done but being up 75% over almost 4 years is not a 40% annual return...
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Indeed. OP is doing well, but we’ve all had the wind at our backs the past 4 years. I think index funds have returned like, what...50% or so over the same period?
I’m not doubting you, OP, but in my strong opinion, you ‘gamble’ with money you already have, not money you’re borrowing through HELOC or wherever. You lose that money and you’re now struggling to pay off that loan from your other cash flow...or you’re losing your house.
This happened to countless people during the last downturn of the late ‘10s. Economy slows, those investments start to lose money. This compounds when the same people lost their jobs or got underemployed, so now they REALLY can’t pay off these HELOCs.
I wouldn’t discourage you from investing, and your general thinking of making your money work for you is great...just proceed with caution. Leveraged investing is one of the riskiest things you can do.